MicroStrategy Adds 15,355 Bitcoin Worth $1.42 Billion, Surges into Top 100 U.S. Companies

The business intelligence firm MicroStrategy, transformed into a Bitcoin powerhouse, has once again made headlines with a huge Bitcoin acquisition.

Once again, under the direction of Executive Chairman Michael Saylor, the company purchased a large tranche of Bitcoin—15,355 BTC, to be exact—last week, at an average price of $92,737. So, once again, the company’s status as the largest corporate holder of Bitcoin is more or less ensured. And, once again, this seems to be a part of Saylor’s long-term, playbook commitment to accumulating Bitcoin.

The recent purchase increases MicroStrategy’s total holdings to 553,555 BTC, with the newly acquired Bitcoins currently valued at $52.7 billion. This gives the firm an average purchase price of $68,459 per BTC and places it in an extraordinarily profitable situation with an unrealized profit of $14.8 billion.

MicroStrategy is affecting far more than just the crypto markets with its Bitcoin-based approach. The company is altering its standing in a big way. As of this week, MicroStrategy has a market cap of an impressive $99.15 billion. That means it has breached the ranks of the top 100 largest publicly traded companies in the U.S. And this MSTR chart? It’s the 88th largest company in America.

Climbing this high is no small feat. In just one day, $MSTR jumped 11 spots in the rankings and 18 spots over the past week. The company’s meteoric rise has been fueled not just by the surging price of Bitcoin, but also by increased investor interest and trading activity surrounding its stock. Notably, MicroStrategy is now the 6th most traded stock by volume in the U.S. market—an extraordinary achievement for a company that was, until a few years ago, known primarily for its enterprise software solutions.

MicroStrategy’s consistency is what makes it truly remarkable. For 290 consecutive trading days, the company has held a position that could, and likely would, make it S&P 500-ready. That’s a long time to hold a position that makes it suitable for inclusion in a stock index, especially one as prestigious and as widely watched as the S&P 500.

Even though other institutional players have entered the Bitcoin market only tentatively, MicroStrategy has gone all-in. Starting with its first purchase in August 2020, the company has followed an unflagging accumulation strategy, in fact so much so that some have described it as an “accumulation by force” strategy, with MicroStrategy often raising capital through convertible debt offerings and equity sales to fund the additional purchases.

Putting corporate reserves into something so typically unstable certainly raised eyebrows at first. But nowadays, when you look at the average purchase price of $68,459, and when you compare that with the current trading range of Bitcoin, it sort of speaks for itself. MicroStrategy is very definitely in the green with this investment.

This latest purchase of more than $1.4 billion signals something beyond mere confidence. It reveals a long-term thesis that has been gaining traction and could soon command even more respectability: Bitcoin is not merely a hedge. It is a store of value that, in the right conditions, can significantly outperform traditional risk assets. And those conditions are looking more favorable thanks to rising institutional interest and, at long last, some consistency in U.S. regulation.

Currently, MicroStrategy stands an excellent chance of becoming part of the S&P 500 index—possibly in the very near future. Such inclusion would be important not just as a stamp of approval for the company’s unusual strategy but also because it would almost certainly boost demand for the company’s stock.

At present, MicroStrategy serves as a prime example of an audacious corporate strategy. The firm currently holds more than half a million BTC, with the potential for profits numbering in the billions. What it’s doing seems to be paying off handsomely. But even if it’s not exactly a repeatable playbook for other firms, it’s undeniably a pretty nice figurehead for a Bitcoin business in 2023.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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