MicroStrategy, a leading business intelligence and cloud platform company, has announced that it has purchased an additional 850 Bitcoin, worth about $37.2 million, as part of its ongoing strategy to acquire more of the cryptocurrency as a reserve asset. The company now holds a total of 122,478 Bitcoin, valued at approximately $5.3 billion, according to a press release issued on February 7, 2024.
The company’s CEO, Michael Saylor, said that the purchase was made in accordance with its treasury reserve policy, which aims to maximize long-term value for its shareholders. He added that Bitcoin is a “dependable store of value” and an “attractive investment asset” that has more long-term appreciation potential than holding cash.
MicroStrategy was one of the first publicly traded companies to adopt Bitcoin as its primary treasury reserve asset, starting in August 2020. Since then, the company has been steadily increasing its Bitcoin holdings, using its excess cash flow and issuing debt and equity to fund its purchases. The company has also been vocal in promoting Bitcoin as a superior form of money that can empower individuals and organizations around the world.
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The company’s latest purchase comes amid a bullish market sentiment for Bitcoin, which has surged to new all-time highs in 2024, reaching over $50,000 per coin in January. The cryptocurrency has also gained more mainstream adoption and recognition, with several major institutions and corporations announcing their involvement or interest in Bitcoin.
Some of the notable examples include Tesla, which invested $1.5 billion in Bitcoin and started accepting it as a payment option; PayPal, which enabled its users to buy, sell and hold Bitcoin and other cryptocurrencies; and Visa, which partnered with several crypto platforms to enable crypto payments and transfers.
MicroStrategy’s move to increase its Bitcoin exposure is likely to inspire more companies and investors to follow suit, as they seek to hedge against inflation and currency devaluation, and benefit from the potential growth and innovation that Bitcoin offers. As Saylor said in a recent interview, “Bitcoin is the best money ever created in the history of the world.”
According to data from bitcointreasuries.org, a website that tracks the Bitcoin holdings of publicly traded and private companies, as of February 7, 2024, the top three institutional holders of Bitcoin are:
MicroStrategy: The business intelligence software company has been one of the most vocal and aggressive advocates of Bitcoin, buying over 150,000 bitcoins since August 2020. The company’s CEO, Michael Saylor, has repeatedly stated that Bitcoin is a superior asset class than cash or gold, and that he intends to hold it for the long term.
MicroStrategy’s Bitcoin holdings are worth over $8 billion at current prices, representing about 80% of its market capitalization.
BlackRock: The world’s largest asset manager, with over $9 trillion in assets under management, has also shown interest in Bitcoin as an investment opportunity. In January 2021, the company filed documents with the SEC indicating that two of its funds could invest in Bitcoin futures.
In February 2023, BlackRock’s CIO of global fixed income, Rick Rieder, said that Bitcoin had “caught the attention” of many people and that it was “here to stay”. BlackRock’s Bitcoin holdings are estimated at over 40,000 bitcoins, worth over $2 billion.
Fidelity: The financial services giant, with over $4 trillion in assets under management, has been a pioneer in the cryptocurrency space, launching its own digital asset platform, Fidelity Digital Assets, in 2018. The platform offers custody, trading and other services for institutional clients who want to access the crypto market.
Fidelity also has its own Bitcoin fund, the Wise Origin Bitcoin Index Fund I, which was launched in August 2020 and has over $150 million in assets. Fidelity’s Bitcoin holdings are estimated at over 30,000 bitcoins, worth over $1.5 billion.