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Look, I know, I’m late to the party.
I remember covering the news of MicroStrategy’s first bitcoin purchase and seeing the stock rise from $14 to $400 per share. All that time I didn’t buy.
Yet last Friday, for the first time since 2018, I bought stocks, specifically MicroStrategy (MSTR) and a couple of other companies that hold bitcoin on their balance sheets. It was something I never thought I’d do again.
In 2018, I sold all my shares for more bitcoin when the price collapsed into the $3,000 range, and I haven’t purchased any other assets besides bitcoin since then.
That changed this week. I was reading this interesting thread by Jeremy Garcia, founder and CEO of Satoshi’s Journal, summarizing MicroStrategy’s Q3 2024 earnings forecast earlier this year. It made me come to some realizations.
First, if bitcoin can reach a price in the hundreds of millions and beyond, then it makes sense to get some exposure to a company that now holds 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 the most valuable, if not the most valuable companies in the world, and MicroStrategy will continue to buy more bitcoin, according to Michael Saylor himself.
If MicroStrategy were to become the most valuable company in the world, its stock price today would be extremely undervalued compared to what it would be in the future. Why shouldn’t I buy some? I already feel so stupid that I don’t even buy one. Sure my bitcoin performed very well, but MSTR outperformed bitcoin.
I know I could just buy bitcoin spot, and maybe that’s the safest move to make. But I have also been accumulating bitcoin for a long time and am interested in allocating some of the capital to buy shares of companies that are also betting on the future success of bitcoin.
I would earn more fiat which I could then take and buy more bitcoin (if the stocks outperform BTC) but even if they don’t, it gives me the opportunity to profit and use it for life expenses.
Another thing on my mind is: what if something unexpected happens in the future and I screw up and lose my bitcoin stack due to personal error?
I admit, I feel anxious knowing that even though I’ve thought about the custody of my bitcoins and taken the necessary steps to properly protect my coins, something could still go wrong.
In this way, the thought of having other resources to fall back on just in case is positive.
Look, I’m bullish on Bitcoin. And if bitcoin is successful, then I think the companies, individuals and countries that adopt it will likely be successful too.
I love winning and I want to have visibility with companies that win big too. If I’m wrong on these bets, so be it, it’s just a small allocation in my overall portfolio. But I believe the potential upside 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’m buying MSTR.
This article is a Take. The opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.