As a seasoned crypto investor with a decade of rollercoaster rides under my belt, I find it intriguing to see MicroStrategy mirroring my own cost basis. The parallels drawn by James Check and Glassnode are not lost on me. It’s comforting to know that even a corporate giant like MicroStrategy is playing in the same sandbox as your average Bitcoin enthusiast.
According to James Check, the chief analyst at Glassnode, MicroStrategy’s cost basis for Bitcoin is similar to that of an average Bitcoin investor.
One simple rephrasing for the given sentence could be: The True Market Mean (TMM) metric, provided by Glassnode, calculates the original purchase price for all cryptocurrencies obtained through secondary market transactions.
The company asserts that TMM is among the “most reliable models” out there, when it comes to calculating the collective purchase price from the chain for the top cryptocurrency.
According to U.Today’s report, MicroStrategy boosted its Bitcoin holdings at the start of December, investing a total of $1.5 billion in Bitcoin.
As an analyst, I’ve found that our company’s current average purchase price sits at approximately $58,263, a figure quite similar to the typical investor’s average purchase price, as per the latest data from Glassnode.
From my perspective as a researcher, I’ve found that according to the Mean Reversion Theory, assets typically return or ‘revert’ towards their long-term average value over time.
The metric you’ve mentioned, regarding Glassnode, might serve as a key benchmark in models that follow the concept of mean reversion.
As reported by CoinGecko, the dominant cryptocurrency is being traded for approximately $96,248 right now, which represents a 65% increase in value compared to MicroStrategy’s recent buying price.
2022 saw Bitcoin’s price dipping significantly below MicroStrategy’s typical purchase cost. This temporary situation put the company in a position where its assets were valued less than its liabilities, sparking discussions about possible margin call situations for MicroStrategy.
New findings indicate that even if Bitcoin experiences a significant 80% decrease in price, MicroStrategy may still be able to weather the storm. For the company’s assets to fall below its debts, Bitcoin’s value would need to plummet below $19,000 – a scenario that appears highly improbable.
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2024-12-04 19:10