Now, MicroStrategy is one of the most crucial institutions in crypto, but it didn’t start out that way. The firm, co-founded by Michael Saylor—one of the most important figures in the world of Bitcoin—first made its mark in technology.
However, it is best known for its extreme technique of acquiring Bitcoin for its business reserves right now, with Saylor serving as a crucial figurehead for the organisational adoption of the asset.
What else do you need to understand about MicroStrategy and its connection with Bitcoin?
What is MicroStrategy?
Before adding Bitcoin to its stability plate, MicroStrategy was best known for its business intelligence software, which made it possible for companies to evaluate data more quickly for better decision-making.
Founded in 1989 by Michael Saylor, MicroStrategy immediately became prosperous, going public and dealing on the NASDAQ in 1998 as MSTR. However, just two years later, Saylor and two other senior MicroStrategy executives were required to settle a lawsuit against the SEC, alleging the business had” substantially overstated income and profits from the sales of software and data solutions.”
MSTR traded in a small range for the next 20 years before making a significant upwards movement at the end of 2020, the same year it made its first Cryptocurrency purchase announcement.
MicroStrategy’s Bitcoin government supply
MicroStrategy made a ground-breaking shift in 2020: it decided to make Bitcoin its main government supply. Saylor was in charge of the company’s first purchase of$ 250 million in Bitcoin as a hedge against economic uncertainty because the United States dollar and fiat currency were both devalued as a result of inflation.
” This purchase reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a reliable store of value and an interesting investment property with more long-term understanding probable than holding cash”, he said at the moment.
Over time, the company’s approach to getting Bitcoin has changed and it now focuses primarily on using the sales of foldable notes to raise money to buy more Bitcoin. In other words, MicroStrategy makes use of foldable notes to raise short-term debts that ultimately enable investors to purchase the stock of MicroStrategy. Therefore, using the proceeds from the sale of the documents to purchase Bitcoin, it follows.
Another publicly traded companies, including MARA and Riot Systems, have finally adopted this approach. Saylor compared this approach to the development of Manhattan real property in December, quoting Saylor as saying,” Every occasion Manhattan real estate increases in value, they issue more debt to develop more actual property.”
The company now refers to itself as the” World’s First and Largest Bitcoin Treasury Company” on its investor relations page as the” World’s First and Largest Bitcoin Treasury Company” as the company’s increasingly closely connected with Bitcoin relationship grows.
Michael Saylor, Bitcoin bulls
Even though Michael Saylor is then voicing Bitcoin’s most passionate opinions, he wasn’t always a Crypto pro.
Saylor stated on Twitter that” #Bitcoin days are numbered” only seven years before his company decided to use the crypto as its primary supply. It appears as though it will only take a few more years before it experiences the same death as online gambling.
# Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy.
— Michael Saylor⚡ ️ ( @saylor ) September 18, 2020
Saylor has since turned the tables, claiming Bitcoin is the best long-term asset to have while swearing to “buy the top forever,” referring to the practice of buying the asset continuously at its highest prices, which MicroStrategy does.
Saylor believes that means that he might be setting himself a price target for the property over the next 21 years, which means he may be buying Bitcoin at$ 13 million because he anticipates that the asset will account for more of the world’s total capital.
The circumstance against MicroStrategy’s Bitcoin supply
Analysts and the media in the area have been questioning MicroStrategy’s continual acquisitions of Bitcoin through the sale of debts. Sherwood Media, which is supported by Robinhood, highlighted the “math problem” in November 2024, with MSTR having a hold value of three times the amount of BTC and the possibility of forced foreclosures.
These notions have also permeated the wider crypto area, with previously optimistic Citron Research taking a small place in November 2024 by betting on MSTR’s share price to drop.
Citron’s documents suggest MSTR is “overheated” and no longer required to get coverage to Bitcoin opportunities.
If the MSTR share price falls enough, MicroStrategy could be forced to sell Bitcoin to repay more than$ 4 billion in convertible notes, “effectively reversing its ‘ perpetual motion machine’… which would further decrease Bitcoin’s price”, according to Sherwood Media.
The future of Dashboard
Other companies have adopted MicroStrategy’s Bitcoin supply approach, including Chinese firm Metaplanet and American crypto company Matador Technologies.
MicroStrategy has continued to make regular Cryptocurrency payments, but the company announced in October that it has no intention of slowing down. At the time, MicroStrategy announced plans to raise up to$ 42 billion to increase its balance sheet in order to add even more of the most popular bitcoin property.
The company, which owns nearly$ 46 billion worth of Bitcoin as of January 2025, is up more than$ 17 billion on its purchases lifetime according to data from SaylorTracker.
Even more impressive are Saylor’s interests for MicroStrategy than adding significant Bitcoin deposits to the company’s balance sheet. In October 2024, he outlined his vision for MicroStrategy to advance into a” Bitcoin bank” with a trillion-dollar assessment, creating money market tools tied to Bitcoin that can be offered to buyers.
Saylor and organization are then pitching another significant publicly traded companies in addition to bolstering their own investments. He told the Microsoft board in December 2024 that they could potentially add$ 5 trillion in value by adopting Bitcoin. They voted against including it on their balance sheet for the time being.
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