Bitcoin Forum

Greetings to Everyone, The company MicroStrategy whose Bitcoin assets total 1lac 52thousands 8 Hundred made a profit of $22.2 million in the second quarter of this year. This is a big change from the loss they suffered last year 2022.
In July Month of 2023 they spent $14.4 million to buy 467 more Bitcoins which changed their profit compared to last year because their digital assets had a smaller loss in value.

https://i.ibb.co/YtVKzqX/20230805-055316.jpg (https://ibb.co/194pDwM)

I aslo think Investing in Bitcoin was a good idea for MicroStrategy, as its price increased a lot. MicroStrategy used their own money to buy more Bitcoins and they believe more big investors are becoming interested in Bitcoin. They plan on selling some of their stocks in order to get more money to buy more Bitcoins in the future.

https://i.ibb.co/r3vQFcr/20230805-063857.jpg (https://ibb.co/hcCgLZz)
Source (https://cointelegraph.com/news/microstrategy-earnings-profit-second-quarter-bitcoin)
Cryptocurrencies like Bitcoin have been increasing in price since 2023, and they are now worth around $29,206 which is good for MicroStrategy.
Is MicroStrategy success with Bitcoin a sign that more companies will invest in cryptocurrency?

MicroStrategy is a very strongly convincing example of successful DCA practice. They have been doing Dollar Cost Averaging many months since 11 August 2020, nearly exactly three years ago.

Details of MicroStrategy DCA Balance Sheet (https://bitcointreasuries.net/entities/1)

You can make estimations for your DCA plan with https://dcabtc.com/ or can create accounts on Coinmarketcap.com (https://coinmarketcap.com/), Coingecko.com (https://www.coingecko.com/) to simulate DCA and see results.

MicroStrategy has made huge profit from bitcoin and been the most successful bitcoin investor in the market. As he always use DCA method to exploit the market by buying at dip. He recently bought a good significant amount of bitcoin and I know that his company will make great profit in the next bull run. He is a die hard bitcoin fan based on how he invest deeply into bitcoin and sold some of his stocks. This is a good example for one to emulate in the way he buys and hodli. MicroStrategy is giving more people confidence on bitcoin since he is among the whales in the market.

Good for them! Now, if only they can actually increase their annual cashflow instead of just being a de-facto bitcoin ETF stock.


Doesn’t work that way. I doubt all these companies would be like “omg MSTR is now profitable on their bitcoin holdings, we should buy some too!”

I can't say that the MicroStrategy's investment in bitcoin is a sign that more companies will invest in btc, but the MicroStrategy's actions have undoubtedly already attracted the attention of large institutional investors and are an example to follow. Nobody can be indifferent to how someone makes huge profits on investing in bitcoin and other companies want it too. Seeing a MicroStrategy divest its shares and buy bitcoin with the proceeds, other investors may follow suit. This can create a chain reaction effect where institutional investors start buying btc one by one. The result of this is what the effect on the cryptomarket will be, you know.

The actions of the MicroStrategy with bitcoin are something like advertising for the cryptoindustry. As long as they buy. It would be interesting to see what will happen if the MicroStrategy starts mass selling bitcoin. This will have to happen sometime, and that is why the MicroStrategy buys bitcoin. Otherwise, they will not make a profit. And here, the concentration of a big amount of btc in the hands of one whale can play a cruel joke.

I don't know, I don't really get the idea that they talk about profit when it's unrealised profit. Although they have a huge amount of bitcoins on their balance sheet and it is obvious that it has to be reflected in the accounts, but in the stock market it is said that you don't win or lose until you sell, because you can think that you are making a profit with some shares and the day you go to sell there is a downturn in the market and you are in a loss.


I would expect something like that, that in order to talk about profit or loss they would talk about the business intelligence of the solutions they sell.

What? They are the worst for DCA. Don’t know if you remember but they got a very good average buying at the $10K mark before the large bull market.

Their issue was they kept buying as it was rallying. They were lucky with many of their buys but they started to buy the top pretty much. Instead of buying less they were buying more and more and their average price of $11K became like $35K very quickly and they were at a loss. They had a horrible DCA strategy.

Horrible? Do you have a crystal ball to know how the price will evolve? If bitcoin goes to a million or more in the future, doing DCA at $35,000 is a bargain, and as the price goes up, the average price of your DCA is likely to go up as well.

I don't know if you were the one who stopped buying when the price went to $69,000 because you were the only one who knew the price wasn't going to go any higher this cycle, when all the predictions were for a much higher price peak.

Tell me something, when the price in the future reaches one million dollars, what would you rather have, one bitcoin bought at $11,000 or 10 bitcoins bought at $30,000?

The point of DCA is to actually continue buying regardless of what the price is. Their strategy just comes of as “worst” simply because we already saw what happened with BTC’s price from the time they bought, to today. Hindsight is 20:20.

And I don’t even think they’re actually doing actual DCA — they seem to be just buying when they have enough cash.

If the other companies see Microstrategy’s big profits, they will definitely get jealous and wanna bite from them profits. MS is doing a good job investing in btc because of this. Tesla did the same thing too. I don’t know the last updates on this but I remember that Elon said they are not going to sell the remaining btc Tesla holds. Maybe we will see Apple or Amazon making an investment in bitcoin too. If Tesla did it, the other FAANG companies can do it as well.

Does MicroStrategy invest in something other than Bitcoin? MicroStrategy is considered a proxy for companies to invest in Bitcoin so that there is an option to invest directly in Bitcoin through ETF funds. The share price is a direct reflection of investment in Bitcoin.

Their purchase of Bitcoin is mandatory because without it they will not be able to maintain the price of their name so they have no choice but to invest in more Bitcoin.


https://talkimg.com/images/2023/07/28/QhvQq.png



We have a long thread with all the news about MicroStrategy, you can find it here https://bitcointalk.org/index.php?topic=5268108.0

Microstrategy could have made profits from bitcoin investment and still have more opportunities to make more because it has made some decisions that could turn in favour of their own interests, yet you must not forget the fact that we shouldn't concluded that microstrategy is the most successful bitcoin investor, if you have a Link to ascertain this you can provide.


Everyone i believe has one of his ways used in bitcoin investment which is well yielding results to them, DCA method is one of their best way of investment which they think allow to cut lost that could have been much on their investment when planning to release at any time

I disagree though, if they have seen the Tesla or MS is making money with bitcoin, then Amazon or Apple could also go pubic and tell that they are investing. But they know how volatile it is, so they are not going to put in their balance sheet just like what MS or Saylor is doing.

And I'm in the conclusion that MS is still break even at $29k++ price of bitcoin right now.

Of course they can make money in the next bull run, but it will be in the next 2 years that big companies doesn't want to take the risk. They would rather have the money right now and move it inside, and not into bitcoin.

once someone or some people know about bitcoin they will tend to embrace it because bitcoin give them benefits and opportunity to gain profits. that was an excellent move by them, also that is what i expected from a big company, there are must be many smart people in this company. I believe that there will be more companies which will join in bitcoin investment. I think the deflation of bitcoin will prevent anyone to suffer financial lost in trading, it's volatile but it tend to rise, maybe be that's the reason why they become so brave and trust bitcoin.

DCA is to avoid questions where are bottoms and tops and doing DCA requires a long term vision for your investment so that you won't feel fearful, panic when you buy at tops. Doing DCA requires regular capital for buying and MicroStrategy have very deep pocket and new cashflow that helps them to do DCA last few years.

I agree that if MicroStrategy have more experience, they would stop buying after a past all time high broke and a new bull run already last about one year. No one can know where is top but the length of a market cycle is nearly the same.

If price breaks $69,000 in 2024 and 2025 bull run, the $35,000 price will be a dream entry of many people.

They can stop buying but maybe they missed the top for profit taking too. It's hard to know where is the top and mostly we only know the tops when price already corrected.

Pretty good news, but I think it glosses over the fact that this was a gamble. Speculation using company reserves, that, at one point, was in real danger of liquidation (even by his own admission). Don't be fooled into thinking this is ever a good strategy for any business to turn a profit from anything else other than what the business was meant to do.

And this is what the mindset of other CEO, this is gamble and they don't want to do is as what Michael Saylor does. Even Elon Musk have to liquidate something, although he has a excuse - but Twitter and needed some funds.

So for governments like El Salvador, it's really a risk and that's what the critics of Bukele to proved specially we are in the bear market. So in order for Saylor and his MicroStrategy to be profitable, he just have to wait for the next bull run and see how high it will go.

Agreed MicroStrategy bitcoin investment has indeed caught the attention of institutional investors and potentially leading to a chain reaction of further BTC investments. Their actions serve as a model for others. but the impact on the crypto market remains uncertain, especially if they choose to divest. i think the Concentration of Bitcoin in one entity could pose risks in the long run

Very interesting. If they can start making a profit consistently that could be great for their ability to stack Bitcoin. If the price of BTC does go up to where they are in a great deal of profit, I wouldn’t even be mad if they sold some to use funds to further grow their main business or invest in treasuries in order to keep new dollars coming in to buy more BTC.

MicroStrategy are the ultimate crypto evangelists. They are the masters of DCA and are now reaping the benefits of DCA. Bullish on MicroStrategy, but please leave some BTC for the rest of the global population.

MicroStrategy has chosen Bitcoin as its primary reserve asset by releasing all Bitcoins used as collateral to secure loans and is also one of the top 5 companies that own the most Bitcoins in the world. It's extraordinary indeed, and that I think is inseparable from their belief in seeing Bitcoin as a trading strategy that has the potential to be supported by a digital asset environment that continues to grow, especially now. Well, for me one thing that impressed me was that they (MicroStrategy) integrated Bitcoin Lightning into their company's email address apart from being the main driving force of the market like the previous year.

It is great to see that MicroStrategy is now benefitting from their confidence in Bitcoin. When the market was bearish and there were different predictions of the crash in the price of bitcoin Michael Saylor, was busy buying and promoting the coin.Congratulations to the company and I and the future will still be profitable.

There will always be copycat investors. Some companies specialize in copying the investment strategy or decisions of other companies. Sometimes they make a profit from replicating other companies' financial policies, while they might experience loss sometimes. So I think some companies will consider buying Bitcoin because of the profit of MicroStrategy.

I think @Sim_card means that MicroStrategy is the company with the highest Bitcoin holdings. According to some reports they own about 129,699 BTC in their portfolio.
https://www.google.com/amp/s/www.benzinga.com/amp/content/31211121

Sorry, a bit childish question. I don't understand in this case, isn't MSTR stock a reflection of the valuation value of the company? When they sell large shares even almost change the company's voting rights just to increase the investment value in instruments that are not their "identity", what I imagine is the buyer of the last shares will make the bid price very high if Saylor wants a large number of shares sold back into his hands after realizing investment returns. That's the same as the company does not get any profit. Am I right?

They don't need to, and they aren't (those who consistently do fail a lot, why do you think there are big scadals like FTX? because CEOs gamble).

The point here is, good for MS and Saylor but we don't need that good news for Bitcoin -- if anything it cements Bitcoin's misrepresentation as purely a speculative tool. I don't think Bukele does it the right way, but I also don't think it can be compared to Saylor...

To say they turned profitable is a bit of a stretch. The recorded profit after tax of $22.2m was due to the $60.3 of tax credit they accounted in the 2nd quarter.
Their loss before tax was $38.1m and operating loss was $26.7m including "digital asset impairment losses" (which I'm guessing represents changes in BTC value) of $24.1m.
Adjusting for the mentioned impairment losses, they actualy did a bit worse than in the same quarter of 2022.

Link to the announcement:
https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/microstrategy-announces-second-quarter-2023-financial-results_08-01-2023.pdf