[2020-08-11] MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

[bbc.reporter]

I think many people today are a little embarrassed by the statements they have made in the past about Bitcoin and may learn something from this experience. If you don't understand something and you don't have enough knowledge about it, it's better not to even comment on it, because sooner or later that statement may seem very strange, to say the least. The specific statement even mentions the collapse of online gambling, and it seems to me that it is a very profitable industry today - especially when people cannot visit physical casinos.

Now we can only wonder who is next on the list of those who will change their minds when it comes to Bitcoin.

Also, his statement about online gambling is also wrong. It is still an industry that earns billions of dollars every year so I do not know what he was telling everyone.

He might also have invested in online gambling stocks hehehehe.
 

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[Mpamaegbu]

With news like this emanating, I can only begin to reinforce my beliefs that 2020/21 is a Bitcoin year just like 2017 was. Perhaps this bull run could even lead to the mass adoption we all have been canvassing. This is great  Really, it's glad tidings to wake up to such news and not the constant and needless FUD from some American billionaires.

BTW, has anyone noticed that the total market cap is now above $370billion? It was $800bilkion + at ATH. We are closely getting there.

[Lucius]

Also, his statement about online gambling is also wrong. It is still an industry that earns billions of dollars every year so I do not know what he was telling everyone.

It’s impossible to know what the person in question was thinking at the time of that tweet, but he obviously had some sort of vision of his own future in which there was no room for Bitcoin and online gambling. Maybe he thought that the West would start censoring the Internet in the same way that China and Russia did, and then things would be much different from they are today.

BTW, has anyone noticed that the total market cap is now above $370billion? It was $800bilkion + at ATH. We are closely getting there.

It’s just a number that has little to do with reality, especially when it comes to altcoins. The total amount of Bitcoin mined times the current price does not mean that there is actually so many Bitcoin on the market, one significant percentage has been lost over time - especially in the first years of its existence when few understood the value of BTC. Still, I have no doubt it will be big news when the market cap for all cryptocurrencies reaches $1 trillion.

[gentlemand]

Another company does this - https://twitter.com/TheRealTahinis/status/1295770434349281281 - a tiny one this time and it reads more like someone's personal preferences spilling over. Maybe they're doing it for an injection of attention.

If I were a small business conscious of cash flow I'd feel like a right twat if my 'bold move' sank me and got everyone fired but hopefully they've run the numbers without emotion.

[bbc.reporter]

Also, his statement about online gambling is also wrong. It is still an industry that earns billions of dollars every year so I do not know what he was telling everyone.

It’s impossible to know what the person in question was thinking at the time of that tweet, but he obviously had some sort of vision of his own future in which there was no room for Bitcoin and online gambling. Maybe he thought that the West would start censoring the Internet in the same way that China and Russia did, and then things would be much different from they are today.

I reckon his no action might cause a series of overreactions hehehe. He will be holding internet gambling stocks, bitcoins, altcoins, ICO tokens, Defi yielding tokens, all of them! I will not be surprised.

[Karartma1]

Doesn't surprise me at all. Many people called the Internet a nerd's paradise and eventually every on got on board the Internet space shuttle.
The same is happening with Bitcoin today, now the incumbents try to get on board.

[bbc.reporter]

The Barstoolsports CEO is also having quite an experience with bitcoin and the cryptospace with a small difference. He was gambling on Link and Orchid then lost $25k when the market pumped and dumped on him hehehehe.

This is the Winklevoss twins' doing. They introduced him to bitcoin hehe

[gentlemand]

This is the Winklevoss twins' doing. They introduced him to bitcoin hehe

He wanted to put 50% into that crap but they talked him down to 10%.

It's been an interesting real time psychology demonstration. Even a hardened businessman who must've seen it all over the years got sucked in by the idea of shitcoins and their mad gainz. And ruin.

[gentlemand]

https://chrisgimmer.com/bitcoin-reserve-asset/

Another one does it. This is https://snappa.com

Never heard of 'em. Have now.

He's certainly done his homework and it's a neat overall summary. I can see this becoming more of a thing as attention grows and then there will be some bitter regrets if they buy at the wrong time and have a need to access the funds when things tighten on a downtrend.

[bbc.reporter]

@gentlemand. I created a thread arguing that bitcoin and the cryptospace might be in the early phase of a big short scenario similar to what occured in the movie of the same title. Many disagreed with my argument and they were close to call it fud.

https://bitcointalk.org/index.php?topic=5250676.0

Now that you see the printing of billions of tether and the hoarding of bitcoin by unknown companies, how do you see this ending?

[gentlemand]

I'm past caring about Tether myself. They have 'won' and become a fact of life.

I absolutely do not believe it arrives out of thin air. If that was true it would've lasted a few days at most, not several years. I'm sure there have been periods of time where they played fast and loose with reserves but they make it up again.

Their real genius is offloading the backing onto everyone else too. Every person who trades USD/USDT is now their backer. Every exchange who says they'll make good on the peg even if Tether don't is their backer as well.

[squatter]

Their real genius is offloading the backing onto everyone else too. Every person who trades USD/USDT is now their backer. Every exchange who says they'll make good on the peg even if Tether don't is their backer as well.

What exchange is promising that? If the value of USDT goes to $0, I assume Kraken will let their customers withdraw all the USDT they want -- but they won't be making good on any peg.

[gentlemand]

What exchange is promising that? If the value of USDT goes to $0, I assume Kraken will let their customers withdraw all the USDT they want -- but they won't be making good on any peg.

Dunno about now, but at one slightly shaky point I remember someone like Okex saying they'd make good on the peg even if Tether themselves ballsed up. I might be completely imagining it.

[bbc.reporter]

I'm past caring about Tether myself. They have 'won' and become a fact of life.

I absolutely do not believe it arrives out of thin air. If that was true it would've lasted a few days at most, not several years. I'm sure there have been periods of time where they played fast and loose with reserves but they make it up again.

Their real genius is offloading the backing onto everyone else too. Every person who trades USD/USDT is now their backer. Every exchange who says they'll make good on the peg even if Tether don't is their backer as well.

You might not care, however, we should be aware of the transition that Tether has become similar to banks and fractional reserve banking. They can manipulate the money supply to pump the cryptospace economy and this always ends in a big short similar to the different financial crisis that have occured in the past.

Has this community given up on the ideals of bitcoin's creation?

[gentlemand]

I said I was past caring. I also said I believe they are what they claim to be - backed by tangible cashola.

If I thought it was one crypto bro magicking up a few hundred million on his laptop every week I'd articulate that.

[cosmicrays]

Bitcoin is already a treasure to some extent. But it is still unclear whether it will become the second gold or not.

[bbc.reporter]

Shortly after the miners' dump, we might have some good news from Microstrategy hehe. I reckon that the insitutions applying for an ETF and hoping for approval should move quickly. There might not be plenty of pumps left for them hehehehe.



MicroStrategy had previously indicated that it saw bitcoin and other alternative investments as a means to avoid inflation, noting that "it makes sense to shift our treasury assets into some investments that can't be inflated away or are less likely to be inflated away."

A new filing from September 14 indicates that the company might be eyeing additional bitcoin purchases.

Source https://www.theblockcrypto.com/linked/77719/microstrategy-bitcoin-reserve-purchases-250m

[Karartma1]

Shortly after the miners' dump, we might have some good news from Microstrategy hehe. I reckon that the insitutions applying for an ETF and hoping for approval should move quickly. There might not be plenty of pumps left for them hehehehe.

MicroStrategy had previously indicated that it saw bitcoin and other alternative investments as a means to avoid inflation, noting that "it makes sense to shift our treasury assets into some investments that can't be inflated away or are less likely to be inflated away."

A new filing from September 14 indicates that the company might be eyeing additional bitcoin purchases.

Source https://www.theblockcrypto.com/linked/77719/microstrategy-bitcoin-reserve-purchases-250m

This is a juicy update that shows how the first press release on the subject was not intended for marketing purposes only. Microstrategy is really betting hard on bitcoin. Well done

[Harlot]

"Under the new Policy, treasury reserve assets will consist of (i) cash, cash equivalents, and short-term investments (“Cash Assets”) held by the Company that exceed working capital needs and (ii) bitcoin held by the Company, with bitcoin serving as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets, including future potential share repurchase activity," the filing states, adding:

I think this is the most important thing to see for their treasury policy. Yes we all know that MicroStrategy is buying Bitcoin as a means of alternative cash reserve but it clearly states in their policy that their Bitcoin reserve is subject to market conditions which as of right now they are eyeing another Bitcoin purchase because there was a significant price decrease on Bitcoin's value. Now they are just taking advantage of the market but it is also stated in there policy that their reserve can also be used for share repurchasing which they will likely liquidate their Bitcoin for that kinds of plan.

[bbc.reporter]

Shortly after the miners' dump, we might have some good news from Microstrategy hehe. I reckon that the insitutions applying for an ETF and hoping for approval should move quickly. There might not be plenty of pumps left for them hehehehe.

MicroStrategy had previously indicated that it saw bitcoin and other alternative investments as a means to avoid inflation, noting that "it makes sense to shift our treasury assets into some investments that can't be inflated away or are less likely to be inflated away."

A new filing from September 14 indicates that the company might be eyeing additional bitcoin purchases.

Source https://www.theblockcrypto.com/linked/77719/microstrategy-bitcoin-reserve-purchases-250m

This is a juicy update that shows how the first press release on the subject was not intended for marketing purposes only. Microstrategy is really betting hard on bitcoin. Well done

However, it appears that despite their strategy of making their purchases without pumping the price, this caused them to have bought the high hehehe.