The Bitcoin Treasury Playbook: How MicroStrategy became the world’s largest corporate Bitcoin holder

In the world of corporate Bitcoin investment, no company has been more aggressive—or more successful—than MicroStrategy.

UPDATE: MicroStrategy rebranded as Strategy following this article’s publication. Original story follows.

Companies launching Bitcoin treasuries are becoming increasingly mainstream, as they stake bold claims on the digital future and rewrite the playbook on corporate finance. In our series, The Bitcoin Treasury Playbook, we chart the journeys of the world’s largest corporate Bitcoin holders. In the first edition, we begin with the daddy of them all: MicroStrategy.

The Virginia-based business intelligence firm, led by Bitcoin evangelist Michael Saylor, has transformed its treasury strategy into one of the most closely watched plays in both traditional finance and the crypto industry. 

Since its first Bitcoin purchase in 2020, MicroStrategy has accumulated over 450,000 BTC, solidifying its position as the largest corporate holder of Bitcoin worldwide.

Observers have watched MicroStrategy invest its way to success, framing itself as a pioneering example for companies around the world. So, how did MicroStrategy do it?

A bold bet on Bitcoin

MicroStrategy’s pivot to Bitcoin began during the economic uncertainty of the COVID-19 pandemic. With central banks injecting liquidity into global markets, inflation concerns mounted. Saylor saw Bitcoin as the ultimate hedge against currency devaluation. Rather than holding cash reserves in a depreciating dollar, he advocated for converting the company’s idle funds into Bitcoin.

So in August 2020, MicroStrategy made its first major Bitcoin purchase—21,454 BTC for US$250 million. At the time, Wall Street staples saw this move as unorthodox; reckless, even.

But Saylor doubled down. By the end of 2020, the company had spent nearly US$1.1 billion on Bitcoin, acquiring 70,470 BTC in total.

As Bitcoin’s price surged, so did MicroStrategy’s conviction. The company adopted an aggressive strategy to continuously expand its holdings, leveraging a mix of corporate funds, debt instruments, and equity offerings to finance its purchases.

Funding the Bitcoin treasury

MicroStrategy has raised capital through multiple avenues to fund its Bitcoin buying spree. Initially tapping its own cash reserves, the company began looking into financial markets as demand for Bitcoin grew.

  • Convertible bonds: The company has issued billions in convertible senior notes, allowing investors to lend MicroStrategy money in exchange for the option to convert their debt into stock at a later date.
  • Senior secured notes: In 2021, MicroStrategy issued US$500 million in senior secured notes at a 6.125% interest rate, backed by the company’s Bitcoin holdings.
  • Equity issuances: The company has taken advantage of its soaring stock price by selling new shares through at-the-market (ATM) offerings, raising billions without taking on additional debt.

This financial engineering has enabled MicroStrategy to continue its Bitcoin accumulation without significantly affecting its core business operations.

The impact on MicroStrategy’s stock

While MicroStrategy’s primary business remains software and data analytics, its stock (MSTR) has increasingly behaved like a Bitcoin proxy. Since the company’s Bitcoin strategy began, its stock price has surged over 2,700%, mirroring Bitcoin’s gains.

The company’s market valuation is now closely tied to Bitcoin’s price movements, with institutional investors and retail traders alike treating MSTR shares as a way to gain indirect exposure to Bitcoin without directly holding the asset.

A blueprint for corporate Bitcoin adoption

MicroStrategy’s success has inspired other publicly traded companies to explore Bitcoin as a treasury asset. Firms like Marathon Digital Holdings, Tesla, and Coinbase have followed suit, with varying degrees of commitment.

Despite regulatory uncertainty, MicroStrategy’s unwavering stance on Bitcoin has positioned it as a leader in corporate crypto adoption. As the digital asset space matures, the company’s strategy is likely to become a case study for financial decision-makers considering Bitcoin as part of their corporate treasury management.

For companies looking to hedge against inflation, diversify reserves, or position themselves at the forefront of financial innovation, MicroStrategy’s approach serves as both a roadmap and a case study in bold, forward-thinking leadership.

For now, MicroStrategy remains the undisputed heavyweight in corporate Bitcoin investment—an unlikely pioneer that turned a bold bet into a financial revolution.

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