HomeBusinessBillionaire Michael Saylor's company just purchased this popular cryptocurrency

Billionaire Michael Saylor’s company just purchased this popular cryptocurrency

Bitcoin‘S (CRYPTO: BTC) The price has more than doubled this year and is currently hovering near all-time highs. Some investors may be wary of chasing that rally, but one of Bitcoin’s biggest bulls is MicroStrategy‘S (NASDAQ:MSTR) billionaire executive chairman Michael Saylor isn’t budging.

Under Saylor’s leadership, MicroStrategy purchased its first $250 million worth of Bitcoin in 2020. By November 10, 2024, its holdings had grown to 279,420 Bitcoins with a total purchase price of $11.9 billion and a market value of $24.5 billion.

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MicroStrategy’s Bitcoin portfolio is equal to about a third of the company’s enterprise value of $73.3 billion, and about 1.4% of Bitcoin’s market cap of $1.8 trillion. And it has continued to buy more Bitcoin even as its price has soared. From October 31 to November 10, it bought an additional 27,200 Bitcoins for a total of $2.03 billion, at an average price of $74,463. So why is this enterprise software company still so bullish on Bitcoin?

Image source: Getty Images.

Saylor believes Bitcoin’s price will reach $100,000 by the end of 2024 and eventually rise to $13 million over the next 21 years. That sky-high price target would mean a gain of almost 15,000% compared to the current price. In a CNBC interview, Saylor predicted that Bitcoin will eventually grow from 0.1% of the world’s capital to 7% as more financial institutions choose to offer Bitcoin-related services. He also expects that the crypto will eventually trade in higher volumes than the cryptocurrency S&P500on the assumption that it will convince investors with its open, global and free approach to capital markets.

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Most of Saylor’s net worth is directly tied to the price of Bitcoin. He directly owns 17,732 Bitcoins with a market value of $1.6 billion. That’s almost a fifth of his estimated net worth of $8.3 billion. Another $6.5 billion of that total comes from its 9.9% stake in MicroStrategy, which is valued primarily for its Bitcoin holdings rather than its enterprise software business.

MicroStrategy’s transformation into a Bitcoin hoarder was abrupt. Before 2020, most investors knew the company as a slow-growing provider of data mining and analytics software. From 2013 to 2023, its annual revenue fell from $576 million to $496 million as it struggled to keep pace with faster-growing cloud competitors like Microsoft And Salesforce. To offset that pressure, Saylor focused the company on Bitcoin.

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