MicroStrategy Inc., led by Chairman Michael Saylor, has been buying more Bitcoin since 2020. Most recently, it bought an additional 3,000 Bitcoin for $155.4 million in February.
Accumulating Bitcoin has proven to be a successful investment strategy, allowing the company to see nearly $5 billion in unrealized gains. This is a huge amount of money, especially considering that MicroStrategy has a market capitalization of around $15 billion and records yearly revenue of around $500 million.
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The investment has been so successful that MicroStrategy has rebranded itself into “the world’s first Bitcoin development company.” It hopes to use its software capabilities to build Bitcoin applications and contribute to the network.
The investment has particularly paid off in 2024, as the approval of spot exchange-traded funds (ETFs) and the upcoming Bitcoin halving have propelled the price of the token to near all-time highs. Over the past month, Bitcoin is up nearly 50% and crossed the $60,000 threshold.
“This is a rising tide; it’s gonna lift all boats,” Saylor said on Bloomberg TV. “MicroStrategy is got a levered operating strategy for Bitcoin,” and “I’ve famously said, I’m going to be buying the top forever.”
Saylor articulated his bullish stance on Bitcoin, also mentioning that the new spot ETFs are “facilitating the digital transformation of capital.”
Most notably, Saylor said that “Bitcoin is the exit strategy” when asked about potential plans to sell the position. He said that Bitcoin is “the strongest asset, so what we see right now is that Bitcoin just emerges as a trillion-dollar asset class. And it’s alongside names like Apple, Google and Microsoft.”
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Saylor and MicroStrategy appear to be bullish on Bitcoin for the long haul. Saylor particularly sees Bitcoin as technologically superior to other assets and has a strong foundation for future adoption.
Saylor began buying Bitcoin in 2020 to earn extra on excess cash as well as to hedge against high inflation. After the initial series of purchases, Saylor continued to buy, even selling $216 million in company shares to fund more Bitcoin purchases.
So, with no plans to sell soon, MicroStrategy is positioning itself to become a Bitcoin-centered company. It will be interesting to see how the move plays out. As Bitcoin pushes toward new all-time highs, Saylor could be tempted to sell or continue buying. Regardless, he has made a name for himself by taking a huge gamble on Bitcoin.
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This article When Asked Whether His Firm Would Sell Its 193,000 BTC Stash, Saylor Said, ‘Bitcoin Is The Exit Strategy’ originally appeared on Benzinga.com
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