- MicroStrategy has realized gains of $10 billion from its Bitcoin investment, affirming the optimistic outlook of its president, Michael Saylor.
- The company’s steadfast approach to holding its Bitcoin investment, which totals more than 1% of all bitcoins, continues to influence the market price positively.
MicroStrategy, the publicly traded company that holds the world’s largest amount of Bitcoin (BTC), is currently reporting unrealized gains of several million dollars in the digital currency. The company’s Bitcoin reserves are currently valued at $20 billion, double the amount at which the company initially acquired them.
Specifically, the company acquired this possession through multiple purchases made over four years ago at an average price of 10,000 million USD, with the last purchase made just one and a half months ago. The current Bitcoin price reaching $80,000 has enabled this milestone.
Market Impulse
With the volatile cryptocurrency market, MicroStrategy’s investment strategy, known as “Dollar Cost Averaging (DCA),” involves recurring purchases of an asset with potential for appreciation to average acquisition costs, rather than trying to time the market bottom for entry. This strategy is evident from the company’s investment history, which saw losses from 2022 to 2023. However, with Bitcoin‘s recent uptrend, MicroStrategy has not only regained profitability but is also experiencing an unprecedented amount for the company.
This, however, does not currently motivate them to sell, reflecting the optimistic sentiment of Michael Saylor, the founder of the company.
In fact, Saylor commented today that the published graph, in his opinion,
“needs more green dots,”
indicating that the company will continue to make Bitcoin purchases in the near future.
MicroStrategy envisions a bullish future for Bitcoin based on optimistic expectations for the digital currency for at least the next decade. Saylor commented that, according to his analysis,
“the price of Bitcoin will grow faster in the next 10 years.”
Given this certainty, it seems prudent for this company to position itself to benefit from this projected price increase. Moreover, as long as MicroStrategy maintains its strategy of “Hodling” BTC (it currently holds more than 1% of the existing and possibly future BTC), it contributes to the price increase by preventing these currencies from increasing the supply on the market. Saylor also commented that anyone can benefit from investing in BTC.
“If you want to invest in Bitcoin, a short timeframe is four years, a medium timeframe is ten years, and the right timeframe is forever,”
Saylor recently remarked.
