According to the latest data, Microstrategy now owns 190,000 bitcoins, acquired at an average cost of $5.96 billion. Currently, the value of the company’s bitcoin assets is estimated at $9.88 billion. This means that the current return on the company’s bitcoin portfolio has increased by 66%, which is a stark contrast to its performance just eight months earlier.
Last summer, Microstrategy’s bitcoin assets amounted to only 140,000 BTC and were valued at $3.631 billion, with an average purchase price of $4.206 billion. This discrepancy between value and cost indicated a net loss of 14% on their investments.
Some have noted that if the company had decided to buy Ethereum (ETH) instead of bitcoin in June 2023, it would have earned 54% more in returns. Despite the current success of Microstrategy’s bet on BTC, it would have been more profitable to use an ETH portfolio.
Currently, if the firm had purchased Ethereum, Microstrategy’s assets would be worth $12.912 billion, or the profit would have been $6.946 billion. This does not include the profit the company could also have made from deploying the held assets if the portfolio were exclusively based on ETH.
It is well known that Michael Saylor and his company will not change their course and choose this particular path, and the hypotheses discussed are simply based on the blockchaincenter.net index “There is no second best.”
However, during the last trading day on Thursday, MSTR shares fell by 6.7% against the US dollar. Despite Thursday’s downturn, the shares have risen by 14% over the past week and by 49% over the last month. Mike Saylor’s company currently owns the largest amount of BTC of all companies listed on the exchange, except for GBTC.
I have always been amused by traders’ taunts when Saylor once again bought a new batch of bitcoin immediately after a price increase. They say, who does that? You need to buy the dip and sell at the highs.
Or they say he should have bought Solana, Ether, or something else. Such a policy is very good in theory. In practice, Saylor has not lost anything, but his critics have lost a lot. Moreover, his strategy is not about earning, as it may seem to many.
He aims to acquire as much of the planet’s most scarce financial asset as possible. And if someone doesn’t understand that, we’ll see in the future. Not in the distant one. Meanwhile, Saylor just smirks at your deep investment knowledge and unmatched analytical abilities.