In August 2020, intelligence firm MicroStrategy made headlines with the surprise announcement that it would be investing over $250 million in Bitcoin. The Bitcoin purchase marked the first publicly traded company to boast of Bitcoin as part of its investment portfolio.
Since the announcement, the company’s stock has skyrocketed to a two-year high, with many analysts attributing the surge in stock prices to the company’s Bitcoin holdings. MicroStrategy’s stock has gained over 150% in the last six months, with the majority of the gains coming since the company’s purchase of Bitcoin.
The company has made multiple large purchases of Bitcoin since its initial purchase of 21,454 bitcoins in August, spending a total of $1.125 billion on bitcoin in 2020. According to the company’s 8-K filing with the SEC, the company has purchased an additional 16,796 bitcoins at an aggregate purchase price of $1.064 billion.
In light of its investment in Bitcoin, the company has also announced plans to launch a Bitcoin rewards program. Through the program, MicroStrategy will be offering its employees the option of receiving a portion of their salaries in Bitcoin. The program has been well received by the company’s employees and is the first of its kind for a publicly traded company.
Overall, MicroStrategy’s investment in Bitcoin has driven the company’s stock to two-year highs, and the company has become an example of the potential of Bitcoin as an investment asset. As the company continues to show success with its Bitcoin holdings, it is likely that other publicly traded companies will follow suit and begin investing in the digital asset as well.
