Michael Saylor, CEO and Founder of MicroStrategy recently took to Twitter to reveal that their Bitcoin treasury operations had a very impressive yield of 26.4% this year.
Without incurring the costs associated with Bitcoin mining, this strategy has provided around 49,936 BTC in incremental value to MicroStrategy shareholders or 157.5 BTC per day since adopting this strategy on October 26, 2020.
Michael Saylor’s MicroStrategy Achieves Record Bitcoin Yields of 26.4%
In its latest strategic move, MicroStrategy acquired an additional 27,200 BTC, valued close to $2 billion, bringing its total holdings to 279,420 BTC. With Bitcoin’s value reaching an all-time high above $82,000, MicroStrategy’s BTC assets now hold a market value of just under $23 billion, resulting in an unrealized profit of about $11 billion.
MicroStrategy has a distinctive Bitcoin-acquisition strategy, as it issues shares to raise capital that is immediately funnelled into BTC purchases. This not only increases its BTC reserves but also has a positive impact on the price action of Bitcoin. Since the price of Bitcoin rises MicroStrategy (MSTR) stock market also rises, which reinforces both BTC and MSTR.
MicroStrategy a few days ago launched the final tranche of its Bitcoin dividend program — dubbed under MicroStrategy´s “21/21 Plan,” which solicits an additional $42 billion over three years to greatly increase BTC on the company books.
The Road Ahead
Saylor would not only be simply announcing that the company will buy Bitcoin but also betting big on the stock split, which denotes long-term strategy and deals for shareholders towards one of the key assets in future, Bitcoin.
Not only does the persistent Bitcoin practice by MicroStrategy reinforce the confidence in its shareholders, but it has also triggered a wave of interest from other corporations to select BTC as one of their treasury assets.
Despite the continuation of regulatory uncertainties, particularly in major markets such as the U.S., MicroStrategy’s strategy highlights a trend of increasing dominance from institutional players in the cryptocurrency space.
The 21/21 Plan and Saylor’s announcement represent a bullish first step towards the long-term expression of BTC as an asset class through large-scale investment into Bitcoin, to secure its future.
As Bitcoin prices rise and MicroStrategy profits, the Saylor approach demonstrates BTC is a growing asset for corporations, as well as proving itself to be meritologically suited for delivering outsized returns.