It’s now been three years since business intelligence giant MicroStrategy first accumulated the flagship digital asset Bitcoin (BTC).
Michael Saylor spearheaded the strategy of making Bitcoin MicroStrategy’s “primary treasury reserve asset,” directing the firm to buy 21,454 BTC for $250 million, at an individual price of roughly $11,653, on August 11th, 2020.
In the up-and-down years since, MicroStrategy has continued to consistently invest in the top crypto asset by market cap, becoming the largest institutional holder of Bitcoin. As of July 31st, the firm holds 152,800 BTC acquired for a total cost of $4.53 billion at an average individual price of $29,672.
Bitcoin is trading for $29,391 at time of writing.
Saylor was MicroStrategy’s chief executive when the company first bought BTC but now serves as its executive chairman after stepping back from the CEO role last year.
MicroStrategy’s stock (MSTR) is up more than 210% since August 10th, 2020, the day before it made the announcement to first purchase Bitcoin. MSTR is priced at $384.31 at time of writing, according to MarketWatch.
It hasn’t been an entirely smooth ride, however. MSTR is down more than 70% from a three-year high of $1,315, which it hit on February 9th, 2021, right as BTC was in the midst of an ascendant bull run.
And in June 2022, MicroStrategy faced concerns it could receive a margin call on a Bitcoin-backed loan, though those fears never materialized.
In a margin call, a trader or investor is required to put up more funds to avert the closure or liquidation of a leveraged position.
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