Robert Steinadler, 2 months ago

MicroStrategy did it again! The company owns 140,000 Bitcoin

MicroStrategy buying more Bitcoin is not breaking news as this comes as no surprise. For over two years the company has followed its plan and kept to it strictly. That means investing in Bitcoin as soon as more money is available from the cash flow MicroStrategy is creating. This had not always led to a net positive outcome since they bought most of the stack at high prices.

What is the average price MicroStrategy paid per Bitcoin and how did the market react to the news?

The biggest Bitcoin stack

MicroStrategy holds the biggest Bitcoin stack of all companies in the world if we exclude cryptocurrency exchanges. With the recent acquisition of 1,045 BTC, the company holds a total of 140,000 Bitcoin. That puts the average price paid per Bitcoin at $29,803. MicroStrategy spends a total of $4.17 billion on Bitcoin.

This puts the company in an interesting position. Not only is it the entity with the largest publicly known Bitcoin holdings but it is also close to breaking even. Some analysts dared to pronounce MicroStrategy dead in late 2022 when the price fell below $20,000.

Back then Michael Saylor had to explain once more that MicroStrategy could tolerate a drop down to $3,500 and still be solvent. Should they break even on the position critics would be silenced proving the success of the daring strategy.

Bitcoin recovered in Q1 2023

It remains to be seen if MicroStrategy gets lucky. Bitcoin recovered and so did the rest of the market in Q1. This success story is culminating in face of the latest events. Some analysts believe that the Fed could soon be forced to pivot which could create the stage for another bull run. Others argue that this could be a local top and that the Fed isn’t afraid to crash all markets.

No matter how this is going to play out, MicroStrategy is immune to such short and mid-term effects. Dollar-cost averaging is one of the most effective investing strategies available. Time in the market always beats timing the market. With a market as volatile as crypto this is even more true because timing it is more difficult.

Therefore, it is safe to assume that the company will continue no matter what to accumulate more Bitcoin over time and convert all of its surplus cash in the future. Should the market cycles repeat themselves the value of MicroStrategy will explode due to its exposure to BTC.

Featured image: © DCStockPhotography /

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