MicroStrategy’s Bitcoin DCA Strategy Yields 62% Return

• MicroStrategy chose DCA over timing the Bitcoin market.
• The investment firm bought 252,220 Bitcoins over 40 installments.
• MicroStrategy has registered an overall profitable return of up to 62%.

Crypto market analysis platform Simply Bitcoin has pointed out MicroStrategy’s Bitcoin buying pattern, showing the investment giant has bought over $10 billion worth of Bitcoins in the last four years.

In a post on X, Simply Bitcoin observed that MicroStrategy chose the dollar-cost averaging (DCA) investment approach instead of trying to time the market in its Bitcoin journey.

MicroStrategy is said to hold more Bitcoin than any other public company. While analysts believe the firm’s investment pattern involves a unique strategy of raising debt capital and using it to purchase Bitcoin, the number of BTC buys and timing suggest there’s more to MicroStrategy’s investment pattern.

MicroStrategy’s DCA Approach Proves Profitable

Notably, the leading investment company bought 252,220 Bitcoins over 40 installments in the past four years. Simply Bitcoin highlighted that MicroStrategy started using the DCA; dollar cost-averaging, method in August 2020 and has followed the pattern consistently. According to the analysis platform, MicroStrategy has seen an overall profitable return of up to 62%.

Read also: MicroStrategy’s Bitcoin Bet Continues: $700M Debt Offering for More BTC

To clarify, dollar-cost averaging is an investment pattern where you make regular purchases of an asset at intervals, regardless of the price. This investment idea aligns with MicroStrategy’s Bitcoin purchase structure, as shared by Simply Bitcoin in its recent post.

Details from the shared data show MicroStrategy bought Bitcoins during both the bullish and bearish seasons of the crypto market. The leading crypto market investment firm bought BTC 18 times between 2020 and 2022, spanning Bitcoin’s low and high prices.

Simply Bitcoin further revealed that MicroStrategy was down 50% in its holdings at the beginning of 2023, which was the leading investment firm’s lowest point since it started investing in Bitcoin. However, a resurging Bitcoin market in 2024 means MicroStrategy recovered from the downtime and moved into significant profit.

Read also: MicroStrategy Raises $875M in Convertible Notes, Eyes More Bitcoin

Bitcoin traded for $63,622 at the time of writing, according to data from TradingView, while MicroStrategy’s average BTC purchase price is reportedly $38,585 per Bitcoin. Considering the evidence of the investment returns, the firm’s approach reflects a profitable way of investing in the volatile digital asset, especially with analysts predicting higher prices for Bitcoin.