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What is MicroStrategy's strategy for purchasing Bitcoin?

avatarPooja KulkarniDec 25, 2021 · 3 years ago3 answers

Can you provide a detailed description of MicroStrategy's strategy for purchasing Bitcoin? How does MicroStrategy go about acquiring Bitcoin and what factors do they consider in their purchasing decisions?

What is MicroStrategy's strategy for purchasing Bitcoin?

3 answers

  • avatarDec 25, 2021 · 3 years ago
    MicroStrategy's strategy for purchasing Bitcoin involves a combination of buying Bitcoin on exchanges and directly from miners. They have a dedicated team that actively monitors the market and identifies opportunities to acquire Bitcoin at favorable prices. They also consider factors such as market liquidity, security, and regulatory compliance when making their purchasing decisions. By diversifying their acquisition methods, MicroStrategy aims to minimize risks and maximize their Bitcoin holdings.
  • avatarDec 25, 2021 · 3 years ago
    MicroStrategy's strategy for purchasing Bitcoin is quite simple. They buy Bitcoin on exchanges using their own funds. They believe in the long-term potential of Bitcoin as a store of value and a hedge against inflation. Therefore, they regularly allocate a portion of their treasury to Bitcoin. This strategy allows them to benefit from any potential price appreciation of Bitcoin in the future.
  • avatarDec 25, 2021 · 3 years ago
    MicroStrategy's strategy for purchasing Bitcoin is similar to that of other institutional investors. They work with trusted cryptocurrency exchanges to buy Bitcoin in large quantities. By purchasing Bitcoin in bulk, they can negotiate better prices and minimize transaction costs. Additionally, they may also explore over-the-counter (OTC) trading for large purchases. This strategy allows MicroStrategy to efficiently acquire Bitcoin while minimizing market impact.