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Reading: MicroStrategy’s Bitcoin Holdings Now Worth $26 Billion, Outpacing Nike and IBM Cash Reserves
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Reading: MicroStrategy’s Bitcoin Holdings Now Worth $26 Billion, Outpacing Nike and IBM Cash Reserves
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MicroStrategy’s Bitcoin Holdings Now Worth $26 Billion, Outpacing Nike and IBM Cash Reserves

Toby
By Toby November 18, 2024 598 Views
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MicroStrategy’s Bitcoin Holdings Now Worth $26 Billion, Outpacing Nike and IBM Cash Reserves
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  • MicroStrategy’s Bitcoin reserve hits $26 billion after BTC surges to $90,000.
  • The crypto giant now holds more value in Bitcoin than Nike and IBM’s cash reserves.
  • Its bold Bitcoin strategy has driven a 2,100% surge in its stock price since 2020.
  • Future plans include acquiring $42 billion more in Bitcoin, aiming for 3% of its total supply.

MicroStrategy, the business intelligence firm that went all-in on Bitcoin in 2020, is now reaping the rewards of its bold strategy. 

Contents
MicroStrategy’s Bitcoin Bet: A Game-ChangerHow Bitcoin Transformed MicroStrategyThe 21/21 Plan: $42 Billion More in BitcoinAggressive Accumulation ContinuesThe Bigger Picture

With Bitcoin’s price soaring to $90,000 last week, the company’s holdings have skyrocketed to a staggering $26 billion — a reserve larger than the cash on hand for household names like Nike and IBM.

MicroStrategy’s Bitcoin Bet: A Game-Changer

When Michael Saylor, MicroStrategy’s executive chairman, made the call to invest heavily in Bitcoin, it was a controversial move. Today, it’s a testament to vision and risk-taking. 

https://twitter.com/saylor/status/1857841213623382051

With 279,420 Bitcoin in its reserves, MicroStrategy is the world’s largest corporate Bitcoin holder. To put things into perspective, the company’s Bitcoin stash is now comparable to ExxonMobil’s cash reserves and only slightly behind Intel and General Motors.

Saylor didn’t shy away from celebrating the milestone, sharing on X (formerly Twitter), “Our Bitcoin reserves have surpassed the cash holdings of companies like Nike and IBM. This is just the beginning.”

How Bitcoin Transformed MicroStrategy

MicroStrategy’s Bitcoin-focused strategy hasn’t just grown its reserves; it’s also supercharged the company’s stock price. Since its first Bitcoin acquisition in 2020, MicroStrategy’s stock has surged over 2,100%, climbing from $15 to $340. 

What started as a bold experiment has turned into a defining aspect of the company’s identity, drawing in crypto enthusiasts and institutional investors alike.

The 21/21 Plan: $42 Billion More in Bitcoin

MicroStrategy isn’t stopping at $26 billion. The company recently unveiled an ambitious plan to purchase $42 billion more Bitcoin by 2027 under its “21/21 Plan.” 

This initiative will see the company allocate $10 billion in 2025, $14 billion in 2026, and $18 billion in 2027 to Bitcoin acquisitions. If successful, MicroStrategy would control approximately 580,000 Bitcoin — roughly 3% of the cryptocurrency’s total supply.

To fund this massive undertaking, the company plans to tap into equity and fixed-income securities, allocating $21 billion to each source. Unlike traditional firms that might focus on business expansion, MicroStrategy is doubling down on Bitcoin as its primary growth strategy.

Aggressive Accumulation Continues

In October 2024 alone, MicroStrategy added 7,420 Bitcoin to its reserves, worth $458 million. Just a month later, it purchased another 27,200 Bitcoin for $2 billion. These moves underscore the company’s unwavering belief in Bitcoin’s long-term potential.

The Bigger Picture

Bitcoin, the world’s largest cryptocurrency, remains the cornerstone of the digital asset market, with a 24-hour trading volume of $43 billion. For MicroStrategy, this isn’t just about riding the wave — it’s about leading it.

By embracing Bitcoin at a scale that few can match, MicroStrategy is reshaping what’s possible for corporate treasury strategies. As Bitcoin inches closer to mainstream financial systems, the company’s bold bets are paving the way for other businesses to follow suit.

For Michael Saylor and his team, the journey is far from over. As they continue to acquire more Bitcoin, one thing is clear: MicroStrategy isn’t just playing the crypto game — it’s rewriting the rules.

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Last Updated on November 18, 2024 by Toby