MicroStrategy's Bitcoin Investment Gains 2,595% in 5 Years… A New Paradigm for Corporate Strategy
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Five years ago, MicroStrategy made a bold decision to invest in Bitcoin (BTC), and the company is now proving the fruits of that choice. Transforming into a strategic company, on August 11, 2020, under the leadership of founder Michael Saylor, they purchased 2,1454 BTC for $250 million (approximately 347.5 billion won).
At the time, incorporating Bitcoin into corporate asset management strategy was considered innovative, but this choice completely changed MicroStrategy's direction. Since then, the company has invested $4.6 billion (approximately 6.4 trillion won) to secure a total of 628,791 BTC, which is the largest Bitcoin holdings among all public and private companies worldwide.
This movement has become more than just a financial strategy and is now a symbolic turning point in the industry. Especially during the complex regulatory environment after the Trump presidency, MicroStrategy directly overcame uncertainty and achieved corporate growth. In fact, their stock price surged over 2,595% in the past five years, closing at $395 (approximately 549,000 won), which is incomparable to the level of trading below $15 (approximately 20,850 won) when they first adopted the Bitcoin strategy.
The industry evaluates this success story as a key opportunity that has prompted more listed companies to change their digital asset management and investment methods. The 'Bitcoin Capital Allocation Strategy' introduced by Michael Saylor is now being perceived as a survival strategy that could determine a company's existence, beyond a simple financial technique. MicroStrategy has escaped its sluggish stock price trend over the past 20 years and has established itself as a case that demonstrates the powerful potential of Bitcoin, the 'digital gold'.
Meanwhile, on August 10th, marking the 5th anniversary of their strategy adoption, MicroStrategy emphasized the significance of this strategy again through their official X (formerly Twitter) account with a commemorative image. Although Bitcoin's value remains at the center of controversy, the company's approach suggests that it could become a new standard of asset management, beyond simply holding cryptocurrency.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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