Key Points
- MicroStrategy’s Bitcoin holdings surpassed $26 billion, exceeding the cash reserves of Nike and IBM.
- MicroStrategy plans to acquire additional Bitcoins worth $42 billion over the next three years.
MicroStrategy has seen its Bitcoin holdings value surge to $26 billion. This occurred after the price of Bitcoin spiked to $90,000 last week.
This makes MicroStrategy one of the largest holders of Bitcoin, the world’s most significant cryptocurrency.
MicroStrategy’s Bitcoin Holdings
Michael Saylor, the executive chairman of MicroStrategy, stated in a recent post that their Bitcoin holdings now exceed the cash reserves of companies like Nike Inc. and IBM.
In terms of value, MicroStrategy’s Bitcoin holdings are comparable to ExxonMobil’s treasury. They also closely follow the reserves of Intel and General Motors, which stand at around $29 billion and $32 billion, respectively.
MicroStrategy made its first Bitcoin purchase in 2020, becoming the first company globally to hold Bitcoin. This move was subsequently emulated by other companies, including MetaPlanet and Tesla.
Over the past four years, MicroStrategy has continued to acquire Bitcoin. Currently, they hold 279,420 Bitcoins. Since their initial Bitcoin purchase, MicroStrategy’s shares have risen by 2,100%, from $15 to $340.
Future Bitcoin Acquisition Plans
MicroStrategy has announced plans to acquire an additional $42 billion worth of Bitcoin over the next three years. This acquisition plan, known as the 21/21 Plan, will be divided into annual purchases, with $10 billion slated for 2025, $14 billion for 2026, and $18 billion for 2027.
To finance these acquisitions, MicroStrategy is considering various financial options. These include securing $21 billion from equity and $21 billion from fixed-income securities. The funds raised will be used exclusively for Bitcoin acquisition, not for business expansion.
If these plans materialize, MicroStrategy is expected to own approximately 3% of the Bitcoin supply, or around 580,000 Bitcoins, in the next three years.
In October 2024, MicroStrategy purchased an additional 7,420 Bitcoins worth $458 million. The following month, they acquired over 27,200 Bitcoins, valued at $2 billion.
Bitcoin, the largest cryptocurrency by market capitalization, has seen trading volumes of around $43 billion in the past 24 hours.