Bitcoin's soaring success has propelled Strategy's profits, yet it staunchly holds onto its Bitcoin, eschewing any sales.

MicroStrategy's Bitcoin Bet Paying Off

MicroStrategy, the business intelligence company led by CEO Michael Saylor, has made a significant move in the world of cryptocurrency. With a cumulative acquisition cost of around $44.6 billion, MicroStrategy has amassed a substantial Bitcoin reserve. This reserve, currently valued at over $77 billion, makes MicroStrategy one of the largest institutional holders of Bitcoin.

Saylor's commitment to Bitcoin is evident in MicroStrategy's sustained strategy of accumulating the cryptocurrency. He views Bitcoin as a strategic exit from the traditional financial system and a refuge for economic policy changes. This belief in Bitcoin's potential as a key strategic asset for preserving value and financial diversification is reflected in MicroStrategy's approach.

MicroStrategy's stock has grown nearly 2,600% since it first purchased significant amounts of Bitcoin five years ago. This growth is a testament to the strategic value that Saylor and MicroStrategy see in Bitcoin.

The maximum limit of Bitcoin units is 21 million, making it a scarce cryptocurrency. This scarcity, combined with Bitcoin's growing global acceptance and support from regulatory entities, including the White House, solidifies its position as a global asset.

In addition to MicroStrategy, around 148 public firms are adopting the model of maintaining Bitcoin on their balance sheets as a strategic asset. These companies, including US-based MicroStrategy (with approximately 629,376 BTC) and Metaplanet Inc. in Tokyo (with about 18,888 BTC), are holding their Bitcoin reserves despite significant gains. This strategic approach suggests a long-term commitment to Bitcoin rather than short-term gains.

Saylor's commitment to Bitcoin is further underscored by his projection that each Bitcoin unit could be worth around $21 million by the year 2046. His famous phrase, "Sell a kidney if you have to, but keep the Bitcoin," expresses his commitment to Bitcoin as a long-term investment.

Despite the unrealized gains from Bitcoin accumulation totaling over $31 billion, MicroStrategy continues to accumulate Bitcoin through various financial instruments, such as preferred stock offerings and debt issuance.

The strong rally this year has significantly increased the market value of MicroStrategy's holdings. On August 13, the price of Bitcoin reached a new all-time high of $124,457, boosting MicroStrategy's Bitcoin reserves. As of a recent post, MicroStrategy's Bitcoin holdings closed at a record high of $77.2 billion.

Bitcoin's ability to function as a refuge that preserves value against inflation and its role in the advancement towards the digitalization of money suggest its potential to become a fundamental component of the global financial system. As MicroStrategy continues to hold and accumulate Bitcoin, it is clear that the company sees Bitcoin as a financial refuge and a true store of value.