- MicroStrategy buys more Bitcoin to round off the year.
- The company is the biggest public corporate BTC holder.
- 2023 BTC purchases far exceed those made in the prior year.
MicroStrategy made history in August 2020 by becoming the first publicly listed company to adopt a Bitcoin treasury strategy. Since then, the company has continued accumulating Bitcoin to build the world’s largest corporate holding of BTC. On December 27, the company purchased an additional 14,620 Bitcoin to close the year with five times as many BTC purchases compared to 2022.
MicroStrategy Continues Stacking Sats
According to a Form 8-K filing with the Securities Exchange Commission on December 27, MicroStrategy acquired an additional 14,620 Bitcoin at $615.7 million. This took the company’s total Bitcoin holdings to 189,150 BTC, equating to a valuation of $8.135 billion at the time of writing.
The filing also revealed that MicroStrategy had spent $5.895 billion to build up its Bitcoin treasury reserves, giving an average purchase price of $31,168 per coin. At the current BTC price, MicroStrategy is sitting on an unrealized profit of $2.24 billion.
According to saylortracker.com, MicroStrategy’s Bitcoin purchases in 2023, including the latest 14,620 coins, totaled 56,650 BTC. This represents a 495% increase compared to the company’s total purchases of 9,517 coins in 2022, indicating a heightened confidence level this year compared to 2022.
MicroStrategy and its chair, Michael Saylor, have become synonymous with an unwavering belief in Bitcoin’s potential. Saylor has frequently touted that firms adopting a Bitcoin strategy stand to thrive amid times of economic turbulence.
MicroStrategy’s treasury strategy is underpinned by a belief in Bitcoin’s virtues for weathering economic uncertainty. Since first purchasing BTC in 2020, Saylor has often extolled Bitcoin’s superior qualities over traditional safe-haven assets like gold. During the company’s first earnings call post-BTC purchase, Saylor boldly told investors, “It’s smarter, it’s stronger, it’s faster than gold.”
MicroStrategy’s stock price is closely tied to Bitcoin’s price performance. Since the start of 2023, the company’s stock price has increased by over 340%, moving from an opening price of $139.34 to $620.26 at the time of writing. Meanwhile, BTC is up 159% year-to-date at the time of writing.
On the Flipside
- MicroStraegy’s Bitcoin strategy makes it more of a proxy for BTC investing than an enterprise software company.
- Critics argue that MicroStrategy’s unwavering treasury strategy exposes shareholders to excessive risk, yet such arguments fade during periods of strong BTC performance.
- Saylor recently reiterated that a Bitcoin-based strategy is generally safe for institutions.
Why This Matters
With its latest purchase, MicroStrategy continues to lead the way in corporate Bitcoin adoption. Its huge and growing holdings lend institutional legitimacy to the narrative of Bitcoin as “digital gold.”
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