The publicly traded company that holds the most bitcoin (BTC) in the world, MicroStrategy, currently has multimillion-dollar unrealized profits in the digital currency.
At the moment, reservations in bitcoin of MicroStrategy It is valued at 20 billion dollars (USD)double the value at which it was acquired.
Precisely, the company acquired such possession through multiple purchases more than four years ago for an average price of USD 10,000 million. The most recent one was made a month and a half ago.
The arrival of the price of bitcoin today at USD 80,000 made this milestone possible.
This is because The average purchase price per bitcoin of MicroStrategy’s reserves is USD 39,464as can be seen in the following graph.
The green circles on the chart represent times when the company made bitcoin purchases. Meanwhile, the green dotted line indicates its average acquisition price and the blue one the price of the digital currency in the market.
MicroStrategy carries out a bitcoin investment strategy known as “dollar cost average (DCA)”. This consists of recurring purchases of an asset with upside potential to average the acquisition cost, instead of trying to identify the bottom of the market to enter.
From 2022 to 2023, MicroStrategy’s bitcoin investment was in losses. This led some to believe that the company had lost the possibility of making profits the previous year when its investment was valued at double its acquisition price.
However, with the upward trend that bitcoin has had in the last year, MicroStrategy ownership has not only returned to profit, but it is currently an unprecedented amount for the company. However, this does not motivate him to sell at the moment, something that reflects the bullish sentiment of Michael Saylor, the company’s founder.
In fact, Saylor commented today that, in his opinion, the published graph “needs more green dots”suggesting that the company will continue making bitcoin purchases in the near future.
MicroStrategy predicts a bullish future for bitcoin
MicroStrategy’s strategy is motivated by bullish 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.”
With such certainty in mind, it seems prudent for this company to position itself to take advantage of this predicted price increase.
Likewise, the president of the company comments that anyone can benefit from investing in BTC. “If you’re going to invest in bitcoin, a short time horizon is four years, a medium time horizon is ten years, and the right time horizon is forever,” Saylor recently opined.
Besides, as long as MicroStrategy maintains this strategy“hodling” BTC (currently holding more than 1% of the BTC that exist and may exist), It contributes to the rise in price because it prevents these currencies from increasing the supply in the market.