How is MicroStrategy's Bitcoin account calculated? 16% returns over 5 years being "demonized"?

Question

【CryptoWorld】Regarding MicroStrategy's Bitcoin investment returns, there has been quite a bit of controversy recently. Some critics say that based on an average cost of around $75,000, the company's book gains over the past five years are only 16%, which indeed doesn't look very optimistic.However, others point out that this calculation method is actually flawed — it completely ignores the fact that MicroStrategy has been building its position in batches, with prices varying high and low. Such a blanket calculation distorts the actual situation.That said, MicroStrategy's days are indeed not easy. Its stock price has already fallen about 46% this year, but interestingly, the company hasn't reduced its holdings; instead, it has increased its position, recently buying an additional 1,229 Bitcoins. Its total holdings now amount to approximately 670,000+ coins.Looking at a longer time frame, Bitcoin has increased by 219% over the past five years, leaving behind gold's 130% gain. In comparison, early investors have actually made a profit.

fren_with_benefits · Accepted Answer

Oh my, this company is really a gamble on werewolves. The stock price plummeted but they still dare to buy, I'm stunned.

That said, 16% is indeed ugly, but averaging into positions gradually is hard to quantify.

Anyway, looking at the long-term, Bitcoin is over 200 points, so this wave should still be stable.

MicroStrategy's full-warehouse stance this time—either brave or crazy.

A 46% drop and still adding 670,000 coins, how big is that heart? Haha

StableGenius · Answer

honestly the averaging-down discourse here is so predictable... like yeah, they're dollar-cost averaging, but let's not pretend that excuses the fundamentally flawed strategy of yolo-ing into btc as a balance sheet hedge. microstrategy's literally just betting the company at this point lol

gas_fee_therapy · Answer

Still dare to add more after a 46% drop in stock price, this guy really has faith, or maybe he's just a gambler's mentality. Anyway, I don't understand.

ETH_Maxi_Taxi · Answer

Still adding to the position after a 46% drop in stock price? How strong must that mentality be... But on the other hand, the practice of building positions in batches really changes the game, and a 16% algorithm is just nonsense.

The real issue is that MicroStrategy is betting on the long-term Bitcoin trend. How much confidence does one need to dare to do this when the short-term stock price is so weak?

67 million Bitcoins. If Bitcoin ever takes off, recovering the investment might just be a matter of time... But right now, it does look a bit bleak.

GasFeeCrier · Answer

Still willing to add positions despite a 46% drop in stock price—how optimistic does that make you, or is there simply no other choice...

liquidation_surfer · Answer

Damn, someone is calculating again... Building positions in batches and insisting on using the average price—this is just selective deafness.

Honestly, Micro's recent increase is a bit crazy. The stock price has dropped 46%, yet they still dare to pour in more. Either they truly believe in Bitcoin or their brains are water.

16% over five years isn't too bad; after all, Bitcoin's 219% increase is right there.

NFT_Therapy_Group · Answer

The game of calculating accounts really never ends; no matter how you do it, someone will always be dissatisfied.

Basically, it's a gambler's mentality—daring to add more even after a 46% drop. How bold is that?

The excuse of building positions in batches has become tiresome; in the end, it's still the same losses.

670,000 Bitcoins—are they truly driven by faith or just trapped and stuck?

Bitcoin has gained 219% over five years, but what about Weice over these five years... LOL

ContractHunter · Answer

Still daring to add more after a 46% drop in stock price, this mindset is unmatched. Truly believing in Bitcoin.

WhaleWatcher · Answer

MicroStrategy is really betting big this time. They increased their holdings even after the stock price dropped 46%. Are they either very bullish on Bitcoin or gambling on a turnaround like Xu Xiang?

How is MicroStrategy's Bitcoin account calculated? 16% returns over 5 years being "demonized"?

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