Five years ago, Strategy made an investment decision that completely changed its trajectory when it made its first Bitcoin purchase, contributing to a nearly 2,600% increase in its stock value since 2020, following a two-decade stagnation.
On August 11, 2020, the company – then known as MicroStrategy Inc. – made a $250 million investment to acquire 21,454 Bitcoins, in what its founder Michael Saylor described as a "new capital allocation strategy."
Since then, the company has spent a total of $46 billion to purchase 628,791 Bitcoins, making it the largest Bitcoin holder among public and private companies, inspiring many institutions to adopt the same approach. These massive purchases directly reflected on the company's stock price (MSTR), which jumped from less than $15 five years ago to over $395 recently.
From accounting scandal to strong comeback
Founded in 1989, Strategy rose to prominence in software and data analytics. During the dot-com bubble in the 1990s, it gained widespread fame, with its stock reaching $313 in March 2000, before crashing by over 60% in one day after a financial review revealed inflated revenues for 1998 and 1999.
This caused a wave of lawsuits and allegations from the U.S. Securities and Exchange Commission of fraud against the company and Saylor, ending in a settlement that involved paying millions of dollars without admitting guilt. Over the next twenty years, the stock continued to trade in the range of $10 to $20, sometimes falling to less than half a dollar.
Bitcoin changes the game
The big shift began in 2020 when the company aggressively entered the Bitcoin market, as its stock rose more than fourfold in one year, coinciding with the digital currency's rise from about $11,500 to $50,000. Thanks to its massive holdings, the stock's performance became directly linked to Bitcoin's volatility.
It took 24 years for the stock to surpass its historical peak in November 2024, when it closed at $340, the same day Bitcoin broke the $80,000 level for the first time.
Ongoing expansion plans
Last May, Saylor revealed a plan to raise $84 billion over the next two years to continue purchasing Bitcoin, through financing tools such as convertible bonds and stock issuances.
According to Strategy Tracker data, the company has unrealized gains estimated at $28.8 billion from its Bitcoin investments. Despite focusing on holding the currency, it has not ruled out selling part of its holdings to pay off existing debts.
In late July, the company announced its latest purchases by adding 21,021 new Bitcoins. Saylor wrote on platform X a famous phrase of his: "If you don't stop buying Bitcoin, you won't stop making money," which often signals new purchase announcements.
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