Microstrategy: Four Years of Corporate Bitcoin DCA

MSTR is one of a kind, but there are lessons to learn from it

Microstrategy is the OG player in the domain of corporate Bitcoin stacking. 

Their journey is nothing short of remarkable: four years of consistent Dollar Cost Averaging (DCA), resulting in an investment of over $8 billion that has now grown to a Bitcoin treasury worth more than $13 billion. This strategy has placed a significant portion of the Bitcoin supply under the control of a single corporate entity.

While Microstrategy's approach isn't easily replicable, they occupy a unique position in the market, there are valuable insights we can glean from their strategy. Moreover, even in an era where spot Bitcoin ETFs are available, Microstrategy remains an intriguing stock for investors.

In today's newsletter, we'll dive into Microstrategy's Bitcoin journey, exploring the factors that have made their strategy successful and the lessons that other corporations and individual investors can take away. We'll also examine why MSTR continues to be an attractive investment option, despite the emergence of new Bitcoin related financial products.

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Microstrategy: Four Years of Corporate Bitcoin DCA

The Takeaway

Microstrategy's four-year Bitcoin strategy offers valuable insights. 

Since 2020, they've pioneered corporate Bitcoin holding, accumulating over 1% of the total supply. Their effective dollar cost averaging has yielded a 75% return so far. 

MSTR stock acts as leveraged Bitcoin exposure, outperforming Bitcoin itself. Despite new Bitcoin ETFs, Microstrategy remains an attractive investment due to its aggressive acquisition strategy. 

This approach offers high potential returns in bull markets but risks steeper declines in downturns. For corporate treasuries, Microstrategy's journey highlights the benefits of early adoption, consistent investment, and long-term thinking. 

Their approach demonstrates both the potential rewards and risks of integrating cryptocurrency into corporate financial strategy. The same simple strategy applies to individual investors as well.

P.S. This post isn’t sponsored by Michael Saylor.

Corporate DCA