Crypto Moves #49 – How Long Can MicroStrategy’s Premium to Bitcoin Last?

In July 2020, MicroStrategy, a US-based business intelligence firm, announced plans to invest $250 million in alternative assets, including Bitcoin, as a means to protect its capital from inflation. The following month, the company disclosed that it had used the entire amount to acquire 21,454 bitcoins.
MicroStrategy continued building its Bitcoin holdings through the rest of 2020, making three more purchases that brought its year-end total to 70,470 bitcoins. With each acquisition, MicroStrategy’s founder and former CEO, Michael Saylor, became increasingly vocal in his support for Bitcoin. He emerged as a major voice in the crypto community, reaching mainstream audiences and promoting Bitcoin after a long period of limited public attention. His influence was acknowledged when he was included in CoinDesk’s “Most Influential” list for 2020.
This aggressive acquisition strategy did not stop in 2020. MicroStrategy pressed forward with Bitcoin investments in 2021, making multiple additional purchases. In February of that year, the company hosted a two-day “Bitcoin for Corporations” event, urging other companies to consider adding Bitcoin to their balance sheets.
MicroStrategy’s commitment to Bitcoin has only intensified since. As noted in Crypto Moves #17, Saylor’s influence and the company’s Bitcoin holdings have both grown significantly. The firm’s current total stands at approximately 252,220 bitcoins, boosted by the acquisition of an additional 63,079 bitcoins in 2024 alone.
Chart 1: MicroStrategy’s Bitcoin Holdings
MicroStrategy’s premium over Bitcoin has surged due to Saylor’s ‘Bitcoin bank’ vision and the recent stock split. However, with the availability of ETF options, increasing global regulatory clarity—especially under a likely Trump administration—and rising Bitcoin prices putting additional buying pressure on MicroStrategy, we expect the premium to fall below 200%, similar to what occurred during the 2021 bull market.
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