MicroStrategy's Bitcoin Rollercoaster: A Tale of Grit, Grins, and Gains

GM Guys and Gals,

Hold on to your hats, because we're about to embark on a thrilling ride through the ups and downs of MicroStrategy's love affair with Bitcoin. You might want to keep a barf bag handy because this story has more twists and turns than your favourite roller coaster!

MicroStrategy, the business intelligence firm with a penchant for Bitcoin, has been on quite an adventure with its crypto investments.

As of December 31st, they held a staggering 132,500 BTC with an original cost basis of nearly $4 billion, reflecting an average cost per Bitcoin of about $30,137 and now, with Bitcoin's price hovering around $28,200, it seems like they're almost breaking even on their massive stash.

But it wasn't always smooth sailing for our fearless Bitcoin buccaneers. During the fourth quarter of 2022, MicroStrategy reported a net loss of $250 million. Talk about a bad case of seasickness! Yet, despite the choppy waters, the company remains steadfast in its "buy and hold" strategy for Bitcoin.

You might be wondering why the company's executives aren't sweating bullets over their rollercoaster-like investments. Well, it turns out that MicroStrategy's co-founder Michael Saylor is more of a long-term strategist than a short-term trader. He's in it for the long haul, and he's not too concerned about the ups and downs of Bitcoin's wild ride.

As Dan Weiskopf, co-portfolio manager of the Amplify Transformational Data Sharing ETF (BLOK), puts it, "Some investors may mark the moment when MicroStrategy's 132,500 BTC is at a breakeven level; I don't think Saylor ever thought that was not a high probability.

In fact, I am confident for him it is a short-term mark and only the beginning of what he expects Bitcoin will accomplish." Spoken like a true believer in the power of HODLing!

Of course, not everyone is as optimistic about MicroStrategy's unshakable faith in Bitcoin. Edward Moya, a senior market analyst for foreign exchange company OANDA, went as far as calling the company's portfolio management "reckless" last June. Ouch! But as they say, with great risk comes great reward—or, in this case, great hilarity.

The moral of the story? MicroStrategy's unwavering belief in Bitcoin is a testament to the power of grit, determination, and a good sense of humour. Because let's face it, you need a strong stomach and an even stronger funny bone to weather the storms of the crypto world.

Here's to MicroStrategy, their Bitcoin rollercoaster, and the wild world of cryptocurrency! May we all find our own way to navigate the thrills, chills, and spills of this exciting ride.

As the crypto world continues to evolve, we will keep you updated on all the latest developments. Stay tuned for more updates from Web3shala.

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That’s it for the day, Web3Shala 👋

To the Moon 🚀