There's a lot of info out there going over how to best invest, new ways to invest and just a endless amount of data, charts and people talking about it to get you to the ultimate wealth stage.

But is it really all that complicated or is it rather simple?

If we look at MicroStrategy aka now Strategy we see a clear cash to crypto at the start of what they were doing. This accumulated the company an over 200,000 BTC stock pile that has only been snow balling larger as time moves on. The company at the time of writing this has nearly 500,000 BTC in total just a staggering amount.

This is primarily done via convertible notes which allows the company to move faster with larger funds to ape into bitcoin. A convertible note is a debt security (loan) that you (as an investor) can convert into shares of issuing company's common stock.

The company is also now targeting a 42 billion dollar of which 21 billion will be equity into the company and the other 21 billion into fixed income. That's essentially double what the company currently holds in just bitcoin reserves.

But it begs the question with a single company holding so much bitcoin what's ever holding them back from a massive sell off of the asset or being forced to sell it off the the company should go bankrupt or they are pressed to raise funds quickly if things should ever go south. That would have a major impact on the bitcoin asset.

The company as of December and January has also been buying up bitcoin at a rather steady pace on a weekly basis this prediction of markets is a trend that traders start to take note of and will often make trades just before the company buys happen to try and game the system.

This however brings to light the most established investment strategy ever and that's the simple DCA or Dollar Cost Averaging where no matter the price of the asset at the time you simply buy in the same dollar amount. This can be done as often as you like a daily, weekly ever two weeks or monthly investment but in most cases a daily would more evenly play you out for the markets. Which makes me think I'm actully curation what the results would be if you invested daily, weekly or monthly and what the differences in profits would have been between each. Saving that for another day!

Other Companies

Other companies are starting to see the massive wealth that Strategy has been able to accumulate through their buying and have also started to jump on board. Even though we are seeing prices level out in the $95,000 range for bitcoin we are seeing more and more buying and holding of the asset happening.

We also are seeing companies like Rumble a video platform buying up and building bitcoin reserves as well so all of these major companies are now starting to DCA into bitcoin which is starting to keep the price at some normal levels.

To me this spells out a launch pad for the next bull market rally of the asset

Posted Using INLEO