MicroStrategy chief reveals how many bitcoins he owns

CEO MicroStrategy Michael Saylor disclosed that he personally holds a substantial portion of his assets in Bitcoin as a private individual. 

Some have asked how many bitcoins I own. I personally hold 17,732 BTC, which I bought at an average of $9,882 per coin. I informed MicroStrategy of these holdings before the company decided to buy bitcoin for itself.

Some have asked how much #BTC I own. I personally #hodl 17,732 BTC which I bought at $9,882 each on average. I informed MicroStrategy of these holdings before the company decided to buy #bitcoin for itself.

— Michael Saylor (@michael_saylor) October 28, 2020

Saylor’s personal cryptocurrency holdings account for nearly half of the company’s investments.

MicroStrategy holds 38,250 BTC, which it has spent $425 million on. The average purchase price per BTC was $11,111.

The day before, MicroStrategy reported its highest revenue since 2016 and a rise in profit from $11.6 million to $19.8 million for the third quarter. CEO Michael Saylor partly explains this success by shifting part of the capital into bitcoin.

During a conference call with analysts, much of MicroStrategy’s CEO’s remarks were devoted to describing the advantages of the first cryptocurrency. He urged viewing Bitcoin as “programmable gold” and compared its forthcoming adoption to the advent of social networks.

Bitcoin is becoming something more exciting than a simple digital bar of gold; it is becoming a monetary network. It is a network of digital energy that does not lose monetary energy. Its preservation and capitalization lay at the heart of our decision to buy bitcoin,” said Saylor.

Fung Li, MicroStrategy’s Chief Financial Officer, noted that the decision to buy 38,250 BTC (in two tranches in July and September) broadened the pool of potential clients and strengthened the company’s reputation.

“These investments have attracted cryptocurrency supporters to the technologies for safeguarding independent and open markets. The far-reaching and noticeable effect allowed us to strengthen our market positions,” Li explained.

He also noted rising traffic on MicroStrategy’s site and more active engagement with new types of clients. Fung Li expects a “significant increase in revenue” once partnerships are closed with them.

Earlier this month, Michael Saylor said that MicroStrategy plans to hold the acquired bitcoins for 100 years. He also predicted that in coming months the first cryptocurrency would be chosen by other private companies.

In October, the payments company Square, led by Jack Dorsey, announced purchases of $50 million of bitcoin. Following its example were the asset-management firm Stone Ridge Holdings Group and the London-listed fintech group Mode Global Holdings.

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