The company #Strategy marks five years since its first Bitcoin purchase - on August 11, 2020, it spent $250 million to acquire 21,454 $BTC . During this time, the company's stock has risen by 2,595%, from $15 to $395 per share.
Strategy, founded by Michael Saylor in 1989, originally dealt in selling business analytics software. The company was a star of the mid-1990s dot-com bubble - its stock peaked at $313 in March 2000.
However, a scandal erupted: Strategy admitted to inflating revenues for 1998 and 1999. The Securities and Exchange Commission (SEC) charged Saylor and other executives with fraud. The stock price fell by 60% in a day, and many consider this moment pivotal in the collapse of the dot-com bubble.
After settling the case without admission of guilt and paying multi-million dollar fines, Strategy's stock never recovered. For the next 20 years, it traded in the range of $10-20, sometimes falling below 50 cents.
Bitcoin as salvation
The purchase of Bitcoin changed everything. In the 12 months following the first acquisition, the stock price increased more than fourfold - to $70. Bitcoin then appreciated from $11,500 to $50,000.
In five years, Strategy has accumulated 628,791 BTC, spending a total of $46 billion. This is the largest corporate stash of Bitcoin in the world. The company's Bitcoin strategy has inspired other firms to follow suit.
Strategy's stock now literally follows Bitcoin's movements. On November 11, 2024, when Bitcoin first crossed the $80,000 mark, MSTR shares closed at $340 - surpassing the peak of 2000 for the first time in 24 years.
Plans for the future
In May, Saylor announced plans to raise $84 billion over the next two years to continue buying Bitcoin. The company is using various instruments - convertible bonds and stock sales.
Now, Strategy boasts unrealized gains of about $28.8 billion from Bitcoin investments, according to data from StrategyTracker. In regulatory filings, the company noted the possibility of selling assets to pay off several billion dollars in debt.
On Sunday, Saylor posted a chart of past Bitcoin purchases on social media X with the words: 'If you don't stop buying Bitcoin, you won't stop making money.' Such posts usually precede the announcement of new purchases. The last time the company acquired Bitcoin was on July 29. They bought 21,021 $BTC .
