MicroStrategy ($MSTR) is up 65% when the price of $BTC reached $52,000. They have an unrealized profit of about $4 billion.
What's their strategy? Let's find out.
Let's digest this information.
1. MicroStrategy believes in #Bitcoin
In 2020, they had 70,470 BTC
Cost: about $1.125 Million
Value: $1.545 Million They were up 37%
In 2021, they had 124,391 BTC
Cost: about $3.75 Million
Value: $6.12 Million
They were up 63%
In 2022, they had 132,500 BTC
Cost: about $4 Million
Value: $2.2 Million
They were DOWN 45%
In 2023, they had 189,150 BTC
Cost: about $5.9 Million
Value: $7.9 Million
They were up 34%
Today they have 190,000 BTC
Cost: about $5.95 Million
Value: $9.8 Million They were up 65%
2. Buying Profile
Top 5 biggest buy
Dec 2020: 29,6464 BTC
Aug 2020: 21,454 BTC
Feb 2021: 19,452 BTC
Sep 2020: 16,796 BTC
Nov 2023: 16,130 BTC
The highest purchase happened when $BTC broke out from its 2016 ATH of almost $20k.
The second purchase is the first-ever purchase of Microstrategy.
The third one happened when $BTC traded at the price of $52.7K.
The fourth purchase is the 2nd purchase made by $MSTR.
The fifth happened 2 months ago.
3. Cheapest Purchase
$10.4k per BTC (16,796 BTC)
$11.6k per BTC (21,454 BTC)
$16.7k per BTC (810 BTC)
$17.8k per BTC (2395 BTC)
$19.3k per BTC (301 BTC)
4. Bitcoin Sold
Dec 22, 2022: 704 BTC ($11.8 Million)
Why sell?
MicroStrategy sold the 704 $BTC for tax benefit. To prove this, they bought 810 $BTC two days later.
5. Strategy
What's the strategy?
It's not Buy Low, Sell High. It is seen in the data that the company keeps buying in big chunks even if the price of #BTC is rising. Also, the company only sold once and not even 1% of its holdings.
Generally, this is a Buy and Forget strategy. But what makes this strategy effective is the CONSISTENCY. MicroStrategy is consistently buying #Bitcoin whenever they can.
Their strategy is simple and can be replicated. No fancy, no complexity - just CONSISTENCY.
