MicroStrategy Continues to Invest in Bitcoin — Why You Should Consider BTC a Unique Crypto Opportunity

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MicroStrategy, helmed by Bitcoin mega-bull Michael Saylor, reported fourth quarter earnings to investors and stakeholders on Feb. 2. MicroStrategy revealed a $90 million net loss, according to the earnings report.

See: Fed Rate Hikes Could Lead to Bitcoin Vulnerability, Goldman Sachs Says
Find: Bitcoin and Crypto Taxes in 2022: What You Need To Know

The loss was largely due to Bitcoin impairment charges of $146.6 million and $26.5 million for the fourth quarter of 2021 and 2020, respectively, according to the report. However, MicroStrategy’s positive position on Bitcoin remains apparently unfazed.

“MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per bitcoin As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin,” Saylor tweeted on Feb. 1.

The company said it acquired a total of 53,922 bitcoins in 2021.

Saylor Remains Bullish on Bitcoin

The loss didn’t deter Saylor from his Bitcoin bullishness, however, as he tweeted the same day that “The only thing you will regret in old age is not doing it. – Rudyard Kipling on #Bitcoin.”

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“If you really believe in Bitcoin, then you should always buy the dips. MicroStrategy are a long term HODL’er with high expectations for the long-term price,” Matthew Le Merle, managing partner at Blockchain Coinvestors, told GOBankingRates.  “Michael Saylor has a very long-term view which he is willing to bet his company on. We only wish more American CEOs would abandon short term quarter-by-quarter thinking for a long term value creation mindset on behalf of their shareholders.”

Discover: 10 Major Companies That Accept Bitcoin

Saylor also opined on a Fidelity Digital Assets report — titled “Bitcoin First, Why Investors Need to Consider Bitcoin Separately From Other Digital Assets” — which argues that Bitcoin is fundamentally different from any other digital asset. The report elaborates to claim Bitcoin’s first technological breakthrough came not as a superior payment technology, but rather as a superior form of money. As such, the report adds, as a monetary good Bitcoin should be considered separately from other digital assets.

“Bitcoin should always be considered first,” Saylor tweeted alongside a link to the report.

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“No other digital asset is likely to improve upon Bitcoin as a monetary good because Bitcoin is the most (relative to other digital assets) secure, decentralized, sound digital money and any ‘improvement’ will necessarily face tradeoffs,” the Jan. 31 Fidelity Digital Assets report reads, in part.

Analysts Also Back Bitcoin’s Long-Term Prospects

Brock Pierce, Bitcoin Foundation chairman, told GOBankingRates that “Bitcoin should be a part of every investor’s strategy as they dive into the cryptocurrency space.”

“However, they should also have diversification in mind and explore other Layer 1 protocols and some of the other, newer innovations that are coming along. They should also avoid getting caught up in the ‘meme’ cryptocurrency projects and others that have absolutely no utility or purpose,” Pierce added.

More: Bitcoin by Proxy? Investment Experts Debate Value of Crypto ETFs, Proxies vs. Direct Holdings

The Fidelity report also argues that one of the reasons Bitcoin should be viewed entirely differently from other cryptocurrencies is because of its scarcity — there will only be 21 million bitcoins in circulation.

“No other digital asset possesses an immutable monetary policy on the level of Bitcoin. In other words, Bitcoin’s monetary policy may be viewed as the most credible,” the report suggests.

Bitcoin’s Built-In Scarcity is Attractive to Investors

Adrian Kolody, co-founder of Domination Finance, agrees. Kolody indicates that Bitcoin’s built-in scarcity makes it an ideal long-term investment for storing value somewhere beyond depreciating fiat — and in a system that is controlled by no one individual, company or government but, rather, by code and community.

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“That is an incredible innovation. And it’s an innovation that Michael Saylor of MicroStrategy — the biggest Bitcoin bull of any company in the world — has figured out ahead of the pack,” Kolody told GOBankingRates. Kolody added that this isn’t to dismiss the incredible value of other innovations in the crypto-asset world — indeed, when it comes to Ethereum or Solana or, really, a whole host of them, the rapid advances present huge opportunities for investors.

Learn: Will Bitcoin Struggle Against Rising Interest Rates? Industry Experts Sound Off
Explore: Fidelity Applies for Metaverse ETF As Bitcoin Spot ETF Rejected

“But it’s clear to most people that this sort of innovation is now going in a different direction than Bitcoin. Bitcoin is a monetary asset — it’s digital money or gold, as they say — and so investors see it as a longer-term safer store of their value because of a network that is incredibly resilient and predictable. Bitcoin is a world apart now, and this should be welcomed as a sign of maturity for the entire crypto industry.”

For some investors, companies such as MicroStrategy are a good way to dip their toes into crypto in perhaps a safer way.

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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