|Headquarters||Tysons Corner, Virginia|
|Key People||Michael Saylor, CEO|
MicroStrategy is a software firm that provides tools for business analytics as well as serves as a speculative bitcoin investment vehicle. While not a cryptocurrency native company, MicroStrategy reportedly became the first publicly-listed company to allocate capital reserves to cryptocurrency when it purchased 21,454 bitcoin in August 2020.
MicroStrategy announced on August 11, 2020 that it had invested approximately $250 million in bitcoin saying, “Our investment in bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders.” The company alluded to its upcoming purchase in its July 28 report on its second quarter 2020 financial results. It also said it would return approximately another $250 million to shareholders.
On June 7, 2021 the company announced that its subsidiary MicroStrategy Services Corp would offer $400 million in notes in order to purchase bitcoin. At the same time, the company warned that it would be forced to record an impairment for the second quarter of 2021 of at least $284.5 million due to unrealized losses on the bitcoin it had previously purchased.
In 2000, Michael Saylor, who was chairman at the time, accepted a penalty of $350,000 personally and $8 million from the company to settle charges of a massive accounting fraud from the U.S. Securities and Exchange Commission. Saylor and two other executives were charged with committing civil fraud. The agency forced the company to restate its earnings for the previous three years during which the company had claimed consecutive profits. The restatement showed the company had much lower revenues than previously reported and in fact had experienced losses each year.
- MicroStrategy becomes first listed company to buy bitcoin as part of its capital allocation strategy. The Block Crypto.
- MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset. MicroStrategy.
- MicroStrategy Announces Second Quarter 2020 Financial Results. MicroStrategy.
- MicroStrategy to Offer $400M in Notes to Buy More Bitcoin Even as It Warns of $284.5M Impairment. CoinDesk.
- MicroStrategy Chairman Accused of Fraud by S.E.C.. New York Times.