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MicroStrategy's Portfolio Reaching $7 Billion Profit: Details

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Fri, 27/09/2024 - 10:55
MicroStrategy's Portfolio Reaching $7 Billion Profit: Details
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With its Bitcoin portfolio, MicroStrategy is almost ready to achieve an incredible milestone as it approaches a $7 billion profit. Bitcoin is getting close to $7,000,000, which suggests that the company's aggressive accumulation strategy is working. This most recent development is evidence of MicroStrategy's long-term strategy, which has made the company synonymous with massive Bitcoin investments under the direction of CEO Michael Saylor

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. 

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Source: Saylortracker

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. 

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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.

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