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Michael Saylor’s Strategy Loses $3 Billion in 4 Months: Worst BTC Purchases Yet?
Michael Saylor, the CEO of MicroStrategy, has been aggressively buying Bitcoin (BTC) for his company’s corporate treasury since August last year. The strategy, dubbed “Dollar-Cost Averaging” (DCA), aims to average down the price by continuously purchasing BTC at various levels. However, despite Saylor’s conviction in Bitcoin, his recent purchases have resulted in a staggering loss of $3 billion over the past four months.
As of March 31st, MicroStrategy’s Bitcoin holdings are in deep red, with significant losses across all purchase periods. These positions will likely remain in deep red unless Bitcoin sees a significant upward recovery, as indicated by the total dollar-cost average (DCA) trendline, which is still below the most recent purchase levels.
It is essential to highlight that these losses highlight the dangers of aggressively DCAing during periods of peak bullish sentiment, even if one is in it for the long run. Recent actions seem more speculative and expensive, and Saylor’s conviction and the strain on MicroStrategy’s balance sheet may worsen if Bitcoin does not swiftly rise back above the $90,000-$100,000 range.
It will be crucial to follow the performance of these purchases and assess whether DCA remains an effective strategy for the company.
Source: https://u.today/michael-saylors-strategy-loses-3-billion-in-4-months-worst-btc-purchases-yet
