Look, I know I’m late to the party.
I remember covering the news of MicroStrategy’s first bitcoin purchase and watching the stock rise from $14 to $400 per share. In all that time I didn’t buy.
However, last Friday, for the first time since 2018, I bought stocks, specifically MicroStrategy (MSTR) and a couple of other companies that also have bitcoin on their balance sheets. It was something I never thought I would do again.
In 2018, I sold all of my stocks for more bitcoin when the price fell to the $3,000 range, and I haven’t bought any other asset other than bitcoin since.
That changed this week. I was reading this interesting thread Jeremy Garciafounder and CEO of Satoshi’s diaryand he was summing up MicroStrategy’s Q3 2024 earnings call from earlier this year. It made me come to some conclusions.
First, if Bitcoin is going to manage to reach a price in the hundreds of millions and beyond, then it makes sense to get some exposure to a company that now owns 446,400 BTC, is listed on the Nasdaq 100 index, and has future potential. to join the S&P 500.
A strategic bitcoin reserve strategy has the potential to make MicroStrategy one of, if not the most, valuable companies in the world, and MicroStrategy will only continue to buy more bitcoins, according to Michael Saylor himself.
If MicroStrategy wants to become the most valuable company in the world, then its stock price today would be extremely undervalued compared to what it would be at that point in the future. Why wouldn’t you buy some? I already feel stupid enough not to buy any. I’m sure my bitcoin has performed very well, but MSTR has surpassed bitcoin.
I know I could buy bitcoins for cash, and maybe that’s the safest play. But I have also been accumulating bitcoins for a long time and I am interested in allocating some capital to buy shares of companies that are also betting on the future success of bitcoin.
I would be earning more fiat money which I could then take and buy more bitcoin (if stocks outperform BTC), but even if they don’t, it gives me the opportunity to make profits and use them for living expenses.
Another thing on my mind is: what if something unforeseen happens in the future and I make a mistake and lose my bitcoin stack due to a personal mistake?
I admit, it worries me knowing that even though I’ve thought about my bitcoin custody and taken the necessary steps to properly protect my coins, something could still go wrong.
In this way, the idea of having other assets to fall back on just in case is positive.
Look, I’m bullish on bitcoin. And if Bitcoin is successful, I think the companies, individuals, and countries that adopt it will likely be successful as well.
I love winning and I want to be exposed to companies that also win big. If I’m wrong on these bets, so be it, it’s just a small allocation to my overall portfolio. But I think the upside potential is worth the time and risk.
None of this is financial advice, I’m just sharing my thoughts on what I’m doing as a Bitcoiner. For now, that means I’ll buy MSTR.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
