Michael Saylor’s bold move to replace cash with Bitcoin on MicroStrategy Inc.’s balance sheet has transformed the software company into a financial giant. With approximately $26 billion in Bitcoin holdings, the Virginia-based firm now surpasses global heavyweights like IBM, Nike, and Johnson & Johnson in financial assets, according to Bloomberg data. Only a handful of companies, including Apple and Alphabet, hold more.
Saylor, MicroStrategy’s co-founder and chairman, adopted this strategy in 2020 as a hedge against inflation amid stagnant revenue growth. Initially funded by operating cash, the Bitcoin purchases later leveraged stock and convertible debt sales. MicroStrategy is now the largest publicly traded corporate holder of Bitcoin.
While traditionalists criticize the strategy, investors see it as a unique way to profit from Bitcoin’s rise without dealing with crypto exchanges or wallets. The company’s shares have surged over 2,500% since mid-2020, outpacing Bitcoin’s impressive 700% growth over the same period. Bitcoin hit a record $93,500 this week, further boosting MicroStrategy’s profile.
Unlike most corporate treasurers who use assets for dividends or buybacks, Saylor advocates a buy-and-hold approach, claiming it enhances shareholder value. The company’s proprietary performance metric, Bitcoin yield, shows a 26.4% increase year-to-date.
Saylor plans to raise $42 billion over the next three years to expand holdings, with no exit strategy in sight. Analysts view the approach as a game-changer, turning a defensive move into an opportunity for recurring value creation.