Michael Saylor, MicroStrategy, and Bitcoin Three Years Later

Michael Saylor, co-founder and executive chairman of MicroStrategy, who previously held the position of CEO for over three decades, remains optimistic about bitcoin three years after his publicly traded business intelligence firm made its initial BTC acquisition.

Saylor has also made significant price forecasts for the cryptocurrency, asserting that its value could surpass $1 million per coin.

MicroStrategy Retains Nearly 153,000 BTC After 3 Years

On August 11, 2020, MicroStrategy made headlines by becoming the first publicly traded company to acquire bitcoin. The firm initially indicated in July 2020 its intention to invest in assets like bitcoin or gold instead of holding cash, aiming to mitigate inflation. Subsequently, the company opted to purchase BTC valued at $250 million, designating it as its primary treasury reserve asset.

At that time, Saylor, who was the CEO of MicroStrategy, stated that the choice to invest in bitcoin was driven by its effectiveness as a hedge against inflation and its superior return on investment compared to other assets.

This initial acquisition initiated a series of investments amid the cryptocurrency’s fluctuating price trends, resulting in the company amassing a substantial BTC reserve. In June 2023, Saylor disclosed that the business intelligence firm acquired 12,333 BTC for $347 million, marking one of the largest purchases by the company in a single quarter since Q2 2021.

As of July 31, 2023, MicroStrategy holds 152,800 BTC, which the company reported was acquired for $4.53 billion at an average purchase price of $29,672 per bitcoin. The business intelligence software firm stands as the largest corporate holder of bitcoin.

In a December 2022 SEC filing, MicroStrategy indicated that it sold 704 BTC to realize tax advantages. This sale marked the company’s first, contrasting with a prior assertion by Saylor that MicroStrategy would never divest any of its holdings.

Saylor Reinforces Bitcoin Advocacy

Saylor is recognized as one of bitcoin’s most ardent advocates and has consistently championed the asset as far superior to gold, referring to it as “digital gold.” However, he was not always a proponent of bitcoin, having predicted its imminent failure in a 2013 tweet, suggesting it would meet the same fate as online gambling.

Since then, Saylor’s perspective on bitcoin has evolved; he has not only led numerous BTC acquisitions at MicroStrategy but has also made personal investments, along with ambitious price forecasts for the leading cryptocurrency.

In May 2022, the MicroStrategy executive chairman stated that BTC’s price could “go into the millions,” asserting that it represents the future of money. The following month, Saylor predicted that bitcoin’s price would soar to $1 million.

Later, in September 2022, he mentioned that the cryptocurrency could reach a valuation of $500,000 within the next decade if it aligns with the market capitalization of gold. For reference, BTC’s market cap is $572.3 billion, while gold’s is currently estimated at $12.8 trillion.

Additionally, Saylor appears undeterred by the ongoing regulatory scrutiny of the crypto industry by the US SEC, suggesting that the regulator’s actions could enhance bitcoin’s price and increase its market share dominance to 80%.

Saylor, who served as MicroStrategy’s CEO for over 30 years, transitioned from that role in August 2022 to become the company’s executive chairman, with MicroStrategy president Phong Le taking over as the new CEO. The American business executive explained that his new position would allow him to concentrate more effectively on the firm’s “bitcoin acquisition strategy and related bitcoin advocacy initiatives.”

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