͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Forwarded this email? Subscribe here for more

Microstrategy: Four Years of Corporate Bitcoin DCA

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

Ecoinometrics

Aug 12

∙

Preview

READ IN APP

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.

The Ecoinometrics newsletter gives you insights from crypto and macro data to help you make better investment decisions.

We spend hours every day gathering data, creating metrics and bringing them to life with data visualizations that allow you to quickly get to the heart of things.

We then distill all that knowledge in each issue of the newsletter with less words and more charts so that you get insights, direct to the point, in five minutes or less.

Join more than 23,000 investors here:

Done? Thanks! That’s great! Now let’s dive in.

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...

Unlock this post for free, courtesy of Ecoinometrics.

Claim my free post

Or upgrade your subscription. Upgrade to paid

A subscription gets you:

	Big picture insights: Understand the market regime and major trends in Bitcoin and macro.
	Spot opportunities and risks: Identify key investment opportunities and risks in Bitcoin and crypto.
	Connect macro and crypto: See how macro factors influence Bitcoin and how Bitcoin impacts the crypto market.