MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’

[Abuobyda218]

Michael Chayler's Bitcoin strategic reserve company, MicroStrategy, sold 17,585 Bitcoins in the first two weeks of April, with a current market value of $1.3 billion.

Michael Saylor

[Ambatman]

Michael Chayler's Bitcoin strategic reserve company, MicroStrategy, sold 17,585 Bitcoins in the first two weeks of April, with a current market value of $1.3 billion.

Michael Saylor

They didn't
And it never said they did
They were measuring their current amount of Bitcoin bought
As a form of net gain.
Like using equity to buy Bitcoin is like having a gain.
So he was talking about the number of Bitcoin they have gotten in the past two weeks.

[avp2306]

Michael Chayler's Bitcoin strategic reserve company, MicroStrategy, sold 17,585 Bitcoins in the first two weeks of April, with a current market value of $1.3 billion.

Sold what? They never do that. But rather they bought more Bitcoins for this month.

I think you just copy that in this post https://x.com/i/status/2044423581203833280 but I don't know if you understand what you are reading or you just did that on purpose to confuse people.

Also I don't see any point on why they would sell their Bitcoins now, since what we are seeing is they continue accumulating and it seems that they are trying their best to hit 1 million of Bitcoin holdings goal.

[fillippone]

He is probably referring to this:



This week STRC was consistently above par, as they just had the Dividend Date. So Strategy was able to rack up enough liquidity to buy 17,000 BTC (conservative expectation).
We will see a big purchase next week.

[nikola22]

Strategy is proposing to pay semi-monthly dividends on STRC, instead of monthly. No change to the annual dividend obligations or dividend rate. These proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand.



https://x.com/saylor/status/2045232563103359237

for more information: https://www.strategy.com/strc/vote

Saylor wants to make attractive STRC more attractive? )

[fillippone]

This is an important step.
Now STRC oscillates in the monthly cycle between the ex divdend dates, gradually recovering after it get sold at the ex dividend dates, to be bought until it is sold next time, in order to minimise funding costs.
The bimonthly payments would greatly limit this swing because it wuld effectively double the transaction costs, making this "trick" a  lot less appealing. In addition, it would allow STRC to be colser to the "fari value" for most times, allowing Strategy to be more aggressive in buying.

[Donneski]

This is an important step.
Now STRC oscillates in the monthly cycle between the ex divdend dates, gradually recovering after it get sold at the ex dividend dates, to be bought until it is sold next time, in order to minimise funding costs.
The bimonthly payments would greatly limit this swing because it wuld effectively double the transaction costs, making this "trick" a  lot less appealing. In addition, it would allow STRC to be colser to the "fari value" for most times, allowing Strategy to be more aggressive in buying.

Just like you said, this proposal was a very important move.
STRC was becoming too predictable with that monthly  rinse and repeat pattern. Timing the moves around ex-dividend dates became too easy for people which I don't think was what they wanted to continue. The new proposal of breaking it into two payments might actually not solve everything but it should at least make that strategy less attractive and reduce those sharp mechanical swings we normally see

[fillippone]

As expected a very big purchase:




I think I cracked the code to expect the correct number.

[LFC_Bitcoin]

Incredible, I’ve been waiting for this announcement. I knew it’d be a big one, Saylor is relentless. They are well on their way to 1M Bitcoin now. I believe they have overtaken IBIT now as the biggest holder in the world. The floor is being set, only a matter of time until a supply shock and stratospheric moon shot.

[Bd officer]

As expected a very big purchase:




I think I cracked the code to expect the correct number.

Wow they purchased 34,164 BTC and their holdings have exceeded 800k, they have accumulated 815,061 BTC. They are 184,939 away from 1 million BTC. If they keep buying like this they could surpass 1 million by 2026.

[Abuobyda218]

Incredible, I’ve been waiting for this announcement. I knew it’d be a big one, Saylor is relentless. They are well on their way to 1M Bitcoin now. I believe they have overtaken IBIT now as the biggest holder in the world. The floor is being set, only a matter of time until a supply shock and stratospheric moon shot.

34164 bitcoin, Michael Saylor purchased the largest amount of Bitcoin he has purchased since 2025.
815061 bitcoin, Michael Saylor holds the record for holding the largest amount of Bitcoin after Bitcoin creator Satoshi Nakamoto.
815061 bitcoin (0.8M) 3.8% of the total supply is in favor of Michael Saylor.

[HelliumZ]

Both $MSTR and $IBIT have hit the 800K Bitcoin milestone, but Michael Saylor's $MSTR is in second place in terms of volume and BlackRock is in third place in terms of volume. However, the way Michael Saylor continues his buying streak, it has a much higher chance of moving to first place in the future.

1st Satoshi Nakamota (1.1M)
2nd Michael Saylor 815061 Bitcoin
BlackRock 805556 Bitcoin

[Donneski]

As expected a very big purchase:




I think I cracked the code to expect the correct number.

At this point, I'm starting to think that STRC might actually be targeting 1m BTC milestone before the end of next year's Q2. The pace at which they've been buying BTC lately does look like they have a goal they are very determined to achieve at a given period of time. If that's the target, it's achievable if they keep stacking in huge chunks like this.

The interesting part of these buys is that the market is absorbing them without major disruption and that makes me wonder how tight the supply really is behind the scenes.

[fillippone]

At this point, I'm starting to think that STRC might actually be targeting 1m BTC milestone before the end of next year's Q2. The pace at which they've been buying BTC lately does look like they have a goal they are very determined to achieve at a given period of time. If that's the target, it's achievable if they keep stacking in huge chunks like this.

The interesting part of these buys is that the market is absorbing them without major disruption and that makes me wonder how tight the supply really is behind the scenes.

I think this can happen provided that:
1. Bitcoin enter in a bull market.
2. They find a way to keep STRC at par. Possibly making the dividend bimonthly, just to put a disincentive on the opportunistic traders that buy the shares just before the ex date.

The second is by far more important, as it is a way to keep the ATM machine hot and kicking.

[Ambatman]

As expected a very big purchase:

I think I cracked the code to expect the correct number.

What the!!!!!
I expected changes and improvement is a result of the new changes about STRC
But I wasn't expecting it to be in billions.
Bitcoin performance
Pushing MSTR price would have allowed them better make use of ATM.
I'm already loving Q2.
Let's see above $80K so strategy can be in profit again.

[ultrloa]

Incredible, I’ve been waiting for this announcement. I knew it’d be a big one, Saylor is relentless. They are well on their way to 1M Bitcoin now. I believe they have overtaken IBIT now as the biggest holder in the world. The floor is being set, only a matter of time until a supply shock and stratospheric moon shot.

34164 bitcoin, Michael Saylor purchased the largest amount of Bitcoin he has purchased since 2025.
815061 bitcoin, Michael Saylor holds the record for holding the largest amount of Bitcoin after Bitcoin creator Satoshi Nakamoto.
815061 bitcoin (0.8M) 3.8% of the total supply is in favor of Michael Saylor.

Last time they bought huge volume is on November 2024, people can see it on their purchase tracker https://www.strategy.com/purchases

You will see in November 18 2024 they bought 51,780 Bitcoins and November 25 2024 55,500 Bitcoins. But still the current purchase they made is huge and still amazing to see those big purchases despite of volatile challenges what Strategy currently facing.

1 million Bitcoins accumulated volume target coming up and they are so near to hit that milestone.

[Free Market Capitalist]

The floor is being set, only a matter of time until a supply shock and stratospheric moon shot.

That’s the only way the system can work.

Hasn’t anyone noticed that the cash reserve has dropped from 30 months’ worth of dividend payments to 18 months in a short time?

Every time Strategy sells STRC, it creates new cash needs to pay dividends, and Saylor plans to pay them solely by selling STRC (and stopping ATMing MSTR).

So, if you sell a product that pays a very high dividend and you plan to pay the dividends of the current holders by selling more of the same product to new people, so new buyers are constantly entering the system to pay the current holders you need the underlying asset to grow by a lot.

[Italian Panic]

This is an important step.
Now STRC oscillates in the monthly cycle between the ex divdend dates, gradually recovering after it get sold at the ex dividend dates, to be bought until it is sold next time, in order to minimise funding costs.
The bimonthly payments would greatly limit this swing because it wuld effectively double the transaction costs, making this "trick" a  lot less appealing. In addition, it would allow STRC to be colser to the "fari value" for most times, allowing Strategy to be more aggressive in buying.

This is a significant move by strategy and will be put to a vote at the shareholders’ meeting on 8 June if approved, it is expected to come into effect on 15 July.
In this way, Strategy will be able to stabilise the volatility of the share price and, furthermore, align the coupon payment with the date of paydays in the US, thereby improving the liquidity available to consumers and investors. A very astute move. They would also become the only ones on the market to pay dividend every two months, increasing their appeal compared to others who pay every three months.

[fillippone]

Something that caught me off guard is the reduction on the ringfenced reserve for dividend payout. I tought it were to be preserved at 22 months, and I actually based my computation off this. The reality is the reserve was lowered to 18 months.
If Saylor raises the coupon this reserve can deplete faster. So keep an eye on this measure.

[Donneski]

At this point, I'm starting to think that STRC might actually be targeting 1m BTC milestone before the end of next year's Q2. The pace at which they've been buying BTC lately does look like they have a goal they are very determined to achieve at a given period of time. If that's the target, it's achievable if they keep stacking in huge chunks like this.

The interesting part of these buys is that the market is absorbing them without major disruption and that makes me wonder how tight the supply really is behind the scenes.

I think this can happen provided that:
1. Bitcoin enter in a bull market.
2. They find a way to keep STRC at par. Possibly making the dividend bimonthly, just to put a disincentive on the opportunistic traders that buy the shares just before the ex date.

The second is by far more important, as it is a way to keep the ATM machine hot and kicking.

Your second point is important just like you said but don't you think calling it an "ATM machine" might be underselling what MicroStrategy is actually doing?

If their goal was to keep STRC at par, I doubt they'll be this aggressive in their buying pattern.  Their recent buys suggests that they're moving towards achieving a target rather than just maintaining a balance and I think the 1m BTC idea doesn't sound unrealistic anymore if they continue with this pace.

That said, I'm curious to understand why the market is less reacting to these buys, it's kinda unusual. If this level of demand isn't having serious effect on the market, where then is the supply actually coming from?