Every MicroStrategy Investor Should Keep an Eye on This Number

Core Viewpoint - MicroStrategy is increasingly viewed as a direct investment in Bitcoin due to its significant Bitcoin holdings and ongoing purchasing strategy, which has implications for its stock performance and shareholder returns [1][2]. Company Strategy - Under the leadership of co-founder and Chairman Michael Saylor, MicroStrategy converted most of its cash reserves into Bitcoin in 2020, financing further purchases through stock sales and new debt [2]. - The company has utilized free cash flows from its software business to acquire additional Bitcoin, indicating a strong commitment to this strategy [2]. Financial Metrics - MicroStrategy currently holds approximately 423,650 bitcoins, purchased at an average price of $60,324 per coin, representing a total investment of $25.6 billion, which is now valued at around $42.4 billion [3]. - The Bitcoin portfolio constitutes nearly half of MicroStrategy's total market capitalization of $90.4 billion [3]. Shareholder Impact - The company's share count has nearly doubled in less than two years due to its aggressive Bitcoin purchasing strategy, which is highly dilutive for existing shareholders [4]. - Despite a 1,410% increase in market cap and a 657% rise in share price during this period, the financing strategy may undermine long-term shareholder returns as the company plans to borrow about $21 billion from shareholders over the next three years [4][5].