š Microstrategy's Bitcoin gamble: Tenfold profits in four years, can you imagine it?
Microstrategy has become a model of Bitcoin strategy since it first bought Bitcoin four years ago, on August 10, 2020. At that time, Microstrategy became the first listed company to use Bitcoin as a reserve asset.
To date, the company has accumulated 226,500 Bitcoins, which are worth up to $13.771 billion at the current market price, with an average purchase price of about $37,000. At the current price of Bitcoin of about $60,500, Microstrategy has achieved a profit of $5.39 billion.
Microstrategy's purchase strategy is very simple and clear. It adopts a passive fixed investment (DCA) strategy, maintaining a relatively stable purchase frequency regardless of market ups and downs. Even when the price of Bitcoin soared to $70,000, the company still insisted on converting funds into Bitcoin. This strategy has a high probability of profit for long-term holding of Bitcoin for investors who do not have a technical analysis background and have limited tolerance for market fluctuations.
However, this strategy also requires investors to have a firm mentality and insist on regular investment regardless of how Bitcoin prices fluctuate. If investors can follow Microstrategy's strategy, this is undoubtedly a sound way to invest.
From August 2020 to date, Microstrategy's stock price has risen by a staggering 1,000%, achieving a tenfold return in four years, which is 16.25 times the return of the S&P 500 (SPX) index. At the same time, Buffett's Berkshire Hathaway Class A shares BRK.A, known as an investment myth, had an investment return of 104.75% during the same period, an average annual return of about 26%, while Microstrategy's annual average return rate is as high as 250%, which is undoubtedly very attractive.
š” Therefore, you must first understand your risk tolerance before investing. Do you want to be stable, or are you willing to take risks to pursue high returns? S&P 500, Berkshire Hathaway, or Bitcoin, Ethereum, what is your choice?
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