Recent financial developments have significantly benefited Michael Saylor, co-founder of MicroStrategy, as his net worth escalated by an impressive $700 million. This surge is attributed to a boost in his company’s stock value and the rise in Bitcoin‘s market price, after MicroStrategy expanded its Bitcoin holdings by an additional 3,000 units, totaling 193,000 Bitcoins.
Substantial Gains for Tech Mogul
MicroStrategy’s share value, which is closely tied to its Bitcoin investments, witnessed a 10% increase. This coincided with Bitcoin’s value jumping more than 40% within three days. Given Saylor’s 12% stake in MicroStrategy and a personal Bitcoin collection of 17,732, his fortunes rose from $2.27 billion to nearly $3 billion in this period.
Steadfast Belief in Bitcoin
Saylor, a staunch Bitcoin proponent and author of the 2023 book “What is Money?”, guided MicroStrategy in 2020 to embrace a Bitcoin-focused investment strategy to combat inflation and diversify the company’s cash reserves. Despite experiencing substantial unrealized losses during the cryptocurrency downturn, Saylor’s strategy remained to accumulate more Bitcoin, placing MicroStrategy as the leading corporate investor in the cryptocurrency.
Despite the substantial unrealized gains, MicroStrategy has no intention to sell its Bitcoin assets. Saylor regards Bitcoin as a long-term strategy, and the company’s CFO Andrew Kang reiterated their commitment to it during the recent quarterly earnings call, highlighting MicroStrategy’s status as the foremost corporate Bitcoin holder.
MicroStrategy’s investment strategy seems vindicated with Bitcoin’s price reaching its highest since November 2021. Bitcoin’s value, which had fallen to around $61,000 due to Coinbase app issues, climbed significantly, reaching $64,000 mid-week. This renewed interest in Bitcoin also reflects in the success of spot Bitcoin ETFs in the United States, surpassing MicroStrategy’s holdings and breaking trading volume records, indicating a growing institutional interest in the cryptocurrency sphere.