MicroStrategy’s Genius Bitcoin Strategy
MicroStrategy, the second-largest institutional holder of Bitcoin, has cracked the code for booking profits. Here’s how they do it 👇:
Back in August 2020, under the leadership of Bitcoin maxi Michael Saylor, MicroStrategy started buying BTC. Fast forward to now, and they hold 245k BTC – that’s about 1.2% of Bitcoin’s circulating supply, worth a cool $15.6 billion at today’s prices.
Here’s their brilliant strategy:
1️⃣ Raise capital by selling debt and convertible notes
2️⃣ Use the capital to buy BTC, driving up its price
3️⃣ Watch the value of their BTC holdings skyrocket as Bitcoin’s price increases
4️⃣ Mark-to-market gains, boosting their reported profits
5️⃣ Higher profits = higher share price 📈
6️⃣ Rinse and repeat, buying even more BTC!
In short, they’re using fiat (which has infinite supply) to stack Bitcoin (which has a fixed supply), and guess what? Bitcoin’s appreciated by 45% over the past 5 years! 🔥
No wonder they’re sitting on billions in unrealized gains! Genius, right? 🤯
P.S. How has no one thought of this before?!
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