Since beginning to buy Bitcoin in 2020, MicroStrategy has amassed more than 252,220 BTC, which recently surpassed $20 billion in value.
Their Bitcoin holdings are now worth more than double their original investment – a return on investment (ROI) of over 106.96%. This substantial growth marks MicroStrategy as a leading example of corporate commitment to cryptocurrency.
According to data from CoinMarketCap, Bitcoin has reached a record ATH price of $81,497.
Background on MicroStrategy’s Bitcoin Strategy
MicroStrategy initially entered the Bitcoin market in August 2020, as CEO Michael Saylor believed Bitcoin could be a hedge against inflation.
The company’s first purchase was 21,454 BTC at an average price of $11,652 per Bitcoin. This early investment set off a series of additional Bitcoin purchases by the company.
By December 2020, MicroStrategy’s total Bitcoin assets had grown to over 70,470 BTC, valued at around $1.125 billion. Saylor’s approach has been characterized as “stacking sats” through regular purchases, using both company funds and financing from issued convertible notes. Saylor, a public advocate for Bitcoin, sees it as a means to store value in a world with high inflation and economic uncertainty.
Growth of the MicroStrategy Portfolio in 2021-2024
MicroStrategy continued to accumulate Bitcoin aggressively in 2021, purchasing over 32,220 BTC in Q4 alone at an average price of $20,675 per Bitcoin.
This was part of their largest purchasing spree, and by the end of the year, they had bought more than 124,391 BTC. The average price of Bitcoin purchases in 2021 was higher than the year before, but the company remained committed to its strategy, amassing Bitcoin at different price levels during the market’s volatility.
In 2022, MicroStrategy slowed down on purchasing due to a market decline. During this period, they only bought around 5,600 BTC across various quarters, averaging a purchase price of about $19,000 per Bitcoin.
Despite the price decline in the cryptocurrency market during 2022, Saylor continued to emphasize that Bitcoin was a reliable long-term asset.
MicroStrategy even conducted its only sale of Bitcoin in December 2022 for tax benefits, selling 704 BTC but quickly repurchasing a larger amount, thus showing its commitment to long-term holdings.
As Bitcoin prices began to rebound in 2023, MicroStrategy ramped up its purchases again, adding around 20,300 BTC in just the first half of the year, with an average acquisition cost of $28,751 per Bitcoin. This increased their total holdings to over 214,000 BTC, making them the single largest corporate holder of Bitcoin by far.
As Bitcoin prices rose to over $81,000 ATH, the value of MicroStrategy’s holdings spiked, allowing the company to cross the $20 billion mark in Bitcoin value.
Here is an up-to-date MicroStrategy Bitcoin purchases chart.
| Date | BTC Purchased | Amount | Total Bitcoin | Total Dollars |
|---|---|---|---|---|
| 9/20/2024 | 7,420 | $458.2M | 252,220 | $9.91B |
| 9/13/2024 | 18,300 | $1.11B | 244,800 | $9.45B |
| 8/1/2024 | 169 | $11.4M | 226,500 | $8.34B |
| 6/20/2024 | 11,931 | $786.0M | 226,331 | $8.33B |
| 4/1/2024 – 5/1/2024 | 164 | $7.8M | 214,400 | $7.538B |
| 03/19/2024 | 9,245 | $623.0M | 214,246 | $7.53B |
| 03/11/2024 | 12,000 | $821.7M | 205,000 | $6.91B |
| 02/26/2024 | 3,000 | $155.0M | 193,000 | $6.09B |
| 02/06/2024 | 850 | $37.2M | 190,000 | $5.93B |
| 12/27/2023 | 14,620 | $615.7M | 189,150 | $5.90B |
| 11/30/2023 | 16,130 | $593.3M | 174,530 | $5.28B |
| 11/01/2023 | 155 | $5.3M | 158,400 | $4.69B |
| 09/24/2023 | 5,445 | $147.3M | 158,245 | $4.68B |
| 07/01/2023 – 7/31/2023 | 467 | $14.4M | 152,800 | $4.53B |
| 04/29/2023 – 6/27/2023 | 12,333 | $347M | 152,333 | $4.517B |
| 04/05/2023 | 1,045 | $29.30M | 140,000 | $4.170B |
| 03/27/2023 | 6,455 | $150.00M | 138,955 | $4.140B |
| 12/24/2022 | 810 | $13.65M | 132,500 | $4.027B |
| 12/22/2022 | -704 | $11.8M | 131,690 | $4.012B |
| 11/01/2021 – 12/21/2022 | 2,395 | $42.8M | 132,395 | $4.024B |
| 9/20/2022 | 301 | $6M | 130,000 | $3.981B |
| 6/28/2022 | 480 | $10M | 129,699 | $3.975B |
| 2/15/2022 – 4/5/2022 | 4,167 | $190M | 129,218 | $3.965B |
| 1/1/2022 – 1/31/2022 | 660 | $25M | 125,051 | $3.775B |
| 12/30/2021 | 1,914 | $94.2M | 124,391 | $3.750B |
| 11/29/21 – 12/8/2021 | 1,434 | $82.4M | 122,478 | $3.655B |
| 11/28/21 | 7,002 | $414M | 121,044 | $3.573B |
| 9/ 13/21 | 8,957 | $419M | 114,042 | $3.159B |
| 6/21/21 | 13,005 | $249M | 105,085 | $2.740B |
| 5/18/21 | 229 | $10M | 92,079 | $2.251B |
| 5/13/21 | 271 | $15M | 91,850 | $2.241B |
| 4/5/21 | 253 | $15M | 91,579 | $2.226B |
| 3/12/21 | 262 | $15M | 91,326 | $2.211B |
| 3/5/21 | 205 | $10M | 91,064 | $2.196B |
| 3/1/21 | 328 | $15M | 90,859 | $2.186B |
| 2/24/21 | 19,452 | $1.026B | 90,531 | $2.171B |
| 2/2/21 | 295 | $10M | 71,079 | $1.145B |
| 1/22/21 | 314 | $10M | 70,784 | $1.135B |
| 12/21/20 | 29,646 | $650M | 70,470 | $1.125B |
| 12/4/20 | 2,574 | $50M | 40,824 | $475M |
| 9/14/20 | 16,796 | $175M | 38,250 | $425M |
| 8/11/20 | 21,454 | $250M | 21,454 | $250M |
Financial Impact and Strategy Behind Bitcoin Accumulation
MicroStrategy’s high-risk strategy includes taking on debt to fund Bitcoin purchases. The company raised approximately $800 million through convertible senior notes in 2024, adding to its substantial debt from previous years.
However, this high debt has also been profitable for MicroStrategy, as the recent surge in Bitcoin’s price has resulted in significant unrealized gains, thus increasing shareholder value and validating their Bitcoin-centric strategy.
MicroStrategy’s position in the Bitcoin market affects other corporate investors as well. With Bitcoin’s price climbing to new highs in 2024, MicroStrategy’s success is sparking renewed interest in Bitcoin from both institutional and retail investors.
The company has outlined a “21/21” plan, intending to accumulate up to $21 billion in Bitcoin by raising $42 billion through both equity and debt.
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Final Take
The journey of MicroStrategy’s Bitcoin investment is both pioneering and high-stakes, with a 106%+ ROI showing the payoff of a relentless acquisition strategy. While this method has brought in billions in paper gains, it also involves high risks, especially in the volatile cryptocurrency market.
Nevertheless, the firm’s success has reshaped corporate perspectives on Bitcoin, prompting discussions on the potential of digital assets in treasury management.
