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Microstrategy's Bitcoin Focused Shareholder Letter

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Last week, Microstrategy's CEO, Michael Saylor, addressed the company's shareholders with enthusiasm about the multibillion-dollar Bitcoin treasury strategy in the most recent investor letter released Thursday. 

“Our parallel strategy to acquire and hold bitcoin has been a tremendous success. We will continue to vigorously pursue both strategies…”

The enthusiasm and sense of victory didn't come without trials and tribulations. The adversity during the past years from the ongoing global pandemic is what ultimately led to the decision behind Microstrategy's Bitcoin strategy. In addition to growing the enterprise-level analytics software business, the company will continue to develop their Bitcoin strategy.

Microstrategy continues to deliver new features and capabilities to raise the bar and expand what is possible in their industry. They believe that they are well-positioned to benefit from the growing trend that enterprises are choosing to buy rather than build proprietary analytics software into their products.

In the eyes of the capital markets, Microstrategy is fundamentally distinguished from conventional analytics software competitors because of its Bitcoin treasury strategy. They are among the publicly traded early adopters including Tesla and Block.

“Adopting bitcoin as our primary treasury reserve asset sets us apart from conventional competitors and elevated our brand,”. MicroStrategy has been implementing a Bitcoin strategy for nearly two years and has become increasingly creative. 

What initially started as an attempt at saving the purchasing power of their cash reserves eventually transitioned into a more elaborate Bitcoin strategy. Furthering their strategy of simply acquiring bitcoin with cash flow to eventually using the proceeds of debt and equity transactions to acquire additional Bitcoin. They will also continue to increase the awareness of their Bitcoin strategy through various channels and set precedence for other companies to do the same. 

MicroStrategy has the largest balance sheet of Bitcoin on Wall Street and will likely remain one of the largest holders of Bitcoin as their strategy seems to make everyone within the company happy. MicroStrategy spent $3.97 billion to acquire 129,218 bitcoin for an average price of $30,700 for each Bitcoin


 

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