MicroStrategy And Michael Saylor Purchase $155 Million Of BTC In February

MicroStrategy Inc. MSTR  and its Chairman Michael Saylor recently disclosed their Bitcoin purchases for February, which totaled around 3,000 tokens for $155.4 million.

The purchases were part of a slew of buys that MicroStrategy has made over the past several years. Saylor began purchasing Bitcoin in 2020 to hedge against the high inflation at the time as well as an alternative to holding cash. 

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Last week, Saylor went on Bloomberg TV and stated that there is "no reason to sell the winner and buy the losers" regarding to the company's Bitcoin reserves.

Saylor's gamble on Bitcoin has paid off. The cost basis for the entire position is around $31,544. This is well below the current Bitcoin price of nearly $55,000. Additionally, since MicroStrategy and Saylor started buying Bitcoin in 2020, the price is up over 450%. Saylor's investment has outperformed most other asset classes and has allowed MicroStrategy's stock to perform well, appreciating over 460% in the past five years. 

The Securities and Exchange Commission (SEC) filing detailing the Bitcoin buys and current position was released on Feb. 26. On the day, MicroStrategy stock was up 15.86%, one of the best days in the history of the company. 

Additionally, the price of Bitcoin was up more than 5% on the day, nearing the $55,000 level. The price of Bitcoin has not traded this high since late 2021 when it was coming off of all-time highs. 

MicroStrategy owns around 193,000 Bitcoins, worth over $10.5 billion based on current prices. This makes it one of the largest Bitcoin holders in the world. 

In last week's interview with Bloomberg, Saylor also discussed the recent Bitcoin exchange-traded fund (ETF) approvals, saying that "spot ETFs have opened up a gateway for institutional capital to flow into the Bitcoin ecosystem. They are facilitating the digital transformation of capital, and every day hundreds of millions of dollars of capital is flowing from the traditional analog ecosystem into the digital economy."

When asked about a potential exit strategy, Saylor said, "Bitcoin is the exit strategy." He argues that Bitcoin is technologically superior to other investments, which positions it well for long-term growth.

As MicroStrategy and Saylor accumulate more satoshis —the smallest denomination of Bitcoin — it will be interesting to see how the ever-changing price of the cryptocurrency will cause them to continue HODLing or potentially sell. 

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