I came across an intriguing chart today! 🤔

in btc •  21 days ago 

I came across an intriguing chart today! 🤔

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MSTR’s Dollar Cost Averaging Strategy
MicroStrategy (MSTR) has been consistently purchasing Bitcoin (BTC) using a Dollar Cost Averaging (DCA) strategy. According to the chart from SaylorTracker, despite Bitcoin's recent price hovering around $100k, the company has shown no hesitation in continuing its BTC acquisitions.

As a result, MSTR's average BTC purchase price currently stands at $60k, which is notably lower than the current market price. This strategy demonstrates their strong belief in Bitcoin's long-term value.

Concerns About Leverage
However, there’s another side to this story. I've heard that MicroStrategy has issued convertible and corporate bonds to fund their BTC purchases. While I don’t have the exact details of these bond sizes, it raises concerns about the potential risks associated with leverage. If Bitcoin's price were to drop significantly, the high level of debt could lead to a financial reckoning—a possible "death spiral" scenario.

This highlights the delicate balance between bold investments and financial stability.

What are your thoughts on this strategy? Could it pay off in the long run, or is the risk too great?

btc bitcoin mstr spot etf
21 days ago by

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