MicroStrategy CEO Michael Saylor announced on September 20 that it purchased another 7,420 bitcoins for approximately $489 million. The company now holds over 252,000 bitcoin, acquired for $9.9 billion.
Since 2020, MicroStrategy has adopted a Bitcoin-focused business strategy, leveraging Bitcoin’s potential as an inflation hedge and store of value. The company has accumulated over 252,000 bitcoins worth over $15 billion, significantly increasing shareholder value.
MicroStrategy borrowed money by issuing convertible senior notes to finance its Bitcoin purchases. Recently, more than $1 billion was raised via note offerings, in part to acquire more Bitcoin. Other publicly traded companies have emulated this “buy Bitcoin” business strategy to profit from Bitcoin’s growth.
MicroStrategy’s Bitcoin Treasury purchases are like a large-scale “speculative attack” on fiat currencies. By exchanging fiat for scarce bitcoin when it’s undervalued, the company could reap huge returns if bitcoin continues to rise as a global digital store of value.
The company is undertaking the largest speculative challenge to fiat currency in history by adding the most resilient assets to its treasury. Other publicly traded companies are beginning to emulate MicroStrategy by implementing Bitcoin treasury strategies and gaining Bitcoin exposure on their balance sheets.