- In the given case, MicroStrategys Bitcoin Investment is quite rigorous in its practice of buying bitcoins, more so during the periods of low volatility.
- They have also dollar-cost averaged to purchase BTC for $13b.
- Through the strategic long-term investment plans as well as the high cash deployment, the company has been able to defend and expand its bitcoins.
Consistent Accumulation Over Time
MicroStrategy has been buying bitcoins year by year, especially at low volatility phases of Bitcoin prices. Thus, due to dollar-cost averaging, the company managed to buy BTC, which are worth $13 billion. Even for the recent volatility of the crypto market where the market prices of several cryptos has dipped, this pile of bitcoin has retained this value in the possession of MicroStrategy.
More Sustained Level of Liquidation Supports the Process of Stabilization
The other claim that makes MicroStrategy’s bitcoin portfolio stable is the high level of the liquidation. The balance positions the firm in a way that it can never be forced to sell bitcoins at an unfavorable time so as to clear its obligations. It also gives MicroStrategy the financier position necessary to buy more bitcoins for its inventory persistently.
Methodical Purchase Approach
In its purchase of bitcoins, MicroStrategy has been slow and methodical. The above chart of bitcoins purchase shows that the company goes on to purchase bitcoins at fixed time interval without responding to the change in price. MicroStrategy also views Bitcoin as a store of value and an inflation hedge and the current long-term price buying strategy is inline with this understanding.
Massive Corporate Bitcoin Holdings
When applying the investment concept to cryptocurrencies, MicroStrategy has purchased about $13 billion worth of them. This puts it in the list of some of the biggest corporate owners of bitcoins globally. For this reason, the company continues to be well positioned to proceed the business of accumulating yet a lot more bitcoins.
The above method of durable investment can well cope with volatility.
MicroStrategy has been able to amass about $13 billion in bitcoin by consistently, mechanically purchasing the cryptocurrency and then holding it for the long-term. These factors include a long-term investment plan and having a high amount of cash that the firm can deploy to purchase bitcoins as and when they experience changes. So far, it has been useful in defending and growing MicroStrategy’s bitcoin reserves.
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