The company’s approach has been quite simple: acquire Bitcoin at different prices independent of the state of the market and retain it as a reserve asset. Due to their consistent buying of Bitcoin during market downturns, MicroStrategy has demonstrated a methodical approach to dollar-cost averaging.
By using this strategy, they can spread out their investments over time as opposed to making large one-time purchases. Their total dollar-cost average thus remains significantly below the current market price, providing them with a buffer against volatility. Timing-wise, MicroStrategy has made purchases at pivotal times in the market, following both substantial corrections and bullish trends.
This strategy is consistent with their long-term view of Bitcoin as a hedge against inflation and a store of value. Significantly the portfolio tracker demonstrates that in spite of a few transient setbacks, the approach has put them in a very profitable position as Bitcoin keeps rising.
The value of MicroStrategy’s holdings could increase exponentially as a result of Bitcoin, which is currently trading at $65,000 and appears to be headed higher, particularly if it breaks $70,000. This is especially significant because it increases demand as more institutional investors view Bitcoin as a real asset class.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
