Saylor's wealth has surged due to market momentum in recent days.
Michael Saylor, co-founder of MicroStrategy, experienced a significant increase in his personal wealth of approximately $700 million due to a three-day surge in the company's stock prices and the value of bitcoins.
Saylor's Wealth Reaches $700 Million
MicroStrategy, whose stock value is closely tied to its significant bitcoin investments, saw a 10% increase in its stock price on Wednesday. This rise is part of a 40% increase over three days.
Saylor, who owns a 12% stake in MicroStrategy and personally holds 17,732 bitcoins, saw his asset value increase by about $700 million from Sunday to Wednesday. The combined value of his stake in MicroStrategy and his bitcoin holdings during this period rose from $2.27 billion to $2.96 billion.
Business Strategy
Michael Saylor, who founded MicroStrategy in 1989, has emerged as a passionate advocate for bitcoin. In 2023, he co-authored a book titled "What Are Money?" on cryptocurrency.
MicroStrategy adopted a bitcoin-focused investment strategy in 2020, aiming to hedge against inflation and diversify its reserves. Despite losses during the crypto downturn, when the value of bitcoin fell below $30,000, Saylor's company remained committed to its strategy and decided to acquire more BTC rather than sell.
Key Catalyst - Bitcoin Rally
A significant catalyst this week was the rally in bitcoin to its highest level since November 2021. Bitcoin reached approximately $64,000 on Wednesday, a remarkable increase from $51,500 at the beginning of the week. However, due to issues with the Coinbase app, it later dropped to around $60,000, leaving many users with zero balances in their accounts.
Demand for bitcoin was primarily driven by spot bitcoin ETFs, which now collectively hold more BTC than MicroStrategy. Bloomberg analyst Eric Balchunas revealed that newly listed bitcoin ETFs surpassed $2 billion in trading volume on February 27, the second day in a row, and reached a record high of $2.4 billion on February 26.
Furthermore, BlackRock, the world's largest asset manager, achieved significant success with its iShares Bitcoin ETF (IBIT), which recorded trading volume of $1.3 billion on February 27, surpassing its previous record.
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