MicroStrategy's Billionaire CEO Cashes In on Bitcoin Surge, Amassing Massive Gains

MicroStrategy's Chairman, Michael Saylor, has significantly profited from stock sales and Bitcoin holdings. Through a stock-sale plan, Saylor has earned $370 million, while his personal Bitcoin and MicroStrategy shares are worth an estimated $3.49 billion, an increase of nearly $1 billion since the year's start. MicroStrategy's stock value has surged alongside Bitcoin's rise, with the company holding over 214,000 Bitcoin tokens, valued at $13.7 billion, contributing to Saylor's net worth of approximately $4 billion.

MicroStrategy's Billionaire CEO Reaps Massive Gains Amidst Bitcoin Surge

MicroStrategy's Executive Chairman, Michael Saylor, has amassed a staggering fortune through a combination of stock sales and burgeoning Bitcoin holdings, as revealed in recent filings with the Securities and Exchange Commission (SEC).

Since the beginning of 2023, Saylor has realized a staggering $370 million through the sale of hundreds of thousands of MicroStrategy shares under a pre-arranged stock-sale plan. However, this figure pales in comparison to his colossal paper profits.

As of Friday, Saylor's combined holdings of MicroStrategy shares (excluding those in the stock-sale plan) and his self-disclosed personal Bitcoin stash were valued at approximately $3.49 billion. This represents an impressive 60% gain, or over $1 billion, since the year's start.

Moreover, since the crypto sector's resurgence in early 2023, Saylor's shares and Bitcoin holdings have generated paper gains of nearly $3 billion.

MicroStrategy's stock value has skyrocketed since January, buoyed by Bitcoin's ascent to new heights, fueled in part by the introduction of new exchange-traded funds (ETFs) tracking the digital asset. Shares of MicroStrategy have soared by 86%, adding to the over 300% surge witnessed in 2023. Despite a 2.8% decline on Friday, the shares closed at approximately $1,174. Meanwhile, Bitcoin has rallied by 46% in 2024 and has catapulted nearly 300% since the start of 2023.

Saylor, once a crypto skeptic who became a fervent believer, has transformed MicroStrategy into a proxy for Bitcoin's success. Over the past four years, the company has acquired billions of dollars worth of Bitcoin, sometimes employing leverage. Under Saylor's leadership as CEO in 2020, MicroStrategy made its initial Bitcoin purchase, spending $250 million to acquire 21,454 tokens at an average price of approximately $12,000 each.

Fast forward to today, MicroStrategy's Bitcoin holdings have ballooned to over 214,000 tokens, representing roughly 1% of all Bitcoin in circulation. At Saturday's price of around $64,000 per Bitcoin, the company's Bitcoin trove is valued at approximately $13.7 billion. Given Saylor's ownership of around 12% of MicroStrategy's shares, his stock holdings, combined with his personal stash of over 17,000 Bitcoin, contribute significantly to his net worth of just under $4 billion, as estimated by Forbes.

MicroStrategy has yet to respond to Fortune's request for comment.

Saylor's investment journey has not been without its share of setbacks. During the dot-com boom, he ascended to billionaire status with MicroStrategy, but in 2000, the company's disclosure of a 25% overstatement of its 1999 revenue sent shockwaves through the industry. The ensuing accounting scandal cost Saylor $6 billion in a single day, marking the largest individual loss in a 24-hour period at the time. Subsequently, the SEC accused him of violating federal securities laws, which he settled by paying $8 million without admitting wrongdoing.

Later, Saylor's decision to embrace Bitcoin was met with skepticism from investors and analysts. In 2022, David Trainer of research firm New Constructs characterized Saylor's Bitcoin purchases as a "gross misallocation" of investors' capital.

"In terms of madmen, Saylor is 'Elon Junior,' without the business talent," Trainer remarked at the time.

For a time, the naysayers appeared to have the upper hand. After Bitcoin reached its previous peak in November 2021, MicroStrategy's strategy of mirroring Bitcoin's performance backfired as the cryptocurrency plummeted in value. The company became one of the worst-performing large-cap stocks of 2022, primarily due to the decline in Bitcoin prices.

Nevertheless, Saylor remained steadfast in his conviction. Last month, he confidently asserted to CNBC that Bitcoin would "eat gold," replacing it as the primary store of value.

The long-term viability of MicroStrategy's strategy to serve as a proxy for Bitcoin remains to be seen, particularly in light of the SEC's approval of several spot Bitcoin ETFs in January.

Undeterred by the potential competition, Saylor, with his newfound wealth, exudes confidence.

"Is there any company in the world that you wouldn't like to invest in that could borrow $1 billion at less than 1% interest to invest in your best idea?" he boldly stated to CNBC.