- Strategy’s Bitcoin accumulation has helped its stock climb over 2,500 percent since its initial investment in August 2020.
- Bitcoin’s price has risen more than 700 percent since Strategy first entered the market, now holding $44.3 billion in BTC.
- Inspired by Strategy’s success, multiple corporations are converting part of their cash or debt into Bitcoin amid rising institutional demand.
Strategy, formerly MicroStrategy, has seen a massive 2,500 percent rise in its stock since initiating a Bitcoin investment strategy in 2020. The move began with a $250 million Bitcoin purchase when the asset was valued near $11,000. As of this week, Bitcoin trades at approximately $87,923, reflecting a 700 percent increase since the company’s initial buy-in.
Michael Saylor, Strategy’s co-founder and chairman, led the shift in corporate treasury management, using Bitcoin as a hedge against inflation. His approach has since influenced numerous corporations, funds, and even government strategies. The company now holds nearly $44.3 billion in Bitcoin, following its latest acquisition of $584.1 million worth of BTC.
Strategy Raises Capital for Continued Bitcoin Purchases
To finance ongoing Bitcoin acquisitions, Strategy recently raised over $700 million through the sale of perpetual preferred stock. The raised capital allowed the firm to increase its crypto holdings, continuing a pattern of regular purchases seen since October 2024.
Inspired by Strategy’s performance, various companies have begun adopting similar approaches. GameStop announced its decision to add Bitcoin to its reserves. Bitcoin mining companies like MARA Holdings and Riot Platforms, along with Coinbase Global, are acting as de facto Bitcoin proxies in public markets.
More U.S. institutions have begun investing their attention in Bitcoin after its meteoric rise during the previous year, while debating the creation of Bitcoin strategic reserves. Introduction to Bitcoin by Strategy played an essential role in establishing cryptocurrency as a legitimate corporate asset.
