Microstrategy’s $26B Bitcoin Stash Is Larger Than the Cash and Marketable Securities of IBM, Nike, and J&J Combined

Microstrategy has acquired 279,420 BTC, which represents roughly 1.33% of the total supply. The company's shares have surged by over 2,500% as the value of Bitcoin has soared around 700% since the middle of 2020.

MicroStrategy’s Bitcoin holdings, valued at $26 billion, now exceed the cash and marketable securities of several global market leaders, including International Business Machines Corp. (NYSE: IBM), Nike Inc. (NYSE: NKE), and Johnson & Johnson (NYSE: JNJ), according to the latest Bloomberg report.

While Nike had $11.882 billion in cash and marketable securities as of March this year, IBM recently reported having $13.7 billion in cash, restricted cash, and marketable securities. Johnson & Johnson’s latest Q3 report showed the company had $20 billion in cash and marketable securities.

Only a handful of corporations, including Apple Inc. (NASDAQ: AAPL) and Alphabet Inc. (NASDAQ: GOOGL), have more assets in their treasuries than MicroStrategy.

MicroStrategy’s unique BTC strategy

Saylor, a co-founder and chairman, decided to invest in Bitcoin in 2020 as a hedge against inflation while MicroStrategy’s revenue growth stagnated. The firm has acquired 279,420 BTC, which is roughly 1.33% of the total supply.

MicroStrategy has employed a unique strategy in which they raise debt capital and use it to purchase bitcoin. The theory behind this strategy is that the company can repay the fiat debt by selling less bitcoin in the future. Other companies are starting to follow suit.

The company’s shares have surged by over 2,500% as the value of Bitcoin has soared by about 700% since mid-2020, making it the best-performing major U.S. stock during the period.

Dave Zion, founder of Zion Research Group, said, “Their balance sheet is mainly a function of the price of Bitcoin. They don’t control the price of Bitcoin, so they will just ride that wave, and it’s a wave that could go up or down.”

MicroStrategy’s next step is the “21/21 Plan,” where it plans to raise $42 billion, then use it to buy more Bitcoin. MicroStrategy already has 252,200 Bitcoins on its balance sheet, which is worth more than $21 billion at today’s prices. So the plan is to double the company’s current Bitcoin holdings.

“What started as a defensive strategy to protect the value of its reserve assets has become an opportunistic strategy intended to accelerate the creation of shareholder value,” said TD Cowen analyst Lance Vitanza.

Bitcoin bull run to $100K to push MSTR higher?

As Bitcoin is expected to hit $100,000 within the next three months, MicroStrategy’s stock is also set to benefit from this surge.

According to Wall Street analysts who have covered MicroStrategy with a 12-month price target in the past three months, the average price target is $302.75, with a high of $385.00 and a low of $270.00, as reported by CCN.

Bitcoin is currently trading at $91,181, down 0.22% in the last 24 hours.

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