Microstrategy is officially underwater after paying an average price of $30,700 per Bitcoin; Founder Michael Saylor falls from crypto billionaire ranks
We first covered Microstrategy in 2019 after the Virginia-based provider of enterprise analytics and mobility software company sold the domain name Voice.com for $30 million to blockchain-based social media platform Voice. In recent years, however, MicroStrategy has pivoted from its core business of creating and selling analytics software to bitcoin acquisitions.
Fast forward two years after the $30 million domain windfall, MicroStrategy announced it borrowed $400 million to buy Bitcoin even as its stocks plunged from an all-time high of $1292 to $472. MicroStrategy said it purchased a total of 70,470 bitcoins for $1.125 billion at an average price of $15,964 per bitcoin. But that was where the good news ended.
Then on June 21, 2021, MicroStrategy bought another tranche of 105,085 bitcoins for $2.741 billion at an average price of ~$26,080 per bitcoin.
MicroStrategy has purchased an additional 13,005 bitcoins for ~$489 million in cash at an average price of ~$37,617 per bitcoin. As of 6/21/21 we #hodl ~105,085 bitcoins acquired for ~$2.741 billion at an average price of ~$26,080 per bitcoin. $MSTRhttps://t.co/gLfnOxZEZc
— Michael Saylor⚡️ (@saylor) June 21, 2021
Just like drug addiction, MicroStrategy continued to buy more bitcoins regardless of the bitcoin price at the time. The company made two more Bitcoin purchases in 2021. On November 29, 2021, the company bought another 7,002 bitcoins for $414 million, making a total of 121,044 bitcoins at an average price of about $59,187 per bitcoin. On December 10, MicroStrategy bought another 1,434 bitcoins for ~$82.4 million in cash at an average price of $57,477 per bitcoin, bringing its total Bitcoin holdings to 121,044 bitcoins for ~$3.66 billion.
Then on April 5, 2022, MicroStrategy announced it purchased additional 4,167 bitcoins for ~$190.5 million at an average price of $45,714 per bitcoin. The company now owns a total of approximately 115,110 bitcoins, making the company one of the top ten largest bitcoin holders in the world.
MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTRhttps://t.co/Z45OuJU5KI
— Michael Saylor⚡️ (@saylor) April 5, 2022
As we reported earlier this morning, the price of Bitcoin briefly fell below $24,000 before it hovered back up to $28,000. At bitcoin’s current price of $28,200 as of the time of writing, MicroStrategy is now looking at a loss of around $330 million.
The loss is not a death sentence for Microstrategy. The real problem comes when Bitcoin goes hits $22,000, at which Saylor will get a margin call. If Bitcoin drops below $21,000, Saylor will be forced to pay up.
What will happen next? No one knows. Saylor has been poking fun at himself since the Bitcoin roller coaster ride began about two weeks ago. In a post on Monday, Saylor posted a photo of himself flipping burgers at McDonald’s.
— Michael Saylor⚡️ (@saylor) May 9, 2022
Meanwhile, Michael Saylor has fallen from crypto billionaire ranks as the crypto carnage continues. According to estimates from Forbes Magazine, Saylor, who was worth $1.6 billion at the beginning of March, saw his net worth drop below the $1 billion mark on Wednesday. Saylor is not alone. Other crypto billionaires including Binance founder, also lost fortune.