Setting the trend for Bitcoin corporate treasuries, Strategy (MicroStrategy), made a bold move by investing $250 million in Bitcoin five years ago today on August 11, 2020, by purchasing 21,454 BTC at the time.
This decision, spearheaded by Executive Chairman Michael Saylor, marked the start of a transformative vision, which has since propelled the company’s stock price up 2,600% since.
Over the last five years, the business intelligence software firm has amassed 628,791 BTC in total, valued at approximately $76.71 billion. This makes it the largest corporate Bitcoin holder globally.
Strategy’s Aggressive Bitcoin Accumulation
Strategy’s Bitcoin acquisitions are largely funded through convertible debt, share sales, and stock offering, which includes a recent $2 billion preferred stock offering. Saylor’s vision of Bitcoin as “digital gold” and a hedge against inflation has paid dividends, with the firm’s stock (MSTR) climbing from under $15 in 2020 to over $395 by August 2025.
Its Bitcoin treasury, which has an average buying price of $73,277 per BTC, now boasts an unrealized profit of $28.8 billion. Strategy’s “21/21 Plan” aims to raise $42 billion over three years to further bolster its holdings, with $21 billion each from equity and debt offerings. This approach has inspired a number of companies, including Tesla and Semler Scientific, to adopt Bitcoin treasuries and get exposure to crypto assets.
Risk of Bitcoin Price Correction
While Strategy’s Bitcoin treasury strategy has resulted in substantial gains, the firm faces significant risk of a huge crash if Bitcoin goes into correction mode. Michael Saylor has acknowledged that a prolonged 90% Bitcoin price drop could harm shareholders. However, Chaitanya Jain, the Bitcoin Strategy Manager of the firm, recently disclosed that even if Bitcoin crashes to $20K, the company would do fine.
Despite such risks, Strategy’s stock (MSTR) has outperformed Bitcoin’s 1,000% rise and the S&P 500’s 115% gain over the same period. As Bitcoin hovers near record highs, Strategy’s bold bet continues to reshape corporate investment strategies, cementing its position as a pioneer in the crypto space.
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