MicroStrategy Letter to Shareholders: We Are 'Actively Committed' to Buying More Bitcoin

MicroStrategy CEO Michael Saylor announced to the company’s shareholders that the company intends to “vigorously pursue” its reserve asset strategy to buy and hold more bitcoin.

Saylor’s public company is the world’s largest single wallet holder for bitcoin, with MicroStrategy holding 129,218 BTC, according to wallet tracker Bitcoin Treasury. Those bitcoins are currently worth about $5.1 billion. MicroStrategy accumulated 4197 BTC on April 5.

In comparison, Tesla, the second-place holder in the holding contest, has 43,200 bitcoins, worth about $1.7 billion.

In MicroStrategy’s 2022 proxy statement filed with the SEC on April 14, Saylor praised his firm’s continued success in adding bitcoin to its treasury early on and adding value to clients and shareholders. MicroStrategy only paid about $3.9 billion in bitcoin, which means the company had a paper profit of $1.2 billion. Saylor wrote in the letter:

“Our parallel strategy of buying and holding bitcoin has been a huge success.”

The letter also stated that Microstrategy’s bitcoin holdings are profitable, but it is difficult for company executives to obtain liability insurance. So Saylor provided the insurance out of pocket.

Saylor owns 68.1% of MicroStrategy, which means he can do whatever he wants with the company, which explains why more companies haven't followed his lead. Since 2020, he has been one of Bitcoin's strongest supporters and uses his status to reach a global audience.

On March 29, MacroStrategy, a subsidiary of MicroStrategy, said it would use a $205 million bitcoin-backed loan from Silvergate Bank to buy more bitcoin. Saylor said in a statement that the loan marks the first time his firm has used its bitcoin holdings as “productive collateral.”

MicoStrategy and Do Kwon's Terra (LUNA) are buying tens of millions of dollars worth of bitcoin at a time, helping to maintain some confidence in bitcoin's price despite the global headwinds of war, inflation and rising interest rates. Currently, Terra holds just 800 bitcoins, trailing Elon Musk's Tesla, the second-largest public company by bitcoin holdings.

Bitcoin is down 2.65% over the past 24 hours, trading at $40,109, according to data from Cointelegraph.

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