The company has been aggressively acquiring Bitcoin since 2020, but was aggressive buying Bitcoins since November 2024. During that month, the company made a record-breaking acquisition of 55,500 BTC, bringing its total holdings to 386,700 BTC at the time
And throughout 2024, the company spent a staggering $22 billion on Bitcoin, achieving a yield of 74.3%.
This buying spree continued into the new year.
On January, 2025, the leading software company continued being a Bitcoin investment powerhouse, and kicked off 2025 with yet another significant Bitcoin purchase, and announced the acquisition of 1,070 Bitcoins for approximately $101 million.
This purchase was made at an average price of $94,004 per Bitcoin, bringing MicroStrategy's total Bitcoin holdings to 447,470 BTC.
Michael Saylor, the company’s co-founder, served as CEO from 1989 until 2022 and now holds the position of Executive Chairman, has been a vocal advocate for Bitcoin, often citing its scarcity and potential as a store of value.
The company's strategy involves using proceeds from the issuance and sale of shares under convertible notes sales agreements to fund its Bitcoin acquisitions.
In other words, MicroStrategy's Bitcoin strategy is centered around using Bitcoin as a primary treasury reserve asset.
MicroStrategy views Bitcoin as "digital gold" and a hedge against inflation. By holding Bitcoin, the company aims to protect its cash reserves from inflation and currency devaluation. It also allows it to employs a dollar-cost averaging approach, consistently buying Bitcoin over time regardless of price fluctuations, which can help it mitigate the risks associated with market volatility.
To fund its Bitcoin purchases, MicroStrategy has raised capital through equity offerings and debt instruments.
Despite the bullish trend in Bitcoin prices, MicroStrategy acknowledges the risks associated with its strategy, including price volatility and regulatory uncertainties. However, the company remains committed to its Bitcoin investment strategy, with plans to raise up to $2 billion for further BTC acquisitions.
MicroStrategy's bold moves have not gone unnoticed, as the company recently joined the Nasdaq 100 index, enhancing its visibility among top firms and providing indirect exposure to Bitcoin through the Invesco QQQ Trust ETF.
MicroStrategy's aggressive Bitcoin strategy has set a new standard in corporate finance, inspiring other companies to consider Bitcoin as a viable treasury asset
MicroStrategy Incorporated is an American software company specializing in business intelligence (BI), mobile applications, and cloud-based services.
Since 2020, MicroStrategy has gained attention for its significant Bitcoin investments, with its stock often viewed as a proxy for Bitcoin exposure due to the company’s substantial cryptocurrency holdings.
At this time, the second largest corporate holder of Bitcoin, is the Luna Foundation Guard (LFG), which reportedly holds approximately 39,897 BTC, valued at around $1.7 billion.
The third largest corporate holder of Bitcoin is Marathon Digital Holdings Inc., with approximately 25,945 BTC, valued at around $2.5 billion.
The electric carmaker Tesla was on a buying spree way back in 2021, and owned around $1.5 billion worth of Bitcoin, which was approximately 42,902 BTC at that time.
However, the company has since sold a significant portion of its holdings, and as of the reports this time around, Tesla holds approximately 11,509 BTC.