When one thinks about the Bitcoin movement and what company started the trend of using Bitcoin for its treasury, Strategy Inc. (NASDAQ: MSTR) comes to mind. Formerly known as MicroStrategy, its CEO, Michael Saylor, has been a diehard proponent of Bitcoin. The company made a major strategic pivot in August 2020, announcing its first Bitcoin purchase: 21,454 Bitcoins acquired for approximately $250 million.
Since then, companies in the computer & technology sector, like Block Inc. (NYSE: XYZ), and companies in the retail/wholesale sector, like MercadoLibre Inc. (NASDAQ: MELI), have added Bitcoin to their balance sheets as a treasury reserve asset in place of traditional cash holdings. Investors have lauded the decision during the Bitcoin run-up but question it during downturns as Strategy continues to put its fate in Bitcoin by basically converting shares into cryptocurrency through stock offerings. Investors are left to contemplate whether Strategy is a beacon for Bitcoin or a bagholder that went all in for the wrong reasons.
