In a bold and groundbreaking move, Michael Saylor’s MicroStrategy revolutionized corporate finance by embracing Bitcoin (BTC) as its primary treasury reserve asset in 2020.
This visionary decision, announced exactly three years ago, sent shockwaves through the business world, solidifying MicroStrategy’s position as a trailblazer in the realm of digital assets.
The move was made as part of MicroStrategy’s first-ever investment in Bitcoin, with the business intelligence firm acquiring 21,454 BTC for roughly $250 million, or $11,653 per coin.
MicroStrategy’s bet on Bitcoin can be characterized as a resounding success, demonstrated by substantial returns on investment and a notable positive influence on the company’s stock price.
Since August 10, 2020 – the day MicroStrategy unveiled its Bitcoin-focused strategy – MicroStrategy’s (NASDAQ: MSTR) shares surged 206%, from around $123 per share to today’s price of over $375 per share, according to data shared by Michael Saylor on August 10.
Bitcoin and equity returns since MicroStrategy’s initial investment
Over that 3-year period, Bitcoin’s price rallied 145%, skyrocketing from more than $11,600 to about $29,400. The return on investment is exceptional for MicroStrategy, even though Bitcoin is trading significantly lower than its all-time high of almost $69,000.
MicroStrategy continued to invest aggressively in BTC since the first acquisition, even in the worst market downturns. The firm owns 152,800 Bitcoin as of August 1, 2023. The average purchase price currently stands at $29,672 per Bitcoin, with a total cost of $4.53 billion.
Meanwhile, Saylor’s chart also clearly highlights the margin by which Bitcoin outperformed the price returns in the S&P 500 and Nasdaq since August 2020, with the two stock indexes gaining just 33% and 25% during the period.
Biggest commodities like gold and silver lost 5% and 19% in value since then, respectively, while bonds plummeted 18%.
