MicroStrategy’s $26 billion in Bitcoin exceeds Nike and IBM cash

by

As a seasoned analyst with over two decades of experience in the financial markets, I must admit that MicroStrategy’s Bitcoin strategy has caught my attention. The company’s bold move to invest heavily in Bitcoin, even before it was mainstream among corporations, sets it apart from many other companies.

In simpler terms, MicroStrategy now holds approximately $26 billion worth of Bitcoin following its recent surge to around $90,000. This amount exceeds the cash reserves held by well-known corporations such as Nike and IBM.

As a crypto investor, I’m thrilled to share that the global leader in cryptocurrencies, Bitcoin, surged by an impressive 11% to reach a new high of $90,000 last week. This remarkable rise has significantly boosted MicroStrategy’s Bitcoin holdings, making them one of the largest corporate investors in Bitcoin with a staggering valuation of approximately $26 billion.

As a crypto investor, I found it fascinating when MicroStrategy’s executive chairman, Michael Saylor, shared on his recent post-Nov. 17 update that the worth of our Bitcoin holdings surpasses the cash reserves of notable corporations like Nike Inc. and International Business Machine (IBM) Corp. This news not only validates the potential of cryptocurrencies but also underscores the strategic shift towards digital assets by forward-thinking organizations.

Speaking comparatively, MicroStrategy’s Bitcoin holdings are similar in worth to ExxonMobil’s cash reserves. The value of MicroStrategy’s Bitcoin reserve comes close to the treasuries of Intel and General Motors, which stand at approximately $29 billion and $32 billion respectively.

In my role as a researcher, I found that back in 2020, our company pioneered the way by acquiring Bitcoin, making us the first global entity to do so. This bold move was subsequently echoed by other companies like MetaPlanet and Tesla.

Over the last four years, they have amassed approximately 279,420 Bitcoins through various acquisitions. Since their initial purchase of Bitcoin, MicroStrategy’s share price has surged significantly, rising from $15 to $340 and increasing by 2.100%.

MicroStrategy aims to acquire more Bitcoin

MicroStrategy intends to purchase approximately $42 billion in Bitcoin over the next three years as part of their “21/21 Plan.” This means they will allocate $10 billion each year: $10 billion in 2025, $14 billion in 2026, and $18 billion in 2027.

As a researcher, I’m delving into the strategic plans that we’re considering, which involve seeking substantial funds to fuel our endeavors. To achieve this, we aim to secure approximately $42 billion in total – $21 billion from equity and an equivalent amount from fixed-income securities. This financial influx will be earmarked solely for the purpose of procuring more Bitcoin. Expanding our business is not the immediate priority with these funds, but rather, the focus lies on expanding our digital asset portfolio.

Should the financing materialize, MicroStrategy anticipates controlling around 3% of all existing Bitcoins, which amounts to roughly 580,000 coins within the subsequent three years.

In October 2024, MicroStrategy purchased approximately 7,420 Bitcoins valued at around $458 million. The subsequent month saw the company acquiring over 27,200 additional Bitcoins, equating to a value of roughly $2 billion.

In the last day, Bitcoin, the global leader among cryptocurrencies regarding market value, has seen trading volumes close to $43 billion.

Read More

2024-11-18 09:44