Bitcoin Boom Sends Michael Saylor’s MicroStrategy Toward $14B Q2 Windfall—Without Selling a Thing

Michael Saylor’s MicroStrategy, once a modest software firm, is now riding high on a bold Bitcoin strategy that could land it a $14 billion paper gain in the second quarter of 2024—all without selling a single product or coin.

As Bloomberg reported on July 1, the Virginia-based company is expected to post an unrealized gain of roughly $14 billion, thanks entirely to the rising price of Bitcoin and a recent change in accounting standards. The new rules allow firms to mark crypto assets at fair market value, giving investors a clearer picture of their holdings' real-time worth.

Michael Saylor’s Strategy to Join Wall Street Elite With $14 Billion Windfall

Michael Saylor’s Strategy is likely to register an unrealized gain of about $14 billion in the second quarter, putting the once floundering enterprise software maker turned leveraged Bitcoin proxy among the select ranks of corporate titans such as Amazon.com Inc. and JPMorgan Chase & Co.

BloombergKirk Ogunrinde

MicroStrategy’s software business remains relatively small—bringing in just $112.8 million last quarter—but the company’s balance sheet tells a very different story. Its 597,325 Bitcoin, purchased over the last four years, have ballooned in value amid a 30% rally in BTC during Q2. The result? A market position that rivals earnings giants like Amazon and JPMorgan, at least on paper.

A Bitcoin Bet That Changed Everything

Saylor’s pivot in 2020—beginning with a $250 million Bitcoin purchase—was widely viewed as a Hail Mary by a company that had long since faded from the tech spotlight. Four years later, MicroStrategy’s stock has surged over 3,300%, far outpacing both the S&P 500 and Bitcoin itself.

That pivot has effectively turned the company into a proxy Bitcoin ETF, cloaked in a software company’s legal structure. It now commands over $64 billion in crypto holdings, making it one of the world’s largest corporate owners of digital assets.

The turning point came on June 30, when MicroStrategy was added to the Russell Top 200 Value Index, a benchmark typically reserved for cash-generating stalwarts like ExxonMobil. While MicroStrategy lacks traditional earnings and dividends, its Bitcoin-based performance forced a rethinking of what defines “value” in modern markets.

Critics Call It “Financial Gibberish”

Not everyone is impressed. Noted short-seller Jim Chanos has labeled MicroStrategy’s business model “financial gibberish,” arguing that the stock’s premium over its actual Bitcoin holdings is unsustainable. His view: sell the stock, buy the coin.

But even with skepticism mounting, imitators are emerging. Sharplink Gaming has built an Ethereum reserve, Upexi raised $100 million to invest in Solana, and BitMine Immersion is amassing Ether with $250 million in backing. Meanwhile, blue-chip firms like Tesla and Block still hold Bitcoin, though none match MicroStrategy’s singular focus or scale.