Nasdaq-listed business intelligence firm MicroStrategy Inc. (MSTR) has significantly increased its Bitcoin holdings. CEO Michael Saylor announced on Tuesday that the company completed the acquisition of 16,796 additional bitcoins on September 14, 2020, at an aggregate purchase price of $175 million, inclusive of fees and expenses. This brings MicroStrategy's total Bitcoin holdings to 38,250 coins, acquired at an aggregate cost of $425 million.
From Bitcoin Skeptic to Top Corporate Holder
MicroStrategy's board of directors adopted a new Treasury Reserve Policy, as disclosed in a September 11 SEC filing. The policy divides the company's treasury reserves into two categories: cash, cash equivalents, and short-term investments exceeding working capital needs; and Bitcoin, which is designated as the primary treasury reserve asset on an ongoing basis. Interestingly, CEO Michael Saylor had tweeted in 2013, "Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling." Now, he leads one of the largest corporate Bitcoin treasuries.
Aggressive Accumulation Strategy
MicroStrategy initially revealed its Bitcoin allocation strategy during a July 28 earnings call. On August 11, the company purchased 21,454 bitcoins for $250 million, at an average price of approximately $11,652 per coin. With the latest acquisition, the average cost per Bitcoin drops to around $11,111. The crypto community views these purchases as strongly bullish—a multi-billion-dollar public company choosing to hold Bitcoin as a core reserve asset and repeatedly increasing its position.
Macro Implications: Institutional Adoption Accelerates
MicroStrategy's treasury pivot underscores a paradigm shift in corporate attitude toward cryptocurrencies. Amid unprecedented monetary expansion and negative real yields, Bitcoin's fixed supply of 21 million units and decentralized nature appeal to institutions seeking a store of value. The company explicitly stated that its Bitcoin holdings "may increase beyond the $250 million investment" depending on market conditions and business needs. This move is expected to inspire other publicly traded firms to follow suit.
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