Look, I know I am late to the party.
I remember covering the news of MicroStrategy’s first bitcoin purchase, and I’ve watched the stock rise from $14 to $400 per share. All that time, I didn’t buy.
Yet, this past Friday, for the first time since 2018, I bought stocks — specifically MicroStrategy (MSTR) and a couple other companies also holding bitcoin on their balance sheets. It was something I never thought I’d do again.
In 2018, I sold all my stocks for more bitcoin when the price crashed into the $3,000 range, and I have not purchased any other asset than bitcoin since then.
That changed this week. I was reading this interesting thread from Jeremy Garcia, founder and CEO of Satoshi’s Journal, and he was summarizing MicroStrategy’s Q3 2024 earnings call from earlier this year. It made me come to some realizations.
First, if bitcoin is going to succeed in reaching 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 trading in the Nasdaq 100 Index, and has the future potential of joining the S&P 500.
A strategic bitcoin reserve strategy has the potential to make MicroStrategy one of the most, if not the most, valuable company in the world, and MicroStrategy is only going to continue to buy more bitcoin, according to Michael Saylor himself.
If MicroStrategy is to become the world’s most valuable company, then their stock price today would be extremely undervalued to what it would be at that point in the future. Why wouldn’t I buy some? I already feel dumb enough for not buying any. Sure my bitcoin has performed extremely well, but MSTR has outperformed bitcoin.
I know I could just buy spot bitcoin, and maybe that’s the safest play to make. But I’ve also been accumulating bitcoin for a long time, and am interested in allocating some capital to buy shares in companies also betting on bitcoin’s future success.
I would be earning more fiat that 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 take profit and use it for life expenses.
Another thing in the back of my mind is, what if something unforeseen happens in the future and I mess up and lose my bitcoin stack due to a personal error.
I’ll admit, I have anxiety knowing that even though I have thought out my bitcoin custody, and taken the necessary steps to properly secure my coins, something could still go wrong.
In this way, the thought of having some other assets to fall back on just in case is a positive.
Look, I’m bullish on bitcoin. And if bitcoin succeeds then I think the companies, individuals, and countries adopting it will likely succeed as well.
I love winning, and want to get some exposure to companies also winning big. If I am wrong on these bets then so be it, it’s only a small allocation to my overall portfolio. But the potential upside is worth the time and risk I think.
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. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
