When Would Michael Saylor (MicroStrategy) Sell Bitcoin?

[aoluain]

~snip~
If they ever reached a point where they absolutely had to sell their Bitcoin holdings, it would likely mean a terminal scenario for Bitcoin had already begun.

What kind of somewhat sick obsession is there with whether someone will or will not sell what they bought in order to ultimately make a profit? What's worse is that people think this could be the beginning of the end for BTC, while at the same time most are rooting for MS to buy even more BTC.

No matter how one looks at it, the idea that only one company has so much BTC in its possession is simply bad and BTC should not be used in that way - unless people today think that BTC is just a passing thing that needs to be used as best as possible before it becomes useless?

Microstrategy and Michael Saylor are going to attract attention and speculation
from the Bitcoin community purely because of their financial strategy and the
fact that they HODL so much Bitcoin.

We have seem numerous threads about "What happens when Michael Saylor
dumps all his Bitcoin?". Everyone needs to realize Bitcoin is bigger than any one
person - even Satoshi! Yea the markets will react to a sell off by any big whale
but it will only be temporary.

If anyone is living in fear of such events they would be better off not being in Bitcoin.

If MS had to sell Bitcoin why would we assume it would be all their HODL'ing?
The have over 500,000 of them!

[nelson4lov]

I'm expecting Saylor and Microstrategy to hold off on their bitcoin sales for now till we are close to their bitcoin price targets which is between $250k to $13m. I think they won't sell until we get to those levels because right now, their average is around ~66K. Compared to their risk exposure, that's not much yet. They need more and they're seriously betting that more value will accrue to bitcoin and that the price will go parabolic soon.

[Ziskinberg]

MicroStrategy is still on its buying spree, taking advantage on every price opportunity that would turn massive their bitcoin portfolio. So asking when to sell, the answer would be indefinite. However, I believe they still have a target when to start selling their coins, but for now, their bitcoin accumulation aren’t enough yet for their target company’s growth and progress, so let’s see then.

[topbitcoin]

Don't expect them to do it quickly because looking at Saylor's actions now he is quite serious about what he is doing so that in the end this allows for long-term action because this is not only acting for individuals but also the fate of the company.

So by looking at this I am not too sure that Saylor will change his determination quickly, even though we know we can't fully trust influencers but in the end we can see from Saylor's attitude now even by being a maximalist then he will continue to be in bitcoin until a time that may not even be determined even though there are several possibilities that will happen later.
There are several things that can be considered in this case, especially for the debt problem which can indeed be one of the reasons for selling but as long as they are able to pay I am quite sure Saylor will continue to try to hold this longer even they still allow them to continue to add to their load in the bitcoin portfolio they have.

[GreatArkansas]

I'm curious: If they do not sell some of their Bitcoin in profits and they just keep buying, how will they make money from their invested Bitcoins?
I know they have other products that generates revenue, but how they will make money in Bitcoins if they don't sell?

[takuma sato]

As long as Bitcoin won't fall to the critical price, they're fine. I see nothing special in this case, yet many people used it to FUD.

The scenario of one of the biggest supporters/investors of Bitcoin collapsing is the best theme to FUD the Bitcoin market.  So those who are plotting against Bitcoin or scheming to get Bitcoin price to plummet and then accumulate can use this strategy to inflict fear in the market making weak hands, uninformed, new investors to sell their stash to have a head start in retrieving their capital at minimal loss.

That said, companies always have a backup plan, an emergency protocol when their financial funding is reaching a red line.  It is also a common practice for companies to liquidate assets to fill the need for financial support so it won't be surprising if MicroStrategy indeed sells their Bitcoin in their financial struggle (if that scenario happens).

Although Microstrategy focuses in converting its funding to Bitcoin, Microstrategy still generates profit from its core business of providing intelligence and analytic software and have strategies to further safeguard or increase its revenue by planning to provide further services seen on their roadmap.  With these plans, it is less likely that MicroStrategy has the need to liquidate their Bitcoin soon or even better that we can see Microstrategy strengthening their position in the Bitcoin market by securing more Bitcoin through more aggressive accumulation.

The AI+BI intelligence software business is an extra cool cashflow to have but that is a legacy business by now, the real deal of MicroStrategy (not Strategy) is that this company is a "Bitcoin refinery" where it packages Bitcoin's volatility and sells it in the market in various tickets. MSTR is the core investment as it is the common shares, then STRK and STRF for lower volatility, lower gains. STRK pays a 10% yield. Then there's the convertible bonds if you have enough money. So that is how they pay for their expenses. The strategy is to get debt at rates low enough that BTC appreciation will pay this debt over time. And when you run the numbers, you see that most people have higher chances of going bankrupt as they hold most of their networth in mortgages, compared to Strategy which has a very low asset to liability risk ratio.

[madnessteat]

^

In my opinion, if the price of BTC falls seriously, Strategy will be forced to sell BTC to pay off investors. No matter how much revenue this company generates, they have a lot of obligations to investors. I don't think that in case of a serious drop in BTC they will be able to raise additional funds to issue shares in order to buy back the drop in BTC price. At such times investors try not to take additional risks. Sailor is not a stupid person, but BTC has a very high volatility, so sooner or later Sailor's business may go bankrupt for reasons independent of him.

[BlackBoss_]

In my opinion, if the price of BTC falls seriously, Strategy will be forced to sell BTC to pay off investors. No matter how much revenue this company generates, they have a lot of obligations to investors. I don't think that in case of a serious drop in BTC they will be able to raise additional funds to issue shares in order to buy back the drop in BTC price. At such times investors try not to take additional risks. Sailor is not a stupid person, but BTC has a very high volatility, so sooner or later Sailor's business may go bankrupt for reasons independent of him.

They survived in a last bear market when Bitcoin fell from around $67,000 to $15,000 that is about 80% correction.

In Bitcoin market history, from ATHs to bear markets and bottom prices, the percents of past corrections are mostly about 80%, only the first bear market has 93% correction. Strategy have been invested in this market a long time, and this market cycle is their second one, so I think they have better risk and capital management cycle by cycle.

[FortuneFollower]

In my opinion, if the price of BTC falls seriously, Strategy will be forced to sell BTC to pay off investors. No matter how much revenue this company generates, they have a lot of obligations to investors. I don't think that in case of a serious drop in BTC they will be able to raise additional funds to issue shares in order to buy back the drop in BTC price. At such times investors try not to take additional risks. Sailor is not a stupid person, but BTC has a very high volatility, so sooner or later Sailor's business may go bankrupt for reasons independent of him.

They survived in a last bear market when Bitcoin fell from around $67,000 to $15,000 that is about 80% correction.

In Bitcoin market history, from ATHs to bear markets and bottom prices, the percents of past corrections are mostly about 80%, only the first bear market has 93% correction. Strategy have been invested in this market a long time, and this market cycle is their second one, so I think they have better risk and capital management cycle by cycle.

The percents of the bottom would fall off with time, as we can see - because clearly, it becomes harder and harder to affect BTC with how big it is already.

[Samlucky O]

I don't think Micheal saylor (microstrategy) is ready to sell the Bitcoin in their possession. They have a long term goal to keep buying and stacking who knows when they will sell but I don't think they will sell anytime soon.

I'm curious: If they do not sell some of their Bitcoin in profits and they just keep buying, how will they make money from their invested Bitcoins?

They have already made a lot of profit even if they buy more or not. Provided Bitcoin is volatile they are going to make more profit.

[hero_the_bossman]

I don't think Micheal saylor (microstrategy) is ready to sell the Bitcoin in their possession. They have a long term goal to keep buying and stacking who knows when they will sell but I don't think they will sell anytime soon.

I'm curious: If they do not sell some of their Bitcoin in profits and they just keep buying, how will they make money from their invested Bitcoins?

They have already made a lot of profit even if they buy more or not. Provided Bitcoin is volatile they are going to make more profit.

In the future, the decrease in price may be 60% max, 50%, and so on - but the profit would still be big enough for such entities that we speak about, so..