This Company Just Bought $1.4 Billion of Bitcoin. Should You?
From Nasdaq
May 1, 2025 7:30 am:
Strategy (NASDAQ: MSTR) recently purchased over $1.4 billion of Bitcoin, signaling confidence in its value. However, it’s essential to evaluate their approach before following suit. The company now holds around $52 billion of Bitcoin, equivalent to 2.6% of the total supply, purchased at a rate of 2,087 bitcoins daily.
Despite Strategy’s strategy, there is a compelling investment thesis for Bitcoin. With a limited supply of 21 million coins and increasing demand from governments and corporations, the competition for existing supply grows. While there are risks, such as large holders affecting the price, Bitcoin’s ability to maintain purchasing power as a hedge against inflation is noteworthy.
Consider investing in Bitcoin for the long term. Implement a dollar-cost averaging plan to gradually build a position. Although Strategy’s plan may impact shareholders differently, the scarcity of Bitcoin will remain a key factor. The Motley Fool Stock Advisor team did not include Bitcoin in their top 10 stock picks, emphasizing the potential for other stocks to deliver significant returns.
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