MicroStrategy’s Michael Saylor is known for his unorthodox and bold investing style, which often attracts criticism. His Bitcoin focused strategy and buying the top digital asset at near-highs have their fair share of critics. But recent developments tell us that Bitcoin’s bullish sentiment has been right after all, well, at least for today.
According to Bloomberg, MicroStrategy’s current stash of $26 billion in BTC is now bigger than Nike and IBM’s cash holdings. Only a few top companies, led by Apple and Alphabet, hold more assets in their treasuries.
The $26 billion in Bitcoin is a significant milestone for MicroStrategy, which adopted an aggressive Bitcoin-focused strategy under Michael Saylor, and for the crypto industry in general.
MicroStrategy’s Bitcoin-First Policy
Saylor, MicroStrategy’s co-founder and chairman, started to invest in Bitcoin in 2020 as an inflation hedge. During this time, the company’s revenues and growth stagnated, and Saylor decided to invest in the leading digital asset.
MicroStrategy’s $26 Billion #Bitcoin Cache Is Larger Than IBM, Nike Cash Holdingshttps://t.co/E5Q3bgDUsA
— Michael Saylor
(@saylor) November 16, 2024
The company used cash from its operations to buy BTC, then shifted to using the proceeds from the sales of stocks and convertible debt sales to boost its buying power.
With most market experts lambasting Saylor for his unconventional and risky venture, the financial gamble tended to pay off, eventually catapulting MicroStrategy to the seat of the largest publicly listed entity with the most substantial holding of the crypto.
The Virginia-headquartered company now takes pride in owning the biggest BTC inventory in the cryptocurrency sector, beating other key players like Riot Platforms and Marathon Digital.
According to Bloomberg’s data, MicroStrategy’s Bitcoin holdings are comparable to Exxon Mobil’s $26.9 billion cash and marketable securities holdings and Intel’s $26.6 billion, and they approximate General Motors’s holdings with $32.2 billion.
MicroStrategy’s Holdings Grow As BTC Price Surges
MicroStrategy is one of the top publicly traded companies significantly dependent on BTC. Since the company adopted a Bitcoin-focused investing policy, its growth and revenues are closely linked to the asset’s price.
However, Saylor’s aggressive strategy has a few detractors. Some observers have cautioned others about the risks of crypto investing, and some consider the strategy an opportunity to take advantage of the crypto’s bullish sentiment.
For MicroStrategy, the Bitcoin bet has paid off. The company’s Bitcoin holdings bought in August 2020 have already gained 2,500%, and its aggressive investing strategy is not slowing down.
MicroStrategy To Buy More BTCsMicroStrategy plans to continue investing in Bitcoin and other crypto assets. The company has announced that it plans to expand its crypto portfolio by purchasing $42 billion in the next three years. Its plan to buy more BTC reflects the company’s bullish approach to crypto’s long-term future and as an inflation hedge.
MicroStrategy’s success has pushed other companies to increase their investments in crypto. For example, Metaplanet has integrated BTC into its portfolio, following MicroStrategy’s lead. MicroStrategy’s investing thesis has become a template for other companies looking to expand into crypto.
Featured image from Wikimedia Commons, chart from TradingView
