Strategy recently celebrated the fifth anniversary of its first Bitcoin purchase. This initiative has led to a nearly 2600% surge in its stock price since 2020, breaking free from a 20-year slump.
The company made its first Bitcoin (BTC) purchase on August 11, 2020, acquiring 21,454 Bitcoins for $250 million, a move that founder Michael Saylor called a 'new capital allocation strategy.'
Since then, the company has spent a total of $46 billion to acquire 628,791 Bitcoins, making it the company with the largest Bitcoin holdings among all public and private companies, inspiring many others to follow its strategy.
These purchases have caused Strategy's stock to rise by 2595% over the past five years, closing above $395 last Friday, compared to less than $15 five years ago.
Today marks five years since we adopted the BTC strategy.
— Strategy (@Strategy) August 10, 2025
Strategy faced an accounting scandal
Strategy was founded by Saylor in 1989, focusing on business analytics software and consulting services. Although it thrived during the dot-com bubble, its stock price plummeted in 2000 due to an accounting scandal.
The SEC had previously sued the company and its executives for fraud; the latter did not admit wrongdoing but paid millions in fines.
Bitcoin helped Strategy's stock price recover
After the low point in the early 2000s, Strategy's stock price rebounded starting in 2010 due to the purchase of Bitcoin, with a significant increase in stock price after the first purchase in 2020.
Strategy's significant Bitcoin holdings cause its stock price to largely follow the cryptocurrency market, and since November 2024, the company's stock has surpassed its previous peak of $340.
The future direction of Strategy and Bitcoin
Saylor stated the company plans to raise $84 billion over the next two years to continue purchasing Bitcoin.
Strategy currently has unrealized gains of approximately $28.8 billion and is preparing to sell part of its holdings to pay off debt.
The company's most recent purchase of Bitcoin was on July 29, totaling 21,021 BTC.
Similar strategy announcements are typically accompanied by more Bitcoin purchase announcements.
