A rollercoaster of a journey is the most appropriate description for the MicroStrategy‘s daring and risky BTC investment adventure. A year has passed since Michael Saylor traded his CEO seat for the executive chairman’s chair. The purpose was singular: pouring the company’s cash into Bitcoin, the world’s renowned cryptocurrency. Recollections are still fresh when Bitcoin tumbled to a miserly $23,000, biting off a whopping billion dollars off Saylor’s books, magnitudes lower than the firm’s average purchase price of $30,664 per Bitcoin.
The future for MicroStrategy darkened further when the crypto exchange FTX fell flat, dragging Bitcoin to depressingly low figures of $16,000. Shivers ran down the spines of Wall Street credit analysts who scrambled to assess the impending distress at MicroStrategy. Saylor’s strategy appeared on the brink of failure – seemingly a decision taken too far.
But as they say, time heals. Bitcoin’s fortunes improved, dramatically rebounding to over $29,000. Quick to take advantage of the respite, Saylor doubled down, augmenting the firm’s stash from 129,699 to 152,800 bitcoins. Consequently, the average cost diminished to $29,672. The company’s stock price improved in a corresponding fashion, climbing to $390 from a low of $270 a year ago. A remaining dip from the 2021 high does exist, but the rebound is encouraging nonetheless.
Interestingly, the gains of MicroStrategy’s share price outdo those of powerhouse tech companies like Google parent Alphabet, Apple, and Microsoft since Saylor adopted the Bitcoin buying strategy. Ahead of his second anniversary exit from the operational role at MicroStrategy, signs reveal that the company is not putting the brakes on its Bitcoin buying spree anytime soon, reinforced by the recent announcement of a $750 million share sale, partly devoted to the purchase of more cryptocurrency.
In an additional and somewhat surprising move, Saylor demonstrated his confidence in the crypto world by integrating the Lightning Network, a system designed to expedite Bitcoin transactions, into his corporate email address – a bold show of the new protocol’s simplicity and potential, despite its non-reliance on any donations.
The future might still be a murky mix of promises and uncertainties but Saylor remains unfazed. In response to the sceptical remark about Bitcoin still stuck at $30,000, the executive replied: “Zoom out.” What may seem like a price stagnation today could be a monumental step forward considering the humble beginnings of Bitcoin trading at a slightly higher value of $10,000 three years ago. His final words were: “We’re glad we adopted bitcoin.”
Source: Coindesk
