Michael Saylor’s journey with Bitcoin and his company’s transformation into what’s now called Strategy (formerly MicroStrategy) is a fascinating case study in corporate finance and cryptocurrency adoption.
Michael Saylor, a tech entrepreneur and MIT graduate, co-founded MicroStrategy in 1989 as a business intelligence software company. Over the decades, it became a modest success, but by 2020, Saylor began rethinking the company’s financial strategy amid concerns about inflation and the devaluation of cash reserves. His solution? Bitcoin.
n August 2020, MicroStrategy made its first Bitcoin purchase—$250 million worth—positioning it as a “treasury reserve asset.” Saylor argued that Bitcoin was a superior store of value compared to cash, which he famously called a “melting ice cube” due to inflation. This marked the beginning of an audacious pivot that would redefine the company.
Since that initial purchase, Strategy has pursued Bitcoin accumulation relentlessly:
- Total Holdings: As of March 30, 2025, Strategy owns 528,185 BTC, worth roughly $35.63 billion at current prices.
- Acquisition Cost: The average purchase price is $67,458 per Bitcoin, meaning the company is sitting on significant unrealized gains given Bitcoin’s recent price surge past $80,000.
- Funding: Strategy has financed these purchases through a mix of cash reserves, debt offerings (like convertible notes), and equity sales. For example, the latest $1.92 billion purchase in March 2025 was likely funded through a combination of these mechanisms, though exact details may still emerge.
Saylor’s playbook involves leveraging MicroStrategy’s corporate structure to borrow at low rates and invest in Bitcoin, betting on its long-term appreciation. This has turned Strategy into a quasi-Bitcoin ETF, with its stock price (ticker: MSTR) often tracking Bitcoin’s value more closely than its software business.
The March 2025 acquisition of 22,048 BTC for $1.92 billion reflects Saylor’s unwavering conviction. At $86,969 per Bitcoin, this buy came during a period of heightened market momentum, with Bitcoin hitting all-time highs. It’s a bold move, especially as some analysts question whether Strategy is over-leveraged—its debt load has ballooned to support these purchases. Yet, Saylor remains unfazed, often framing Bitcoin as “digital gold” and a hedge against economic uncertainty.
