Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
khiholangkang
on 27/09/2023, 18:01:21 UTC
For instance, MicroStrategy have been buying Bitcoin in large quantity through instant execution (I will call it instant execution because the quantity is not uniform even though they buy often). They really do not consider the price or the dip... they just buy and this shows that they do not adopt the DCA method.

I agree with the other points of your post.Moreno233.

But in the above cited portion, you fairly accurately described what MSTR is doing.. which is that they have been buying BTC fairly consistently based on their own cashflows (what capital they have available) and they do not seem to care too much about price.. they just seem to assume that BTC is mostly going to go up in the long term, even though not really being sure about what BTC is going to do in the shorter term. 

That pretty much is DCA.. even though you said that they are not doing DCA.  Probably the ONLY things different from DCA is that they are trying to front load their investment.. and their increment for buying and/or considering to buy seems to be on a quarterly basis (or at least they report what they did, if they did anything on a quarterly basis).

In MSTR's case, it may well be that front loading really does not make too much if any kind of a difference in regards to their largely ongoing buying of BTC in a kind of DCAing approach... that also might not be exactly on a weekly or monthly schedule, but seems to somewhat be quarterly. .even though there have been some quarters in which they did not buy any BTC.... yet I do believe that they are assessing what to do in regards to bitcoin, if anything, on a quarterly basis.
In short, MSTR makes bitcoin purchases using the DCA strategy approach, because of what they often do, such as purchasing at quarterly time intervals, even though there are several months that they don't fill in (perhaps they also ensure consideration of price, time and capital they have). for bitcoin purchases on several occasions). I understand better the strategy carried out by MSTR by purchasing bitcoin using a DCA strategy approach with a large scope of opportunity, of course they are different from individual investors who carry out the DCA strategy in general.

I hope to understand how to use the DCA strategy and how to approach the DCA strategy.