Why MicroStrategy Holds Bitcoin (BTC): How Long?

Bittime - Bitcoin has become more than just a digital asset. This crypto asset has become an investment philosophy for many parties, including MicroStrategy. So, what is the reason for MicroStrategy holding Bitcoin (BTC)? Check out the review.

These companies have not only accumulated large amounts of Bitcoin, but have also made it part of their corporate identity. 

With a controversial but consistent strategy, MicroStrategy has succeeded in attracting the attention of the financial world and the crypto community. The question is, why are they keeping Bitcoin, and for how long?

What is MicroStrategy?

MicroStrategy is a software company from the United States that was founded in 1989 by Michael J. Saylor and Sanju Bansal. Headquartered in Virginia, MicroStrategy is known as a pioneer in the industry business intelligence (WITH A). 

The company provides data analytics solutions that help companies make data-driven decisions.

In addition to data analysis, MicroStrategy offers mobile and cloud-based application development services. With this technology, they help companies become "smart companies" through innovation and digital transformation.

Currently, Michael Saylor serves as Executive Chairman, while the role of CEO is held by Phong Le since 2022. This change allows Saylor to focus on the company's Bitcoin strategy and advocacy of using Bitcoin as a reserve asset.

Read also: Will MicroStrategy Stop Buying Bitcoin Someday?

How Much Bitcoin Does MicroStrategy Have?

Until 20 June 2024, MicroStrategy holds 226.331 Bitcoin, making it the public company with the largest Bitcoin holdings in the world. With a total value of approx $15 billion, Bitcoin became an important part of their balance sheet. 

This figure has continued to increase since the company started buying Bitcoin in August 2020.

MicroStrategy Bitcoin Ownership History

MicroStrategy's decision to accumulate Bitcoin started with a big move on August 2020. Here is their acquisition journey:

• August 2020: Purchased 21,454 BTC worth $250 million.

• September 2020: Added 16,796 BTC for $175 million.

• December 2020 - February 2021: Purchased more than 70,784 BTC.

• March 2021: Used $1.05 billion worth of convertible bond proceeds to purchase 9,000 BTC.

• June 2021: Added 13,005 BTC worth $500 million.

• March 2024: Acquired an additional 9,245 BTC.

• June 2024: Made a final purchase of 11,931 BTC.

This consistency in purchases reflects Michael Saylor's strong belief in Bitcoin's future.

Read also: MicroStrategy Buys More Bitcoin: $4.6 Billion Fund Makes BTC Fly?

Why MicroStrategy Hold Bitcoin (BTC)?

There are several reasons why MicroStrategy holds Bitcoin (BTC). The following is the explanation:

1. Bitcoin As an Inflation Hedge

Michael Saylor views Bitcoin as “digital gold”—an asset with a limited supply that will not be affected by inflation. Unlike fiat currency, Bitcoin supply will only reach 21 million units, making it an asset that is resistant to long-term depreciation in value.

2. Superior Store of Value

Bitcoin is considered more reliable than cash. As a decentralized asset, Bitcoin offers security and transparency that traditional financial systems struggle to match.

3. Smart Buying Strategy

MicroStrategy uses a combination debt financing and opportunistic purchases to accumulate Bitcoin. Companies often buy when the price of Bitcoin declines, taking advantage of the opportunity to get the best price.

However, this strategy is not without criticism. Using debt to purchase volatile assets is considered risky. However, MicroStrategy still believes that Bitcoin's value will continue to increase in the long term.

4. Contribution to the New Financial System

MicroStrategy is not just about financial gain. They also want to be part of the transformation of the global financial system towards a more decentralized and secure model.

Conclusion

MicroStrategy is one of the boldest players in the Bitcoin investment world. Holding more than 200,000 BTC, the company is not only betting on the future of Bitcoin, but also leading a movement to change the way companies view reserve assets.

Will this strategy work? Let's just wait. It is clear that MicroStrategy has paved the way for a global discussion about Bitcoin's potential as a major financial asset. As pioneers, they have created a model that other companies have the potential to follow in the future.

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