- Michael Saylor’s business intelligence firm MicroStrategy has become one of the largest Bitcoin holders after buying more than $ 1 billion in BTC in less than six months. Interestingly, the company’s stock price rose roughly 200% over the same time frame.
Michael Saylor’s business intelligence firm MicroStrategy has become one of the largest Bitcoin holders after buying more than $ 1 billion in BTC in less than six months. Interestingly, the company’s stock price rose roughly 200% over the same time frame.
MicroStrategy, which provides business intelligence, mobile software and cloud-based solutions and is listed on Nasdaq, was founded by Michael Saylor in 1989. The firm’s internally developed software helps other organizations make “better business decisions” by analyzing internal and external data.
MicroStrategy CEO has “a huge Bitcoin fortune”
Before mid-2020, the company and its founder were not very fond of Bitcoin. Michael Saylor said in one of the few public comments on record that BTC’s days were numbered in 2013.
However, the economic events caused by the COVID-19 pandemic changed Saylor’s mind about the primary cryptocurrency as he recently announced.
As a result, MicroStrategy started to accumulate BTC. The company announced that it made its first major purchase on August 11, 2020. Less than a month later, the business intelligence giant doubled its Bitcoin investment and Saylor announced that he himself has a sizable BTC fortune.
Despite currently allocating $ 425 million in BTC, MicroStrategy did not stop as it followed two more acquisitions. The second was particularly interesting. The company raised $ 650 million with its high-end convertible banknote offering, and used all the funds to purchase Bitcoin.
They hold more than 3 per thousand of all BTC
As a result, MicroStrategy has allocated $ 1.125 billion to BTC, with an average price of $ 15,964. The firm currently owns 0.335% of all BTC in existence.
The day MicroStrategy announced its first BTC purchase (August 11), the company’s shares (MSTR) traded around $ 135. Subsequently, the company’s shares fell more than 7% on an annual basis.
That said, Bitcoin purchases appear to have a huge positive impact. Less than five months later, the MSTR was $ 390 as of closing price yesterday and $ 403 today.
This represents roughly a 200% increase since announcing his first Bitcoin purchase. For comparison, the price of the cryptocurrency has only increased by 150% since August 11.