Back in 2013, Michael Saylor, one of the co-founders of cybersecurity firm Microstrategy, initially believed that Bitcoin was headed for failure. However, he had a change of heart and completely shifted his company’s business strategy to focus on Bitcoin investment. This decision turned out to be incredibly successful, propelling Microstrategy into the top 100 publicly traded U.S. companies by market cap.
Over the past month, Microstrategy has surpassed numerous well-known companies like Nike and Dell and currently holds the 88th position with a market cap exceeding $100 billion as of Wednesday.
The Virginia-based software company recently announced its plans to acquire more Bitcoin despite the cryptocurrency reaching new record highs.
In 2020, Saylor’s viewpoint on Bitcoin changed as he delved deeper into it during the pandemic. He expressed regret for not investing earlier. Since Microstrategy’s initial $250 million investment, they have accumulated 331,200 Bitcoin, valued at over $30 billion.
Microstrategy’s significant investment in Bitcoin has positioned the company as a representation of the cryptocurrency. Amid the recent surge in the crypto market, the company’s stock has experienced substantial growth, even after the announcement of purchasing 51,780 Bitcoin on Monday. Starting the year at around $65, MSTR shares are now trading close to $500.
Since the election night ushering in a pro-crypto Trump and Republican Congress, Bitcoin has been hitting new all-time highs every few days. It broke through $94,000 for the first time on Wednesday.
Microstrategy’s latest Bitcoin purchase follows two large acquisitions in September, along with the acquisition of 27,000 Bitcoin between Oct. 31 and Nov. 10, indicating an accelerated pace in their buying strategy.
The company remains steadfast in its Bitcoin buying approach, shifting from using cash for purchases to seeking funds from institutional investors. They recently announced offering $1.75 billion of convertible senior notes to qualified institutional buyers, which was later increased to $2.6 billion. The proceeds will be used to acquire more Bitcoin and for general corporate purposes.
Since 2020, Microstrategy has invested approximately $16.5 billion in Bitcoin, obtaining the majority of its supply at a fraction of its current value.
The success of Microstrategy has prompted other companies, like Microsoft, to consider investing in Bitcoin as well. Microsoft’s shareholders are set to vote on a proposal next month to diversify their assets by including Bitcoin in their investments.
