Microstrategy Increases Financial Rankings With $26B Bitcoin Stash

MicroStrategy's decision to switch from traditional cash stocks to Bitcoin has changed its financial profile, placing the company at the forefront of digital asset adoption.

This change significantly boosts MicroStrategy's position in the corporate finance ranks as Bitcoin's recent surge to unprecedented price levels.

Microstrategy focused on Bitcoin is bigger than IBM and Nike in assets

The company's bitcoin stash is now estimated at $26 billion, and is said to exceed the cash and liquid assets held by giants such as IBM, Nike and Johnson & Johnson. For comparison, the companies' market cap data shows that Nike's reported cash and securities totaled $10.9 billion as of August, while IBM held $13.7 billion. Johnson & Johnson's latest quarterly figures list $20.29 billion.

This financial position shows that the niche software provider has redefined its identity by embracing Bitcoin as a major financial asset. However, despite this impressive position, MicroStrategy still trails 14 companies in terms of corporate treasury assets, including Apple and Alphabet.

The company began buying bitcoin in 2020 to hedge against inflation and slow earnings growth. Initially funded by operating cash flow, these acquisitions have expanded to include capital raised through equity sales and revolving debt issuance.

To date, MicroStrategy has raised 279,240 BTC at an average acquisition cost of $42,888, for a total investment of around $11.9 billion. This puts the firm as the largest owner of publicly traded Bitcoin, controlling around 1.3% of the total supply of the cryptocurrency.

What initially faced skepticism has now become a major draw for investors seeking direct exposure to Bitcoin. A shift in thinking has driven MicroStrategy stock up more than 2,500% since 2020. This corresponds to a 700% price increase during the same time frame.

Currently, MicroStrategy's bitcoin holdings have a windfall of $13.4 billion, representing a 112 percent increase. The company's Bitcoin yield — a measure of the relationship between Bitcoin holdings and shares outstanding — rose 26.4% year-over-year.

However, MicroStrategy CEO Michael Saylor remains steadfast in the company's Bitcoin-centric vision. The company plans to raise $42 billion in the coming years to further expand its Bitcoin holdings. Meanwhile, MicroStrategy aims to transform itself into a trillion-dollar bitcoin bank, cementing its role as a pioneer in corporate Bitcoin adoption.