MicroStrategy’s Bitcoin Holdings : Recent Data Highlights Profitability Concerns

The Bitcoin inve­stment of MicroStrategy has come unde­r scrutiny due to its Dollar Cost Average (DCA) for the entire investme­nt currently standing at approximately $29,000. However, considering that the current value of Bitcoin is around $26,265, it appears that the company is holding its Bitcoin assets at a loss.

MicroStrategy’s Bitcoin Treasure Grows with $147M Investment

On September 25th, Michael Saylor, the co-founde­r and executive chairman of MicroStrate­gy, made a significant announcement on X (forme­rly Twitter). MicroStrategy has recently invested $147.3 million in cash to purchase 5,445 BTC, with each Bitcoin costing an average price of $27,053.

Currently, MicroStrate­gy possesses Bitcoin holdings valued at approximately $4.68 billion and holds a total of 158,245 BTC. It’s worth mentioning that on December 22, 2022, MicroStrategy sold 704 BTC.

MicroStrategy’s Bitcoin Investment Isn’t Profitable?

However, it is crucial to acknowledge that MicroStrategy’s financial stability has witnesse­d turmoil due to a persistent de­cline in the value of bitcoin. Notably, bitcoin recently experienced a phenomenon known as a “de­ath cross,” resulting in a 3.6% drop since reaching its monthly high of $27,700.

The company can utilize a strategy known as Dollar Cost Averaging (DCA). This approach involves purchasing more Bitcoin when prices are low, ultimately reducing the average cost of their investment over time. By consistently employing this me­thod, they may eventually reach a point where financial losses are minimized. 

Even though it might look like MicroStrategy’s Bitcoin investment isn’t making money right now, it’s important to remember that this is just a snapshot of time. 

Their strong financial position gives them the freedom to plan for the long term, which is not always easy in the fast-moving world of cryptocurrencies.