#SaylorBTCPurchase In 2020, MicroStrategy had excess cash reserves and, instead of keeping them in cash or short-term investments, Saylor believed that Bitcoin represented a superior store of value.
Key Milestones in MicroStrategy's Bitcoin Accumulation
August 2020: MicroStrategy announced its first BTC purchase, acquiring 21,454 BTC for $250 million, becoming the first publicly traded company to hold Bitcoin as a primary treasury reserve asset.
Subsequent Purchases: The company continued to buy BTC in batches, often using convertible notes and other debt instruments to finance the purchases. Saylor frequently announced these acquisitions on Twitter and in SEC filings.
Ongoing Accumulation: By mid-2024, MicroStrategy had acquired over 190,000 BTC, worth billions of dollars depending on market prices. The company occasionally sold small amounts (for example, at the end of 2022) for tax optimization, but remained largely optimistic and long-term in its strategy.
Financing Strategy: Saylor used a combination of stock offerings, debt, and company cash flow to finance Bitcoin purchases, stating that Bitcoin was "digital gold" and a better long-term investment than traditional assets like bonds or real estate.
Impact and Significance
Institutional Legitimacy: Saylor's public and sustained support for Bitcoin helped legitimize the asset in the eyes of institutional investors and other corporations.
MicroStrategy Shares (MSTR): The company's shares became a proxy investment for Bitcoin exposure, with MSTR often closely reflecting BTC price movements.
