Michael Saylor’s MicroStrategy is by a mile the largest publicly-traded company holding Bitcoin on its balance sheet. The company currently holds 105,085 BTC acquired at an average price of approximately $26,080 per unit of bitcoin including fees and related expenses.
While the price of bitcoin took a nosedive in April, many had questioned the company’s decision not to sell a portion of its BTC stash when the market was at its peak a month earlier. At its peak, MicroStrategy was sitting on over $6.5 billion worth of bitcoin acquired for way less than half its value.
Then, the market dropped by over 50% within two months to the $27k-$29k region, buoyed by the exodus of Bitcoin miners from China.
At that point, Bitcoin bears were already calling for a further dip that would take prices below MicroStrategy’s average price, and potentially mount some pressure on the company for the first time since it ventured into Bitcoin. Most of MicroStrategy’s bitcoin investment money was raised from debt issued by the company.
Rather surprisingly, MicroStrategy was gobbling up bitcoins as prices dropped, unfazed by short-term price action. It was during the market drop that the company reached the 100k bitcoin milestone. During a Q2 investor call, CEO Michael Saylor told investors that they can expect the company to “purchase additional bitcoin.”
Bitcoin Back Above $50k
This weekend, Bitcoin climbed back above $50k for the first time since May. At the current market price, MicroStrategy’s 105,085 bitcoins which represent 0.5% of the entire supply are valued at over $5.2 billion.
MicroStrategy has always made it clear that its Bitcoin bet is not a short-term play. Saylor, who controls a majority of the company’s voting rights, remains adamant that the company will unload its bitcoins anytime soon. In a recent interview, he casually hinted at the possibility of the company holding bitcoin for over 100 years.
If anything, the recent market drop has given MicroStrategy a chance to demonstrate that its foray into bitcoin is not for the quick bucks. The company has made one of the biggest bets on nascent cryptocurrency, and it is only a matter of time until it ends up being one of the best corporate investments ever, or the worst profitable trade that turned on its head.