Bitcoin Forum

MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. 
As of 6/28/22 MicroStrategy holds ~129,699 bitcoins  acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin.

Man trying to DCA with millions.  ;D

This is a good aspect for Bitcoin.  We can see that the use of Bitcoin and the love for Bitcoin is increasing among the people.  But for some FUDs many are giving up interest in bitcoin but I think one day they will regret it.  DCA plays a huge role in cryptocurrency and anyone who invests in compliance with DCA can succeed in Crypto.

That's a seven figure number. It's fair enough for a company.

For any individual a three figure is not bad at all. Imagine someone who is continuing DCA from 2017 or earlier. They also considered selling some at the peak. Again they are buying back in difference price. There will be many who has been doing it from years.

MicroStrategy could be an example that it's never late in crypto.

Is there a link to this news about buying of 480 bitcoins by MicroStrategy?

What will the alarmists say to this, shouting that bitcoin will soon die, will cost 0, and that we need to get rid of the depreciating asset as soon as possible? Oh yes, sell so companies like MicroStrategy buy for ~$20K and then sell like you when it's worth $100K.

They always tweet it and they have done this time: https://twitter.com/saylor/status/1542117682207678465?s=20

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There was speculation on here before that a dump normally happens after microstrategy buys (though they might've bought a dump themselves this time).

I wonder how many buys has it been? Has to be one of the smallest (this was 0.3% of total)... if it's been one of 100 buys yeah, great DCA, otherwise not really heh. Can't say as I don't follow, I'd be coughing blood to buy 0.48 BTC haha

Still, strong hands beget strong hands. I remember your post -- are YOU out of the game already or? ;)

480.. is that all

it must be wednesday

Here's one chart I found from here (https://crypto.writer.io/p/who-else-wants-to-dca-with-bitcoin). You're right that out of all the buys it's pretty insignificant, looks like another "loose change" buy, roughly 10% of quarterly earnings. His strategy isn't really DCA in the context of buying the same amount each time, it's simply based on buying as much as possible. In this case, just a bit of revenue by looks of it. Otherwise known as a "hopium" buy looking at similar small purchases.

https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F77aa8e15-6a63-4f81-9daa-676bdfd7303e_3486x1952.png

Anybody want to start a betting line as to how soon the anti BTC / trolls in general come out of the woodwork with

1) MicroStrategy is manipulating the price posts.
2) MicroStrategy will have to liquidate positions soon posts.
3) MicroStrategy has no more funds to invest posts.

As was posted above 480BTC although out of reach for most people. For a decent sized investment company it is really not that bad.
Nobody for the most part would even notice if a company with their holdings bought $10 million of medium-high risk bonds.

-Dave

This clearly shows how the Bitcoin price went down every time Mr. Saylor bought a "dip". His buying is very stupid as per the norms of an institution.
Won't lie, I have some better buying's as an Individual than his whole org. I wish I had enough money lol.

Good news with microStrategy acquires additional 480 bitcoins and still holding about 129,699 bitcoins, but I think need to know its true or not with MicroStrategy really hold bitcoin until nowadays. But hope give good impact with added 480 bitcoins as investment assets because many people and new company will trust allowed what did by MicroStrategy. Right now just brave company and people want to re invest with bitcoin after price drop drastically from $30,000 become $20,000 on this post created. Will bitcoin back later to higher price and make MicroStrategy reach much profit with bitcoin investment? or have another bad thing with bitcoin will back drop again to lower price.

Not really. He bought consolidation, dips, rallies and tops. He bought it all. He's not buying for price increase this year or next, but for the next decade. If you notice MSTR bought 69K (over half) between $10K and $22K. Apart from a dodgy 19.5K buy above $50K, in 2021 with price above $50K he only bought small increments. Late 2021 he bought 13.5K more, which was probably a bit too optimistic, but as was the market.

The fact that he's currently underwater with an average of $30K while price is undervalued I very much doubt is a concern for him. It's like having an average of $6K in 2018 or 2019 before price drops in half twice after. In the long-term, multi-year time-frame, having a average of $6K was/is pretty decent. Notice that MSTR has been buying Bitcoin for almost two years (since August 2020). The 2 Year MA is around $37K, so he's actually outperformed DCA considerably.

https://lh3.googleusercontent.com/-q9X5TFH1KSA/YryU93R2-4I/AAAAAAAABCw/ExomypOkC-Ie_CrpeQPJYJLWS5esy5lhQCNcBGAsYHQ/s1600/1656526069979371-0.png

There was also talk here about the trouble Microstrategy were going to find themselves
in because of this dip we are in now, theres the answer, trouble averted!

I recon we can be fairly certain Michael bought himself also! Like him or Loathe him,
he definitely puts his money where his mouth is!

Another very good move from the biggest corporate bitcoin holder of the world! That is what happens when small fishes neglect the opportunity of buying cheap bitcoin: the whales take it all and gain more influence on the market, while nothing change at the average fishes' lives. At same time it's a great propaganda for bitcoin to see big money coming in, it's not so positive because bitcoin is getting more centralized on the same investors' hands. 480 investors acquiring 1 bitcoin each would be more interesting than 1 investor acquiring 480 bitcoins alone...

This is not surprising to hear at all when you know it's coming from Michael Saylor, he is going to ride this like a pro.
Saylor is looking Bitcoin as long term investment and he is willing to wait for years or even decades to make profit for him and his clients.
Just listen to any of his recent interviews and you will understand what I am saying.

Personally I feel like there is an insider stuff to the reason this man keep stacking up bitcoin, there is something he's seeing that we all don't know, he has been accumulating bitcoin to the extent that people are making jest of him of recent when bitcoin dumped to 17k, Cz binance tweeted that Saylor will have the last laugh and we all know that Cz also has lots of bitcoin, these whales has some hidden agenda, the rate at which bitcoin is leaving exchanges to personal wallet is quite increasing tremendously

I would do the same for sure. Why the hell not? If I have the money, I understand both the fiat and Bitcoin, I believe in Bitcoin, so why not? And the guy seems to know exactly what he's doing. He's making sure his profits are invested in something that can actually hold its value better than anything else. Better than real state, than gold than stocks, etc!
The only downside is that it's too many Bitcoins in the hands of a single person.

its only 480, its small pocket change in the big scheme of his pockets. holding 130,000

.. as to insider/seeing what others dont see.

well. people do see. we see thousands of businesses in wait, waiting to start ETF businesses.
we see people adding more services and features.
we see that the dip will phase out and its in the cheap zone of this 2020-2022 era of the 4 year cycle
we see we are at the start. many businesses are lobbying regulators to get their act together to create frame work to operate in bitcoin.
people want to put their future retirement portfolio into bitcoin. this means they want to hoard long term for years/decades(waiting for regulatory frame work so they can have a legal vessel of etf to put their retirement contract/plans into)

its not the end of bitcoin, its still the beginning

I disagree. Microstrategy is an example on how not to invest in the cryptospace. The investment holds 129,699 coins with an average price of $30,664. This is a loss of $1 billion on an asset that has pumped 4x since March 2020.

It will also not only be about the loss on paper at present. Microstrategy will be reporting this loss in their monthly income statement. It is very head shaking what he has done.

Good to see a big name taking advantage of the ongoing Bitcoin price dip. In fact, I would say that this is one of the best times to get into Bitcoin as it is now having a good chance of reversing the downtrend of the price. I am hoping that this can be sending signal to other institutional investors to open up their wallets so they can acquire more BTC at a good price.

This is the best time for DCA, MicroStrategy applies it perfectly, the company's policy can be described as the policy of a company that believes in bitcoin and has foresight at the same time, who believe in bitcoin and have a vision of the future are the only ones who are buying now because they are sure that bitcoin will soon return to make new highs , so they are the winners in the end, even if it seems to the world that they have lost millions at the moment, but this will all change over time. Soon the big companies will regret that they didn't do like Microstrategy.

A positive and optimistic attitude towards bitcoin breaks records at MicroStrategy. Even in times of decadent moods, they still remain loyal fans of this asset. Sailor remains true to his promises that he will continue to invest in bitcoin no matter what the predictions are. This is huge respect, as well as good motivation for those who are on the verge of losing confidence in bitcoin.

In an interview Saylor also emphasized that he isnt afraid of margin call but maybe the need to buy more is for such purpose. And at the same time they've gotnhuge.amount of reserves for this kind of dip. This reserve could also come from the profit made during the bull run.

Positive attitude is same with Bukele, he just doesnt have funds for it.  Its this attitude also that will make them richer after this bear season.

Best move and timing to take advantage the current situation. Although the timeframe of bouncing back of price is unknown yet the confidence is certain.

I'm always amazed how such company do invest in large amount, i wonder what's their timeframe to sell off, is it fixed by month/year or fixed by number/percentage of profit, or etc.

It seems that DCA is the new buzzword of the moment that people have latched onto and repeat regularly now. At present they are likely substantially down on their invested money, as it's probable they bought big chunks of bitcoin when it was at higher value. Big whales like this are actually bad for the average bitcoin user as they have the power to heavily influence the price and most likely ship off their exposure by selling to the super rich who will never sell - which stunts the practical usage of it as a widespread currency in regular circulation.

Still not impact what did by MicroStrategy added 480 bitcoins for re investing and price keep move down today, I think right now have another anonymous investor about bitcoin and not show to public, when bitcoin drop they have opportunity how to make dump because selling with large amount. Need to find other project were brave investing on bitcoin for long term period, exactly when bitcoin still have lower price nowadays and good moment buy back on $20,000. More than MicroStrategy for investing with bitcoin and hold it for long term and waiting after bitcoin reach higher price and need until make new all time high again.

Actually was surprised, I'd have assumed he had a lot more buys than that, definitely not any kind of DCA, considering the 20,000 BTC (thereabouts) purchases he plopped down early on and then repeated en route to the top. Interesting how it seems his bigger buys were near the top, and the pebble purchases were at the dips. Suppose he thought things were gearing up at each big buy.

Just buying as much as possible yeah, though I wonder if he'll start thinking about being more strategic now, with just plain good old actual DCA.

How is it a loss? You should call it maybe a virtual loss. He didn't sell to actually lose anything. So, there is no actual loss. Same goes with El Salvador. The country lost nothing because they didn't sell nothing. 1 BTC = 1 BTC. Same goes if value goes up. They profit nothing unless they sell. That concept only comes to reality when a sell is made!

Well they are worth a billion company and I think the DCA for over a million is a few percentage for what they're worth. They're negative $10k for the average price it was acquired. Michael is an optimistic guy and he believes on what the future may hold for Bitcoin, I'm optimistic too that they may be worth 11 figures Bitcoin company.

even at current prices, (19k today or 20k tomorrow, whatever), plus their uncollateralized btc (over 90k), Microstrategy have more than enough btc for additional collateral to stop any margin calls. Let's not start spreading this mmargin call FUD again, the media tried to run this same fud a few weeks ago and failed miserably  ;)

Smart move! It was expected from Microstrategy. Because they have gone into super bullish mode since a long time now. So it's no surprise that they are trying to DCA. Many people do not understand opportunity even when it is knocking on their door. Those who understand, make big bucks out of the market and rest of the population wait for FOMO to happen!

Even though I do not support institutional investors holding such a huge amount of bitcoins. But from a business perspective, it is a smart move!

Until they sell there are no loss. All BTC are in the wallet. It is safe to say that MicroStrategy is not looking at to sell their bitcoin at a price of $19k or even at $30,664. Perhaps they are looking at an x% gain of their investment before they cash it out or invest it in something else. Big boys do not lose their money but they make more from it when they invest, it's a fact. It's the small guys who are too curious and panic to make an instant decision and later regret.  

Imaginary situation for average people who always like to watch and do nothing.
At a price of:
$60K. Damn! Too much, hack I should have brought when the price was $10k. If it drops to $40k I will buy all. There are no way the price will drop below.
$40k. Shit it's dropping I should wait a few days.
$47k. Huh! Just missed it. Let it go below $40k.
$32k. Holy fuck. Bitcoin will drop more. I will wait.
$20k. Thank god. I did not buy at $32k
$19k. Let's wait few more days.
$40k. Damn it! I will wait for the price to drop again.
$100k. No no! Fuck! Bitcoin is pyramid scheme

If price falls back to $17.6k, they will hope it will fall more to $15k or $12k. It is reasonable waiting but many people will reject to buy if price actually dips to $13k. At that time, if it occurs, they will wait for $5k or $9k and will miss a boat.

If you believe in Bitcoin, let's dollar cost averaging if it has 30% to 40% corrections. From all time high till today, we witness a more than 70% correction. It is a good entry range to buy Bitcoin. Price can fall more but don't call lower price which will be continued by lower prices.

So far, MicroStrategy is known as one of the companies that have quite a lot of bitcoin through their investments. I'm not surprised by the way they invest because they actually have the power to do it, but I just wonder why they have to announce it to the media every time they make a purchase. If every time MicroStrategy makes that announcement, the price of bitcoin goes down, then I just think that they just want to see the market lower rather than increase the hype in the market.

Many people have started to realize that they do not have to rely on a particular institution to invest. MicroStrategi has never always been the biggest bitcoin holder forever because I believe they also need the balance of the company's finances and that only requires them to sell some of it.

That’s fabulous. Look at the average price they have got and its like 50% discounted from the ATH of 69k in the earlier years. Man, if ever bitcoin hits back to that price per bitcoin then boom they could just double their assets and be mega holder institution in the crypto space. Just loving the way they are trying to hold on to bitcoin in such besiege market too. May be that’s the reason they are become so much grand in investment sector.

Problem with us average people that we do not have cash-flow all the time. When you spend money then you need to wait for the next paycheck or make a profit from your existing business to invest in bitcoin. It's better not to go all-in even if the price drops to $14k. Have the cash available, if it drops more and you can accumulate from that insane dropped price. In the mean time sell anything that is not necessary for you to live. Have cash 😉

It all sounds crazy but this is the mood I am in now 😂

I told before that some of us are lucky. We did not have to wait to be in Bitcoin and the price was over $25k

MicroStrategy is just one of the examples, in fact one of the better examples because of it being a company that's got the faith, but I've noticed a pattern over the years that the longer Bitcoin is around, despite hitting these unstable times, which definitely are a hurdle when it comes to getting merchants, and the like to accept Bitcoin. Despite, that Bitcoin over the years, has been given more faith as time goes on.

Take a look around, there's plenty of FUD, but looking past that, I'm seeing more people advocate holding or people willing to buy in at low prices, because they just have this faith that Bitcoin will recover. This sort of mentality was only reserved for a select few a couple of years ago.


This proves to me personally that despite having turbulent times right now, and likely quite a few more in the short term, companies, as well as individuals are still seeing the benefit of investing in Bitcoin, which ultimately increases the chance of mainstream adoption in the long term.

This might be a selling signal from Micro Strategy. Imagine they bought a few thousand of btc at much higher price before but now they just bought 480 bitcoins on a 50% discount rate you said. They should bought more if they think that this is the bottom. I think this is how Micro Strategy shows their beliefs in public but have a doubt at the back of their minds.

The best source for MicroStrategy and information about them buying more bitcoin is always Twitter. They always tweet about the bitcoins they buy and they did the same thing this time. During the bearish phase of any market including bitcoin, there is many of negative news and many people will suffer FUD because of many reasons. While the whales will gather more bitcoins and MicroStrategy is one of them while most people think that MicroStrategy is under pressure because of the falling of the market they buy more bitcoins at lower prices to lower the average buying amount that's the technique they use.

The correct term is called a paper loss and you are correct that the loss is not yet a realized loss, however, this loss will be reported in the company's income statement. This makes the loss appear very real among shareholders and board of directors? What would he tell them? Also, do not forget Michael Saylor's history in investing. He was one of the biggest losers during the internet boom. Microstrategy's investment on Bitcoin now is with a $1 billion loss because of his bad decisions.

Yeah, well, a $1B paper loss or unrealized loss.

Way back when Saylor first started buying Bitcoin, I remember someone on the forum meandering something like, "time will tell if he's a madman or a genius." This is going to depend a lot on the behavior of the Bitcoin price.

As for the shareholders, he will have no problems, as he holds 70% of voting power (https://www.bizjournals.com/washington/news/2021/01/22/bitcoin-microstrategy-michael-saylor-billionaire.html).

I think he can withstand the bear market quite well, but at least part of his argument has been dismantled, and already many people are skeptical of what he says, no matter how well he speaks. Add to that the "borrow against your Bitcoin" which was based on Cefi's, which have been a disaster and we have another blow to his credibility.

I see market whales collecting bitcoin, and accumulating them. Since bitcoin is in limited supply, I thing in future these institutions will launch their own altcoins hedged against bitcoin reserves. Just like how governments launch their products hedged against gold reserves

Michael Saylor is a very strong investor with strong diamond belief in tech and future of Bitcoin.

I would like to point out another viewpoint with which you will not count total value of Bitcoin he has bought so far or value of each buying batch. Let's consider it in Controlled supply (https://en.bitcoin.it/wiki/Controlled_supply) of Bitcoin.

After the reward era #7, 4 more halvings, there will be 164,062.5 BTC available in future supply for miners to mine and get from block rewards. Now, let's compare that number with total BTC is holding by Micro Strategy. If Micro Strategy holds those BTC until that halving, they will own 79% of rest future supply. That is massive guys.

Maybe this can happen. Always there arises question in me, why these large scale companies aren't interested into mining and holding the rewards got through the same time. These companies have the required capital to spend on mining. With time we'll come to know how things gonna work with bitcoin. Only the hard believers are adding more volume of bitcoin to their reserve.

you mean Bitcoin Backed Stablecoins? and their Rates will be equal to Bitcoins  price?  If I understand it correctly. i think it is possible. and some companies even already done it. like RSK SmartChain, and at least one another but I don't remember that's name.. lets see if Microstrategy make its own bitcoin backed stablecoin in future.. but they are acquiring a lot of BTC.

Institutional investors know exactly what they are doing. It should come to no surprise to veteran bitcoiners as well. Now is the right time to make good investment decisions while newbies are selling.

I do not condone the same institutional investors who were spreading fud a few weeks prior in order to scare the newbies into selling their Bitcoin to them at a cheap price. But thats the way things are. Life lesson learned.

Hodl and do not panic. Otherwise someone else will own your coins. ::)

It's the price of course. If today the price of bitcoin was $100k then people would say him a genius if they call them madman now. He is not genius nor madman, he is an investor. An investor do not throw away their wealth. They have strategy and they follow it.

Unlike 99% who think they are highly skilled traders and when price is skyrocketing they make some trades with positive gains against dollar, the real investors analyze the data for longer terms.

The argument is not about the price. It is about Michael Saylor's investment strategy or does he have an investment strategy? It is head shaking that he began buying on 2020 and the investment has a $1 billion loss and bitcoin is up since 2020. Open a chart and mark where he bought. He bought all the peaks. The community keeps cheering on Saylor, however, he might be bringing more danger to the market.

That's what businessmen are doing right now and I hope individual investors are doing the same and not the opposite.

Instead of panicking and being feared, it's better to accumulate now that we are in a bear market because everything is at a cheap price :D. Will you only buy when Bitcoin is at $30,000 again? $40,000 again? $50,000 again? We already know that Michael Saylor is a big advocate of Bitcoin and he will try to buy as much Bitcoins as he can now that we are in a once-in-every-four-year opportunity. On the other hand though, with that huge chunk of Bitcoin his company is holding, I'm curious what might happen if the time will come that he will sell it all.

I would guess that it would actually be like that one day when it happens. This is why I believe that we should be focusing on what "could" happen and not what has happened. "If" the price was 100k right now he would be considered a genius that is for sure, but it "will" be 100k for bitcoin for sure, it is not going to happen to be right now, but it will happen in the future and when that happens he will be called a genius.

Definitely he hasn't been called one right now because of the price fall, but just because he is not called one right now, doesn't mean that he will not be called in the future, those are irrelevant stuff and that is why I believe microstrategy has a great strategy (pun intended).

I don't think you can describe MSTR's strategy as right or wrong yet. Saylor made it clear that the investment is based on a decade long time frame, and otherwise 4-year at minimum, so only by 2030 can his investment be considered as right or wrong. He can otherwise evaluate in 2024. He clearly doesn't care if price goes up by 2x of his average or drops 50%, he just continues to buy more Bitcoin for the long-term.

If he was investing on a time-frame of a year, then sure you could consider his strategy as failed, especially if he sold at a loss, but obviously this isn't the case...

The fundamental is gradually beginning to shift from bearish case to bullish case ,for example the news around previous weeks was this company got liquidated , $250M traders fund also got liquidated etc.
But now the news It is beginning to change with "El Salvador Bought 80 Bitcoin at the price of 19k per Bitcoin, Microstrategy acquires 480" Bitcoin worth $10M, So the general view of this news to me is that we are gradually bottoming out of this crash. Follow the smart money.

I don't understand this microstrategy of a man. What actually was his source of income before the advent of bitcoin?
I asked because I read somewhere that microstrategy bought bitcoin with $50 to $60k. What about those bitcoins he bought then, has he sold them?

What actually is he seeing that many of us don't see? He has seen an absolute future in bitcoin and I am very sure that he is in the right track. This time around, he bought at a very good price.

@KingsDen. In the beginning Michael Saylor bought bitcoins with his own company's cash reserves. This is good. Later, Michael Saylor borrowed money against his company or was it his company issued debt to buy bitcoins. This is okay. The last is Saylor has borrowed money against the bitcoins held by Microstrategy hehehe. What he has done and in the state of this market, I am not certain why much of the people consider him a genius.

In any case, I want his investment to be successful because this will also be good for all of our investments, however, looking at his investment strategy and calling him a genius is head shaking.