A decade ago, MicroStrategy CEO Michael Saylor expressed skepticism toward Bitcoin, warning of possible regulatory threats. Pete Rizzo, Editor-in-Chief of Bitcoin Magazine observed this on the tenth anniversary of this tweet.
On December 7, 2013, Saylor wrote:
“In the absence of a credible sponsor, #Bitcoin is in imminent danger of being regulated and disappearing.”
In the decade since, Bitcoin has not only gone unregulated, but it has thrived, becoming the fastest growing asset class of the 21st century. Saylor, to his credit, was attentive and he went on to lead his company to become one of the largest Bitcoin whales in the world.
MicroStrategy, a recognized leader in business analytics and mobility software, turned to Bitcoin investing in 2020 and hasn’t looked back. During the third quarter of 2023, the company added 6,067 Bitcoins to its portfolio, bringing its total to 158,400 BTC. The company spent approximately $167 million on the acquisition, resulting in an average price of $27,531 per Bitcoin.
MicroStrategy’s Bitcoin acquisition strategy didn’t stop there. By the end of November 2023, the company had accumulated 174,530 BTC, which is equivalent to almost 1% of the circulating supply of Bitcoin.
The aggressive acquisition strategy appears to have paid off. With the current price of Bitcoin hovering around $37,700, MicroStrategy’s Bitcoin wallet is now worth more than its original purchase price, resulting in a profit margin of approximately $1.3 billion. This remarkable profitability indicator highlights the potential of Bitcoin as an asset class, even amid market fluctuations.
In addition to building a large Bitcoin wallet, MicroStrategy is exploring Bitcoin-related services. The company announced the development of an enterprise plugin for Bitcoin’s Lightning Network in 2022, underscoring its commitment to integrating and leveraging Bitcoin technology into its business operations.
From expressing concerns about Bitcoin’s regulatory prospects to becoming one of its largest institutional investors, MicroStrategy’s journey reflects the changing dynamics of the crypto market and has become l one of its most successful actors.