Carchidi Doubles Down on Bitcoin Amid Saylor's Sales

Despite Michael Saylor's strategy of selling some of MicroStrategy's (MSTR) Bitcoin holdings, which added to investors' fears that a larger sell-off was impending, Alex Carchidi says he's doubling down on buying more BTC. In August, the company sold 3,328 BTC for $213 million over two weeks ending Aug. 9, but this sale didn't dampen demand for the digital asset.

According to Carchidi, buyers snapped up hundreds of millions in sales, and BlackRock's iShares Bitcoin Trust brought in more than $1.5 billion in net inflows during the 10 trading days ending on Aug. 31. This was outpaced by spot Bitcoin exchange-traded funds (ETFs), which took in more than any other single buyer disclosed that week.

Bitcoin's price rose 21% during the month, and Carchidi notes that Strategy's sales don't change the fundamental properties of the protocol, where its value comes from. He believes that buying up a lot of Bitcoin can stimulate higher prices if most of its supply is held rather than sold, but selling some of its hoard only briefly adds to the available supply, which pressures the price downward.

As for whether investors should buy stock in Bitcoin right now, Carchidi advises considering the long-term view and not focusing too much on Strategy's sales. He also mentions that The Motley Fool Stock Advisor analyst team identified their top 10 picks for investors to buy now, but Bitcoin wasn't among them.