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“This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”
These were the words of CEO Michael Saylor following the announcement of MicroStrategy’s move to adopt a corporate bitcoin standard. First announced one year ago yesterday, on August 11, 2020, the move was the first of its kind and was a significant step in the history of bitcoin.
Looking back after one year, MicroStrategy stock has gained 452.92%, while the price of bitcoin has increased by 306.66%. One of the reasons for the outperformance in MSTR shares is the speculative attacks executed, by leveraging up the company balance sheet to acquire more bitcoin.
MSTR Denominated In BTC
In The Daily Dive #005, “Writing The Corporate Bitcoin Accumulation Playbook”, we covered the various ways that MicroStrategy has used its access to public capital markets to acquire more bitcoin:
- 08/11/20 – MicroStrategy Adopts Bitcoin As Primary Treasury Reserve Asset
- 08/11/20 – MicroStrategy Announces Commencement Of Modified Dutch Auction Tender Offer To Purchase Up To $250 Million Of Its Class A Common Stock
- 12/07/20 – MicroStrategy Announces Proposed Private Offering Of $400 Million Of Convertible Senior Notes
- 12/11/20 – MicroStrategy Completes $650 Million Offering Of 0.750% Convertible Senior Notes Due 2025
- 12/21/20 – MicroStrategy Announces Over $1B In Total Bitcoin Purchases in 2020
- 02/16/21 – MicroStrategy Announces Proposed Private Offering Of $600 Million Of Convertible Senior Notes
- 02/20/21 – MicroStrategy Completes $1.05 Billion Offering Of Convertible Senior Notes Due 2027 At 0% Coupon And 50% Conversion Premium With Bitcoin Use Of Proceeds
- 02/24/21 – MicroStrategy Acquires Additional 19,452 Bitcoins For $1.026 Billion
- 06/07/21 – MicroStrategy Announces Proposed Private Offering Of $400 Million Of Senior Secured Notes
- 06/14/21 – MicroStrategy Completes $500 Million Offering Of 6.125% Senior Secured Notes Due 2028 With Bitcoin Use Of Proceeds
- 06/14/21 – MicroStrategy Launches “At the Market” Securities Offering For Flexibility To Sell Up To $1 Billion Of Its Class A Common Stock Over Time
Saylor and MicroStrategy took a lot of heat in particular for the latest $500 million junk bond debt raise and subsequent bitcoin purchase, when the odds remain incredibly in favor of Saylor and MicroStrategy.
