Despite Bitcoin's Significant Price Drop, Michael Saylor's Strategy Remains $7.8 Billion in Profit

once a software intelligence firm, has become one of the largest Bitcoin investment giants. Despite Bitcoin's significant price drop in recent weeks

Microstrategy (NASDAQ:MSTR) has become one of the largest Bitcoin investment giants, initially known for its software intelligence technology. Despite Bitcoin’s significant price drop in recent weeks, the company still reports a profit of $7.8 billion on its massive Bitcoin stash.

As of March 10, Bitcoin (BTC) saw its largest weekly decline on record, losing 13.6% in value, dropping from highs of $93,379 on March 3 to lows of $80,610 by March 10.

Though Bitcoin has since rebounded somewhat to $82,000, it marks a notable correction in the market. However, even with this downturn, Microstrategy’s Bitcoin investments are still in the green.

Microstrategy’s Profitable Bitcoin Strategy

The latest data reveals that Microstrategy holds 499,096 BTC, acquired at an average price of $66,423 per token. At present prices, these holdings are valued at around $41.2 billion, indicating a 24% unrealized gain, despite the recent market volatility.

A key factor attributing to this success is the company’s dollar-cost averaging (DCA) strategy. This method involves spreading investments over time, rather than making a lump sum purchase.

By doing so, Microstrategy has been able to accumulate Bitcoin during both highs and lows, which has helped the company stay in profit even when market prices experience sharp fluctuations.

Importance of Dollar-Cost Averaging

Microstrategy’s Bitcoin holdings are a prime example of how dollar-cost averaging can be an effective investment approach, especially in volatile markets like cryptocurrency.

Instead of trying to time the market, Microstrategy’s consistent and strategic purchasing over time has allowed the company to build a sizable Bitcoin portfolio at favorable average prices.

While other companies may be reporting losses due to poor timing in their attempts to capitalize on Bitcoin’s price movements, Microstrategy’s approach has enabled them to benefit from Bitcoin’s long-term upward trend, while minimizing the risk of significant losses during short-term market dips.

Not All Bitcoin Investors Are in the Green

However, not all companies that entered the Bitcoin market at a later stage have been as fortunate.

According to BitcoinTreasuries.NET, Semler Scientific (NASDAQ:SCIX), a company focused on healthcare and software technology, has seen some losses on its Bitcoin holdings. The company bought 3,192 BTC at an average price of $87,850.

As Bitcoin dipped below the $81,000 level, Semler Scientific’s BTC is now valued at around $262 million—showing a 6.25% loss from their initial investment of over $280 million.

Similarly, Metaplanet, a company often referred to as “Asia’s Microstrategy,” is also in the red on its Bitcoin holdings. The company began purchasing Bitcoin in April 2023, accumulating 2,888 BTC at an average price of $83,049.

With Bitcoin’s recent correction, Metaplanet has incurred an unrealized loss of over $2 million, or nearly 1%.

Recent Purchases and Unrealized Losses

In addition to its earlier acquisitions, Microstrategy has been actively purchasing Bitcoin since November 2024. According to blockchain analytics firm Lookonchain, Microstrategy has spent $23 billion on Bitcoin during this period.

However, with Bitcoin’s recent price drop, those BTC holdings are now valued at approximately $20 billion, reflecting an unrealized loss of over $3 billion on these recent acquisitions.

While the recent price dip may have caused some temporary setbacks, Microstrategy’s overall portfolio remains in the green, thanks to their earlier purchases made at much lower prices.

Despite Bitcoin’s significant volatility, Microstrategy’s disciplined investment approach, combined with its reliance on dollar-cost averaging, has ensured that it remains firmly profitable.

Though the company is not immune to short-term price fluctuations, its ability to withstand market downturns and maintain gains on its Bitcoin holdings highlights the value of strategic, long-term investments in an emerging asset class.

As Bitcoin continues to experience swings in value, companies like Microstrategy, which have adopted a steady and calculated approach to accumulating Bitcoin, may continue to benefit in the long run, while others may struggle with the unpredictability of the market.