How MicroStrategy grew its $5B Bitcoin stash in 9 months

A MicroStrategy executive is pictured here raining in its Bitcoin stash.

MicroStrategy quietly reserved the right to sell some of its $5 billion Bitcoin stash in its latest earnings report.

The Virginian data intelligence firm posted $100 million profit last quarter — up over 15% year-on-year.

Led by Bitcoin bull Michael Saylor, the company has spent about $2.2 billion to acquire 91,579 BTC ($5 billion) since August.

  • MicroStrategy paid about $24,300 per BTC on average.
  • The company bought more than 30% of its total in December.
  • MicroStrategy is up 130% on its Bitcoin investment so far.

Bitcoin contributed zero to MicroStrategy’s profits, as the firm is yet to sell any crypto at all.

The company keeps just $82.5 million in cash and equivalents (up $23 million year-on-year).

MicroStrategy’s Bitcoin stash started with a quarter-billion

MicroStrategy boasts two corporate strategies: growing its analytics software business and acquiring Bitcoin to hold. 

Saylor seems to have been hooked on Bitcoin after selling a $30 million domain to Block.one in July 2020 — the firm behind crypto-powered cloud network EOS.

By August, MicroStrategy had spent $250 million on 21,454 BTC ($1.2 billion).

MicroStrategy’s share price peaked in early February, briefly pushing the value of its stock beyond its Bitcoin stash.

In September, Saylor claimed he bought Bitcoin to invest in something for 100 years.

Today, Bitcoin makes up 80% of MicroStrategy’s $6.5 billion market value — meaning Saylor’s NASDAQ-listed stock is mostly Bitcoin.

[Read more: HSBC snubs MicroStrategy stock after CEO buys too much Bitcoin]

Saylor embodies ‘strong hands’ better than most

Still, the company kept a small disclaimer in its earnings overnight that could hint to Bitcoin sales.

It reads: “In future periods, MicroStrategy may purchase additional Bitcoins and increase its overall holdings of Bitcoin, or sell its Bitcoins and decrease its overall holdings of Bitcoin.”

The note was also included MicroStrategy’s previous earning report.

In any case, another major stock with a Bitcoin stash on its balance sheet is Elon Musk’s Tesla.

Like Saylor, Musk claims to be ready to hold Bitcoin for a long time. However, Tesla recently sold 10% of its billion-dollar stash.

Musk said the move helped prove Bitcoin’s liquidity — a way to show the “true value” of the company’s crypto.

Edit 17:11 UTC, Apr 30: Clarified inclusion of sales disclaimer in MicroStrategy’s previous earnings in paragraph 13.

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