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  • February 2022 (Revised March 2022)
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MicroStrategy's Investment in Bitcoin

By: C. Fritz Foley
  • Format:Print
  • | Language:English
  • | Pages:20
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Abstract

At the end of the second quarter of 2020, MicroStrategy, a Virginia based provider of analytics software and services, announced plans to acquire and hold bitcoin as a part of the firm’s treasury reserve policy and corporate strategy. Within a year, the firm purchased 105,085 bitcoins, which it had acquired for $2.471 billion and had a market value of $3.653 billion. These purchases were financed by the issuance of more than $2 billion in debt. Was this investment in bitcoin sensible? Did MicroStrategy make reasonable capital structure choices? Did the market fairly value MicroStrategy’s equity? Were the different bonds MicroStrategy issued valued appropriately?

Keywords

Bitcoin; Corporate Strategy; Acquisition; Investment Portfolio; Capital Structure; Equity

Citation

Foley, C. Fritz. "MicroStrategy's Investment in Bitcoin." Harvard Business School Case 222-048, February 2022. (Revised March 2022.)
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About The Author

C. Fritz Foley

Finance
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Related Work

    • February 2022
    • Faculty Research

    MicroStrategy's Investment in Bitcoin Excel Supplement

    By: C. Fritz Foley
    • February 2022 (Revised March 2022)
    • Faculty Research

    MicroStrategy's Investment in Bitcoin

    By: C. Fritz Foley
    • January 2023
    • Faculty Research

    MicroStrategy’s Investment in Bitcoin

    By: C. Fritz Foley, Celine Chammas and Donal O'Cofaigh
Related Work
  • MicroStrategy's Investment in Bitcoin Excel Supplement By: C. Fritz Foley
  • MicroStrategy's Investment in Bitcoin By: C. Fritz Foley
  • MicroStrategy’s Investment in Bitcoin By: C. Fritz Foley, Celine Chammas and Donal O'Cofaigh
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