MicroStrategy is planning ANOTHER $600 million convertible debt sale to buy BTC

[GreatArkansas]

How do we know what price he will buy the $900 million worth at? I am just assuming that he and other funds/ institutions and companies that want Bitcoin on their balance sheet will most likely buy when it dips.
(.....)

I think this will be disclosed after few days they already bought Bitcoins. They will not announce for sure before their buying, since it is also the same as what happened on their past purchases. And also, just like what Tesla did recently, which is probably around $30,000 - $34,000 price average of their purchases and they announced it after few days of their purchase, and viola, easy pump, easy profits 

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[thecodebear]

How do we know what price he will buy the $900 million worth at? I am just assuming that he and other funds/ institutions and companies that want Bitcoin on their balance sheet will most likely buy when it dips.

Buying right now seems very risky. Hence many institutions might not invest yet. However we had a 30% dip back in January so there is a good chance we might get another 30% dip and maybe he will buy in at that time.

I am assuming most companies would be comfortable buying in the $30-40k region.

I don't see why you think there is a lot of risk right now. Bitcoin literally JUST came out of a correction. It'd be totally unprecedented if there was another major correction any time soon. In december they pretty much bought right after they raised the money. From their website I believe they are selling the notes on the 19th. So I'd expect they will have made all their purchases by end of the month. They aren't playing a betting game trying to guess the price and hoping there will be a dip and buy, they will just be buying once they have the money, and those buys will likely execute over the course of a few days.

Also the assumption that most companies would buy on a dip is not a good assumption. These companies are new investors to bitcoin and they get scared off when they see a dip just like everyone else new to bitcoin. Remember how we just had a correction and institutional buying dried up after about a week into the correction because there was suddenly loads of FUD that the bull run was over and price was going straight back to $20k. Institutional investment is starting to pick up again a bit now (judging by grayscale buys) that the correction is over and price is moving to a new level. Next major correction will probably drop the price back into the $40,000s, and I bet institutional buying will dry up for a bit then as well as everyone gets all scared.

[adaseb]

How do we know what price he will buy the $900 million worth at? I am just assuming that he and other funds/ institutions and companies that want Bitcoin on their balance sheet will most likely buy when it dips.

Buying right now seems very risky. Hence many institutions might not invest yet. However we had a 30% dip back in January so there is a good chance we might get another 30% dip and maybe he will buy in at that time.

I am assuming most companies would be comfortable buying in the $30-40k region.

I don't see why you think there is a lot of risk right now. Bitcoin literally JUST came out of a correction. It'd be totally unprecedented if there was another major correction any time soon. In december they pretty much bought right after they raised the money. From their website I believe they are selling the notes on the 19th. So I'd expect they will have made all their purchases by end of the month. They aren't playing a betting game trying to guess the price and hoping there will be a dip and buy, they will just be buying once they have the money, and those buys will likely execute over the course of a few days.

Also the assumption that most companies would buy on a dip is not a good assumption. These companies are new investors to bitcoin and they get scared off when they see a dip just like everyone else new to bitcoin. Remember how we just had a correction and institutional buying dried up after about a week into the correction because there was suddenly loads of FUD that the bull run was over and price was going straight back to $20k. Institutional investment is starting to pick up again a bit now (judging by grayscale buys) that the correction is over and price is moving to a new level. Next major correction will probably drop the price back into the $40,000s, and I bet institutional buying will dry up for a bit then as well as everyone gets all scared.

I don't think hedge funds and companies with billions to invest in BTC will get scared when there is a dip. They are professionals and do this type of trading everyday. Most retail people are the complete opposite. They buy when price goes up because they get FOMO. However when we get a small pullback they get scared to buy. Or because they think it might go a little lower and it never does. I don't think hedge funds think like that.

Most likely they use old-school TA and can easily see that $40-42K would be the first area to buy some BTC and if it goes lower than add more at $35K area. I don't think they would get scared buying BTC at $42k which is essentially support on the daily chart. Most likely there are tons of people waiting for $42K so they can buy.

[Wind_FURY]

convertible debt note.. is in translation:
"if X goes bankrupt your not getting a penny"

looking at his history. he certainly is going to call it quits before the 6 years are up and disappear with the profit. while claiming the company is insolvent.

Wrong again, from franky1.

If “X” goes bankrupt, the company will file for Chapter 11. Creditors, and shareholders will work with a commitee appointed by the government to either re-organize the company. OR probably distribute the “assets”in their treasury?

Plus “X” has become more valuable by HODLing Bitcoin, than NOT HODLing Bitcoin. It will not be bankrupt.

[LUCKMCFLY]

This is news that undoubtedly if it occurs, will generate an incredible pump in the price of Bitcoin, although the market does not usually react immediately to news except for a fundamental, I believe that the good news strategy is working, because It is stirring the emotions of many and they have started buying at new highs.

This is normal, it is valid in the market, now, if Microstrategy buys, and then announces it, there will be many more reactions worldwide, the price is rising, many speculators entering the market not to miss the movement, and the correction of the new ATH has not been given. I think that for now the best strategy is Hodl, be it for market speculators and investors.

[RealMalatesta]

I don't think hedge funds and companies with billions to invest in BTC will get scared when there is a dip. They are professionals and do this type of trading everyday. Most retail people are the complete opposite. They buy when price goes up because they get FOMO. However when we get a small pullback they get scared to buy. Or because they think it might go a little lower and it never does. I don't think hedge funds think like that.

Most likely they use old-school TA and can easily see that $40-42K would be the first area to buy some BTC and if it goes lower than add more at $35K area. I don't think they would get scared buying BTC at $42k which is essentially support on the daily chart. Most likely there are tons of people waiting for $42K so they can buy.

I have to say they are definitely a lot better at holding and waiting out the storm but let's not act like they are so great at what they do neither. Remember these are the same companies needed saving twice in nearly one decade now, so it is really not like they are so awesome at this than any of us. They could be just holding better than many investors but they are still beholden to investors of their own and when the price drops a lot and investors call out for cashing crypto, they may fail about that too.

Or they could simple sell when it is going up and fail to make the most profit they could only because they want to show better end of quarter reports. This is why I think it is quite obvious that these huge companies going into bitcoin doesn't mean much, sure it is a good thing but it is not like it is going to change anything major for anyone, they might still make big mistakes.

[fillippone]

Apparently the sale has ended:

Apparently, they completed the sale of their convertible bond:


https://twitter.com/michael_saylor/status/1362785854758993927?s=20

Please note that they allocated 14 days to perform the sale, but only one day was enough.

This could explain the price action, either or they already bought 1.05 Billion, or they are going to buy this soon!

In the linked thread I posted a few mumblings on this bond sales, for example here and here.

[thecodebear]

How do we know what price he will buy the $900 million worth at? I am just assuming that he and other funds/ institutions and companies that want Bitcoin on their balance sheet will most likely buy when it dips.

Buying right now seems very risky. Hence many institutions might not invest yet. However we had a 30% dip back in January so there is a good chance we might get another 30% dip and maybe he will buy in at that time.

I am assuming most companies would be comfortable buying in the $30-40k region.

I don't see why you think there is a lot of risk right now. Bitcoin literally JUST came out of a correction. It'd be totally unprecedented if there was another major correction any time soon. In december they pretty much bought right after they raised the money. From their website I believe they are selling the notes on the 19th. So I'd expect they will have made all their purchases by end of the month. They aren't playing a betting game trying to guess the price and hoping there will be a dip and buy, they will just be buying once they have the money, and those buys will likely execute over the course of a few days.

Also the assumption that most companies would buy on a dip is not a good assumption. These companies are new investors to bitcoin and they get scared off when they see a dip just like everyone else new to bitcoin. Remember how we just had a correction and institutional buying dried up after about a week into the correction because there was suddenly loads of FUD that the bull run was over and price was going straight back to $20k. Institutional investment is starting to pick up again a bit now (judging by grayscale buys) that the correction is over and price is moving to a new level. Next major correction will probably drop the price back into the $40,000s, and I bet institutional buying will dry up for a bit then as well as everyone gets all scared.

I don't think hedge funds and companies with billions to invest in BTC will get scared when there is a dip. They are professionals and do this type of trading everyday. Most retail people are the complete opposite. They buy when price goes up because they get FOMO. However when we get a small pullback they get scared to buy. Or because they think it might go a little lower and it never does. I don't think hedge funds think like that.

Most likely they use old-school TA and can easily see that $40-42K would be the first area to buy some BTC and if it goes lower than add more at $35K area. I don't think they would get scared buying BTC at $42k which is essentially support on the daily chart. Most likely there are tons of people waiting for $42K so they can buy.

I'm just saying we literally saw institutional buying dry up after that fake double spend news hit. It went from majorly buying the dip to being scared and holding off. Grayscale buys for instance almost entirely dried up after that fake news spread. It seems institutions fear buying the dip just as retail investors do. But that's likely because they are new to the game and they got scared when suddenly there was a lot of FUD coming from public figures on wall street saying the bull run is over and its going back to $20k. In general institutions I expect to hold long term a lot more than the average retail investor, but they do seem to get scared at least on the first dip they see after investing, just like the retail market does. I mean I was surprised that they acted like retail investors on the dip, after initially buying the dip, and got scared off, but that is precisely what just happened a few weeks ago. I'm thinking it's probably just a first dip thing though, so the ones who already were in during that correction won't be scared by the next one, but new institutional money getting in now could be scared off again when they see their first correction.

One random company that bought like 130 BTC in december even sold it all at low 30s when the double spend lie hit the airwaves cuz they got scared off haha. Bet they are kicking themselves for that panic sell now!

[thecodebear]

Apparently the sale has ended:

Apparently, they completed the sale of their convertible bond:


https://twitter.com/michael_saylor/status/1362785854758993927?s=20

Please note that they allocated 14 days to perform the sale, but only one day was enough.

This could explain the price action, either or they already bought 1.05 Billion, or they are going to buy this soon!

In the linked thread I posted a few mumblings on this bond sales, for example here and here.

Oh yeah I forgot they were offering clients the option of purchasing an additional 150 million. Guess clients took them up on the offer haha. Damn another 1.05 billion to buy Bitcoin...that is a lot! I like how it went from $600 million to $1.05 billion in just a few days.

Wonder if they actually bought today or if just the news of the sale closing is what popped the price. I remember in their first buy back in August it took Coinbase I think a few days to buy $250 million for them, so I would assume they didn't already make $1.05 billion in buys.

[fillippone]

Oh yeah I forgot they were offering clients the option of purchasing an additional 150 million. Guess clients took them up on the offer haha. Damn another 1.05 billion to buy Bitcoin...that is a lot! I like how it went from $600 million to $1.05 billion in just a few days.

Well, I said in my other thread:

• 13 days selling window. This means the sale ends on March 5th. But I expect it to close earlier due to massive demand

Actually, I didn't expect SO earlier.

Wonder if they actually bought today or if just the news of the sale closing is what popped the price. I remember in their first buy back in August it took Coinbase I think a few days to buy $250 million for them, so I would assume they didn't already make $1.05 billion in buys.

And you are right, Coinbase will churn out the 20,000 BTC in a few days, don't worry, we will be updated on it sooner than we might think.

[acquafredda]

Unbelievable what is happening here! I would have never imagined this even in my wildest dreams - I now truly realize I was so lucky to see bitcoin like it is seen now before others. I am a super small fish but I hold some small amount that makes me at least one in 21 million.
These guys are totally coming after all of our coins but we ain't selling, am I right?