Over the past six weeks, MicroStrategy has shelled out billions of dollars to buy Bitcoin at a considerably high price. In fact, in the most recent purchase of 15,350 BTC (on December 16), the company paid $100,386 for each coin. Buying a volatile asset at a price close to all-time highs seems to defy theory, but the company has an explanation.
During an interview with CNBC, the company's CEO, Michael Saylor, explained the reasons for this approach. As is well known, logic dictates that risky assets should be bought when their price is low in order to profit when it rises. In fact, this is what whales generally do to increase their wealth.
However, Saylor has no intention of liquidating his company’s BTC holdings. His strategy is to buy regardless of whether the price crashes for a winter or is at an all-time high. The limited issuance of BTC, coupled with rapidly increasing adoption, ensures that the currency will appreciate permanently.
In that sense, whenever you decide to buy Bitcoin, it will always be a cheap purchase, according to Saylor. The latter, considering that it is an asset that is in its early stages. The entrepreneur compares the current investment in BTC with the investment in Manhattan 100 or 200 years ago.
Buying Bitcoin is a winning bet no matter the price
During the interview, Saylor stressed that an abstract person who bought properties in Manhattan 100 years ago bought them at a slightly higher price than those who bought before him. However, this fact did not affect the long-term winning prospect of the investment at all. Both buyers amassed a fortune over time thanks to the fact that they both bought at an early stage.
The same is true for Bitcoin, explains the popular BTC evangelist. It is an asset that has been in circulation for less than 20 years. In a few decades' time, when looking back, investments in 2013 and 2024 will be considered early purchases alike.
According to Saylor, both companies and individuals who invest in Bitcoin will see huge returns in the long term. This explains why his company, MicroStrategy, is not intimidated by warnings that it is buying BTC at very high prices.
The company's huge returns since it began its BTC adventure prove that its strategy is a winner. So much so that other companies are emulating it and in recent months corporate purchases of Bitcoin have reached levels unimaginable just a few years ago.
According to Saylor's predictions, the price of Bitcoin will reach $13 million per coin in the long term.