MicroStrategy's 'Buy and Hold” Approach Shows Long-Term Confidence in Bitcoin's Value

Michael Saylor aims to promote Bitcoin as a global treasury reserve asset. The company’s Bitcoin strategy outperformed tech stocks, gold, and real estate.

Bitcoin (BTC) bull and MicroStrategy CEO Michael Saylor has unveiled the company’s core principles for its Bitcoin investment approach, revealing a “buy and hold BTC indefinitely” strategy among the nine principles.In a tweet on Feb. 27, Saylor shared the vision behind MicroStrategy’s exclusive commitment to Bitcoin (BTC), outlining nine principles that guide the company’s strategy to maximize value and promote Bitcoin’s role as a global reserve asset.

“$MSTR is in an exclusive relationship with $BTC,” the MicroStrategy CEO stated alongside a snapshot of the company’s principles for its BTC investment approach.

The principles include commitments to buying and holding Bitcoin indefinitely, making Bitcoin a material part of MicroStrategy’s portfolio, and aiming to maximize value through BTC. MicroStrategy also plans to continue growing responsibly, aligning with market dynamics.

Furthermore, the company aims to achieve positive Bitcoin yields through continuous acquisitions and intelligent use of its assets to outperfom BTC and maintain a strong balance sheet, Saylor noted.

“We also aim to promote Bitcoin’s global adoption as a treasury reserve asset,” the MicroStrategy CEO added, highlighting one of his core missions.

Saylor’s strategy also includes principles to promote Bitcoin’s global adoption and treasury reserve asset status, aiming for a factor of 25x return on MicroStrategy’s BTC holdings over ten years. Finally, the company plans to issue innovative fixed-income securities backed by BTC to strengthen its balance sheet further.

MicroStrategy’s strategy with Bitcoin has been paying off handsomely, with the company now owning over 252,220 BTC, making it one of the largest institutional holders. This holding is now valued at around $18 billion.

The company’s strategy differs from other institutions that typically sell shares to raise capital for buying more Bitcoin. Instead, MicroStrategy uses debt through bonds and notes to buy more BTC. However, this method allows them to grow their Bitcoin holdings without affecting shareholder value.

This strategy has delivered impressive returns, even outperforming top tech stocks as well as traditional assets like gold and real estate in recent years.

Recently Saylor announced that MicroStrategy plans to keep growing its Bitcoin yield, aiming for a steady increase of 6-10% each year.

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