MicroStrategy Bitcoin Stash Surpasses IBM, Nike in Major Milestone

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As a researcher who has been closely monitoring the financial markets for the past two decades, I must admit that MicroStrategy’s bold Bitcoin strategy has left me both astounded and intrigued. The sheer audacity of this company to outmaneuver corporate giants like IBM and Nike in terms of Bitcoin holdings is nothing short of remarkable.

In a recent tweet, the world’s leading Bitcoin Treasury firm, MicroStrategy, has once again turned heads in the financial sector. As reported by its co-founder and chairman, Michael Saylor, MicroStrategy’s Bitcoin assets, currently valued at around $26 billion, outstrip the cash reserves of international corporate titans such as IBM and Nike.

MicroStrategy’s $26 Billion #Bitcoin Cache Is Larger Than IBM, Nike Cash Holdings

— Michael Saylor⚡️ (@saylor) November 16, 2024

Starting from the year 2020, MicroStrategy has adopted a bold approach to acquiring Bitcoin, designating it as their main treasury reserve asset. As of November 10th, MicroStrategy owns about 279,420 Bitcoins that they’ve purchased for a total cost of around $11.9 billion and an average price per Bitcoin of approximately $42,692, including related fees and expenses.

As reported by Bloomberg, this Bitcoin reserve boasts a value of nearly $26 billion, which surpasses the combined cash and marketable securities held by major global companies such as International Business Machines Corp., Nike Inc., and Johnson & Johnson. Only around a dozen corporations, like Apple Inc. and Alphabet Inc., possess greater assets within their corporate holdings.

MicroStrategy shares surge 2,500%

MicroStrategy’s stocks have surged more than 2,500% due to Bitcoin’s impressive growth of over 700% since mid-2020, making it the top-performing U.S. stock during this timeframe. Last Wednesday, Bitcoin reached a new high of approximately $93,500.

MicroStrategy devised a unique measure called ‘Bitcoin Yield’, calculating the percentage difference in the ratio of their Bitcoin assets against potential future shares over successive periods. As of now, this year’s yield stands at approximately 26.4%.

In 2020, Saylor opted to buy Bitcoin as a means to protect against inflation since MicroStrategy’s revenue growth started to decelerate. Initially, they used cash from their operations for these purchases, but later resorted to using funds raised through stock issuance and sales, along with convertible debt offerings, to amplify their purchasing power. Now, the company is recognized as the largest publicly traded corporate owner of Bitcoin.

MicroStrategy is intensifying its investment approach towards Bitcoin, planning to garner approximately $42 billion within the next three years for further Bitcoin purchases.

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2024-11-17 17:28