MicroStrategy Owns Over 1% of Bitcoin, Betting Big on Crypto

MicroStrategy has turned heads in the financial world by diving deep into bitcoin, showing a lot of folks are starting to really believe in digital money.

by Faruk Imamovic
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MicroStrategy Owns Over 1% of Bitcoin, Betting Big on Crypto
© Getty Images/Marco Bello

MicroStrategy has turned heads in the financial world by diving deep into bitcoin, showing a lot of folks are starting to really believe in digital money. Back in August 2020, they started picking up bitcoin, and now they've grabbed more than 1% of all the bitcoin out there.

That's a pretty big deal in the crypto world.

Building Up the Bitcoin Stash

It all kicked off when MicroStrategy decided to buy 21,454 bitcoins for a cool $250 million. That was just the beginning. Now, they're sitting on 214,246 bitcoins worth an eye-popping $13.46 billion.

That means they own a bit more than 1% of all the 19.7 million bitcoins floating around, which is a hefty slice of the pie. They didn't stop there. Between March 11 and March 18, they scooped up another 9,245 bitcoins for $623 million, according to the folks at the SEC.

MicroStrategy is all-in on bitcoin, betting big that its value and importance are only going to go up.

Bitcoin Versus Gold: The Investment Showdown

Michael Saylor, the guy who helped start MicroStrategy and a big cheerleader for bitcoin, has been pushing the company to invest heavily in crypto.

He's been saying that bitcoin is going to outshine gold, the old-school favorite for safe investments. It looks like his strategy might be working. MicroStrategy's value has shot up by about 380% over the last year, thanks in part to bitcoin's own rocket ride increasing by more than 150%.

What's Next for Bitcoin and MicroStrategy?

The total number of bitcoins that can ever exist is locked at 21 million, a limit set by bitcoin's creator, Satoshi Nakamoto. There's an event coming up in April that's going to make bitcoins even rarer, which could pump up their value even more.

Every time this "halving" happens, bitcoin's price tends to skyrocket in the following year. MicroStrategy's recent bitcoin buys, with an average cost of $67,382 each, show they're still bullish on bitcoin's climb. Considering their entire stash was bought at an average price of $35,160 per bitcoin, MicroStrategy is looking at some potentially huge gains as the world of digital currency keeps evolving.

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