MicroStrategy’s Five-Year Bitcoin Bet Delivers 2,600% Stock Surge
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Michael Saylor’s bold move turns stagnant shares into one of Wall Street’s most talked-about plays
Five years ago, MicroStrategy—now operating under the name Strategy—made a decision that would redefine its corporate trajectory. On August 11, 2020, the business intelligence firm announced it had acquired 21,454 Bitcoin for $250 million, introducing what founder Michael Saylor described as a new capital allocation strategy.
Today, that gamble is paying off in extraordinary fashion. Since that first purchase, the company has amassed 628,791 BTC at a total cost of $46 billion, making it the largest Bitcoin holder among publicly traded firms. Its stock price has surged nearly 2,600%, climbing from under $15 in 2020 to more than $395, marking one of the most dramatic corporate turnarounds in recent memory.
“Bitcoin transformed our balance sheet, our brand, and our trajectory,” Saylor has said, often framing the asset as digital gold for the 21st century.
Founded in 1989, MicroStrategy was once a high-flyer of the dot-com boom. Shares peaked at $313 in March 2000 before collapsing after an accounting scandal led to regulatory charges and steep fines. For the next two decades, its stock languished, rarely breaking above $20.
The pivot to Bitcoin in 2020 marked a decisive break from stagnation, as cryptocurrency’s meteoric rise pushed the company’s valuation to levels unseen in 24 years.
Bitcoin as the Growth Engine
Strategy’s share price now moves largely in sync with Bitcoin’s volatility. The company recently disclosed an unrealized profit of $28.8 billion on its holdings and has outlined plans to raise $84 billion over the next two years—primarily to buy more Bitcoin.
Its most recent acquisition came on July 29, when it added 21,021 BTC to its reserves. Market watchers say each purchase announcement tends to coincide with renewed investor enthusiasm.
“If you don’t stop buying Bitcoin, you won’t stop making money,” Saylor posted on social media, hinting at further acquisitions.
With Bitcoin trading above $122,000, Strategy’s long-term conviction appears stronger than ever. Analysts note that as long as the cryptocurrency market remains bullish, the company’s high-risk, high-reward approach could continue to deliver outsized returns.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
