The latest Bloomberg report reveals that MicroStrategy's $26 billion bitcoin stash surpasses cash reserves of global leaders like IBM and Nike. This unique strategy enables the company to stay afloat in an unpredictable financial world.
MicroStrategy's Unique BTC Strategy
In 2020, co-founder and chairman Michael Saylor decided to invest in bitcoin as a hedge against inflation. MicroStrategy acquired 279,420 BTC, representing approximately 1.33% of the total supply. The company raises debt capital and uses it to purchase bitcoins, theorizing it can repay debt by selling less bitcoin in the future. Other companies are beginning to imitate this strategy.
MicroStrategy Shows No Signs Of Slowing Down
The company shows no signs of slowing down and has initiated the '21/21 Plan,' raising $42 billion to purchase more bitcoins. Experts note that the company's balance sheet is largely a function of bitcoin’s price, on which they ride as it may go up or down.
Impact of Bitcoin Run on MicroStrategy Shares
As bitcoin is anticipated to reach $100,000 within the next three months, MicroStrategy's stock is also expected to benefit from this surge. Wall Street analysts anticipate that MicroStrategy’s average stock price will reach $302.75 over the next 12 months.
MicroStrategy continues to surprise the market with its aggressive and innovative bitcoin strategy. With cryptocurrency prices on the rise, the company is poised for further growth and shareholder value creation.
