"All In on Bitcoin"... This Company Earns 700 Billion Won a Day

The World's Largest Bitcoin-Holding Company, MicroStrategy

U.S. enterprise software company MicroStrategy, which has been accumulating Bitcoin as a hedge against inflation, recently disclosed its profits from the Bitcoin rally.

Michael Saylor, chairman of MicroStrategy, stated in an interview with CNBC on the 23rd (local time) that the valuation of the company's Bitcoin holdings increased by $5.4 billion (approximately 8 trillion KRW) over the past two weeks, adding, "We are making $500 million (700 billion KRW) a day."

Michael Saylor, Chairman of MicroStrategy. CNBC Broadcast

Chairman Saylor emphasized, "We are currently the fastest-growing company in the U.S. and at the same time one of the most profitable companies," adding, "There are not many companies making $500 million a day."

MicroStrategy's surge in profits is due to Bitcoin's recent sharp rise, approaching $100,000. Saylor, who has been actively accumulating Bitcoin since 2020 as an inflation hedge, increased his holdings by more than 50,000 coins even after the U.S. presidential election, bringing the total Bitcoin holdings to 331,200 coins. Especially after the election victory of pro-coin U.S. President Donald Trump, Bitcoin prices surged 40% over two weeks, increasing the valuation by hundreds of millions of dollars daily.

The company's stock price also soared. The stock, which was $63 at the end of last year, closed at $421 as of the 22nd, rising about 600% this year alone.

Saylor, who transformed the Silicon Valley IT company into the world's largest Bitcoin holder, is currently purchasing Bitcoin using proceeds from stock issuance and sales, and sometimes convertible bonds. Saylor named this strategy "BTC (Bitcoin) yield," explaining that the more Bitcoin the company holds, the higher the stock price rises, allowing the company to sell shares and buy more Bitcoin.

However, there are skeptical views. The Wall Street Journal (WSJ) pointed out that "this method of calculating yield does not account for scenarios where the company maintains the same number of shares and Bitcoin holdings but Bitcoin prices plummet." Last week, when Citron Research announced a short sale claiming MicroStrategy's stock was overvalued, the stock price dropped by about 16%.