Michael Saylor’s MicroStrategy revolutionized the corporate finance industry in 2020 by adopting Bitcoin (BTC) as its primary treasury reserve asset, making it a high-quality, privacy-focused, and intriguing headline. This visionary decision, announced three years ago, solidified MicroStrategy’s pioneering position in the digital assets field, causing shockwaves in the business world.
This move was made as part of MicroStrategy’s initial investment in Bitcoin, where the business intelligence firm acquired approximately 21,454 BTC for around $250 million or $11,653 per coin. MicroStrategy’s investment in Bitcoin can be considered a significant success, given its substantial returns and notable positive impact on the company’s stock price.
According to data shared by Michael Saylor on August 10th, since MicroStrategy disclosed its Bitcoin-focused strategy on August 10th, 2020, the company’s shares (NASDAQ: MSTR) have increased by 206%, rising from approximately $123 per share to over $375 per share today.
During this three-year period, the price of Bitcoin has surged by 145%, skyrocketing from $11,600 to approximately $29,400. Despite trading significantly below the all-time high of around $69,000, MicroStrategy achieved outstanding investment returns.
MicroStrategy has continued to aggressively invest in BTC, even during the worst market downturns. As of August 1st, 2023, the company holds 152,800 Bitcoin, with an average purchase price of $29,672 per Bitcoin and a total cost of $4.53 billion.
Meanwhile, Saylor’s graph (located above) clearly highlights that Bitcoin has outperformed the price returns in the S&P 500 and Nasdaq since August 2020, with the two stock indices gaining only 33% and 25% respectively during this period. While gold and silver, the largest commodities, have lost 5% and 19% respectively since that date, bonds have dropped by 18%.