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

[fillippone]

But the point is if an ETF is approved, Bitcoin will surge then expand the value of MicroStrategy's balance sheet, therefore making the actual value of MSTR go up. But if MSTR is sold because "reasons" and its price crashes down, THEN the stock is undervalued because of MicroStrategy's surging Bitcoin in the company's vaults. It will be a golden investment

I didn't suggest shorting MSTR outright, I said shorting vs Buying GBTC.
In case of a Bitcoin really post ETF approval, you want to be long GBTC, not Microstrategy. The latter will always have a (negative) overhead over bitcoin valuation. So there will no point holding it once an ETF is approved.

[1714327494]

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[Wind_FURY]

But the point is if an ETF is approved, Bitcoin will surge then expand the value of MicroStrategy's balance sheet, therefore making the actual value of MSTR go up. But if MSTR is sold because "reasons" and its price crashes down, THEN the stock is undervalued because of MicroStrategy's surging Bitcoin in the company's vaults. It will be a golden investment

I didn't suggest shorting MSTR outright, I said shorting vs Buying GBTC.

OK.

In case of a Bitcoin really post ETF approval, you want to be long GBTC, not Microstrategy. The latter will always have a (negative) overhead over bitcoin valuation. So there will no point holding it once an ETF is approved.

If you mean GBTC's current discount to Net Asset Value, then it will be a gamble. I heard Silbert has been having bankruptcy issues involving one of his companies?

MSTR is up 200% since January, Bitcoin is up probably just 90%. Once ETF approvals are taking place = Bitcoin will surge, and I'm very confident that MSTR will again surge more. But, saying it like a broken record, I'm the stupid pleb.

[STT]

MSTR has leverage which would be a positive and negative, ultimately I would want to step away from that vulnerability.   Usually leverage costs money and it may be expensive to unwind when or if BTC became unpopular for speculators.  Right now we appear to have a decent long term trend, with every quarter despite upsets is slightly less negative tone so its an accumulative atmosphere.  The lowest prices are the best guidance not uneven peaks.  This build in sentiment is only just beginning but its quite possible it keeps on track for some time.
  I just wouldnt want to have MSTR when people peak in sentiment or get too hyped, thats when its best to deleverage; I cant assume Saylor can ride that wave perfectly.

Arbitrage appears a good idea, I agree it seems smart ideal value realization but also it can add risk instead of being the profit anticipated from the gap closing.  Most famous example of arbitrage failure is LTCM which involved Nobel prize winners, Im not that clever so I presume its alot harder then it looks.   My general take is volatility rises in many assets and its normal to expect that in BTC.

[fillippone]

An important development for Microstrategy and every other firm (Tesla, SpaceX, Miners) holding bitcoins on their balance sheets:

MSTR: MicroStrategy, crypto holders can shift to fair value accounting, Bloomberg says

Firms can now hold bitcoins at their mark-to-mark value.
Currently average price for Microstrategy is slightly above market price, not big day-one effect.

[bitebits]

[...]
Currently average price for Microstrategy is slightly above market price, [...].

Is there a quick and reliable source to get the number of current outstanding shares? Each financial website I visit states a different number and I have't found it in their quarterly reports either.

[fillippone]

Updating

[Lucius]

It has been confirmed once again that every time Saylor buys BTC the price goes down by at least 1-2%. If one of the various influential crypto-messiahs was doing this, it seems to me that 1 BTC would have been worth more than $100k long ago. On the other hand, Saylor certainly has nothing against continuing to buy BTC at low prices.

[fillippone]

If you want to follow Microstrategy's purchases, let me counsel you on two different instruments.
These are very useful dashboards, which are indeed more precisely updated and actually more useful than my Excel.

• CryptoQuant
  [/url
• 
  
  Bitcointreasuries.net
  /url

[MusaMohamed]

Buybitcoinworldwide.com has its page for MicroStrategy and links to articles on MicroStrategy purchases. 29 articles from the list and some are official reports of MicroStrategy.

https://buybitcoinworldwide.com/microstrategy-statistics/#article-sources

MicroStrategy: Buying Its Bitcoin Macro Strategy

[fillippone]

Yet another buy!






Microstrategy announced its results this evening. On top of it, they updated their holdings.

[wallet4bitcoin]

I think Microstrategy is seeing what we aren't seeing in this space, the way they keep increaisng their Bitcoin holdings is worthy of notable concern. Imagine a company pumping in millions of dollars in acquisition of Bitcoin constantly for more than two years and they seem not to be slowing down even in bear market, I hope we don't wake up one day to see them as the highest hodlers of Bitcoin after Satoshi himself.

With the latest buy of $5.3m worth of Bitcoin, I can confidently say, that crypto is still at its early stage, more investors will soon join the trend soon.

[JayJuanGee]

I think Microstrategy is seeing what we aren't seeing in this space, the way they keep increaisng their Bitcoin holdings is worthy of notable concern. Imagine a company pumping in millions of dollars in acquisition of Bitcoin constantly for more than two years and they seem not to be slowing down even in bear market, I hope we don't wake up one day to see them as the highest hodlers of Bitcoin after Satoshi himself.

With the latest buy of $5.3m worth of Bitcoin, I can confidently say, that crypto is still at its early stage, more investors will soon join the trend soon.

It seems to be a relatively small buy, and gosh they did seem to have some breaks in their buying during some parts of the most downward portions of the BTC price, and whether that was coincidence or not might be a matter of analysis.

So what is a bear market?  Of course, there are varying definitions but difficult to know when we are in them exactly, but it seems to me that we kind of felt that we were in a bear market between around May 2022 and December 2022 or January 2023.. and surely it can be hard to tell exactly when the bear market ended, but it seems by some where in early to mid 2023, several of us would have had been questioning whether we were coming out of the bear market and if the November 2022 $15,479 bottom was in, and the level of confidence should become quite a bit higher with the passage of time, even though maybe the latest test of $25k in September caused some folks to consider that it might be possible that the November 2022 bottom might not be in, and therefore questioning whether we were yet out of the bear market, and the extent to which any of that matters to an entity like MSTR seems to be shown through its ongoing buying actions...

It seems that those people, institutions and/or governments that continued to buy in the past 2-3 years are feeling quite good right now, and surely not all of them are yet out of the red, but probably a good number of ongoing buyers are out of the red, and stories might be more mixed for any of the people, institutions and/or governments that had been trying to trade or engage in other behaviors rather than just consistently buying bitcoin... to the extent that they might not feel that they have enough.. and surely many folks consider that MSTR probably have enough bitcoin, and so their seemingly overly aggressiveness may well cause some others (whether individuals, companies and/or governments) to second guess why their own BTC accumulation strategy might be either non-existent, on the low side such as less than 1-2%, when probably they could easily be 5% to 25%, and MSTR showing strategies that are seemingly closer to 100% or more (the way that they are using leverage), but on a personal basis, I still am sticking with my own recommendation that people should get off zero and they can exercise a pretty wide range of discretion and still be reasonable and in that regard from my point of view, 1% to 25% is more than a reasonable range for any beginner investor into BTC to contemplate as a starting BTC accumulation range.

[aysg76]

I think Microstrategy is seeing what we aren't seeing in this space, the way they keep increaisng their Bitcoin holdings is worthy of notable concern. Imagine a company pumping in millions of dollars in acquisition of Bitcoin constantly for more than two years and they seem not to be slowing down even in bear market, I hope we don't wake up one day to see them as the highest hodlers of Bitcoin after Satoshi himself.

With the latest buy of $5.3m worth of Bitcoin, I can confidently say, that crypto is still at its early stage, more investors will soon join the trend soon.

It's not about how investors see it but as a company Saylor is investing in Bitcoin which might be concerning for other stakeholders but we already know how optimistic he's about it's growth and continuously posting and educating others about bitcoin growth.But this proved to to profitable for them as they have average prices around $29k for more them 120k bitcoins they hold being biggest institutional investor as current prices are more then $30k so it is millions of dollars of profits also.So you would find them investing at each dip which is providing good results for them.

[JayJuanGee]

I think Microstrategy is seeing what we aren't seeing in this space, the way they keep increaisng their Bitcoin holdings is worthy of notable concern. Imagine a company pumping in millions of dollars in acquisition of Bitcoin constantly for more than two years and they seem not to be slowing down even in bear market, I hope we don't wake up one day to see them as the highest hodlers of Bitcoin after Satoshi himself.

With the latest buy of $5.3m worth of Bitcoin, I can confidently say, that crypto is still at its early stage, more investors will soon join the trend soon.

It's not about how investors see it but as a company Saylor is investing in Bitcoin which might be concerning for other stakeholders but we already know how optimistic he's about it's growth and continuously posting and educating others about bitcoin growth.But this proved to to profitable for them as they have average prices around $29k for more them 120k bitcoins they hold being biggest institutional investor as current prices are more then $30k so it is millions of dollars of profits also.So you would find them investing at each dip which is providing good results for them.

I doubt that it is accurate to suggest that MSTR is buying on the dip.   They are buying whenever, such as buying every quarter (or at least reporting it quarterly as they are obligated to do as a public company) but there might be some times that they are buying twice (or several times) in a quarter which largely seems to reflect that they are buying whenever they have extra money available.. and not really on dips as far as it seems..... but reporting at least once a quarter if they have any BTC buys, which they are obligated to make such reports.

I know that maybe I am nit-picking a bit, but in regards to your estimations regarding how much in profits they are, you should try to be a wee bit more accurate with numbers that are already out there (in this thread too).. because you seem to be vague and merely saying that their profits are "a lots" and even "in the millions," which seems to be a bit of an understatement and your numbers are not even close to precise, even if they are directionally correct.

You can look a mere few posts above and see the numbers that fillippone posted which are 158,400 bitcoin and an average cost of $29,753 and so an total invested amount of $4,712,956,757

So if we look at the current BTC price, we can just multiply $34,750 * 158,400 and we get right around $5,505,250,000 in current value.

Which appears to me to be right around $800 million in profits... getting close to a $billion in profits.. It seems that with their current quantity of bitcoin holdings and their cost basis, when bitcoin is above $36k, then they will be $1 billion in profits.. .

so maybe supra $36k is not coming right away, but seems to be pretty closely in reach, even if we might end up having a bit of a correction from here and needing to revisit these prices a bit further down the road.... but at the same time, even though quite a few folks are expecting a correction, it is not a given that BTC prices need to go down before they are able to go up... so each of us should be attempting to prepare our own portfolios accordingly.

[lizarder]

It's not about how investors see it but as a company Saylor is investing in Bitcoin which might be concerning for other stakeholders but we already know how optimistic he's about it's growth and continuously posting and educating others about bitcoin growth.But this proved to to profitable for them as they have average prices around $29k for more them 120k bitcoins they hold being biggest institutional investor as current prices are more then $30k so it is millions of dollars of profits also.So you would find them investing at each dip which is providing good results for them.

Saylor knows what he has to do but I doubt that Saylor is just taking advantage of the downturn to make a purchase. If they are large investors who already understand bitcoin then their buying pattern should not only look at opportunities in decline because they can adjust their financial capabilities to increase their bitcoin holdings at any time when they consider the period is right. Moreover, if you mention that he continuously educates other people, his purchasing abilities should be much more varied in certain periods.

Although we know that buying during a decline is one of the right conditions and this is more likely to be used by individuals who do not have greater financial capabilities. The large holdings they have could exceed the expected profits for the $30k price period and it is conceivable that if they tried to hold bitcoin until it reaches the next ATH, the profits would exceed a percentage of the current amount by a large amount.

[JayJuanGee]

It's not about how investors see it but as a company Saylor is investing in Bitcoin which might be concerning for other stakeholders but we already know how optimistic he's about it's growth and continuously posting and educating others about bitcoin growth.But this proved to to profitable for them as they have average prices around $29k for more them 120k bitcoins they hold being biggest institutional investor as current prices are more then $30k so it is millions of dollars of profits also.So you would find them investing at each dip which is providing good results for them.

Saylor knows what he has to do but I doubt that Saylor is just taking advantage of the downturn to make a purchase. If they are large investors who already understand bitcoin then their buying pattern should not only look at opportunities in decline because they can adjust their financial capabilities to increase their bitcoin holdings at any time when they consider the period is right. Moreover, if you mention that he continuously educates other people, his purchasing abilities should be much more varied in certain periods.

Although we know that buying during a decline is one of the right conditions and this is more likely to be used by individuals who do not have greater financial capabilities. The large holdings they have could exceed the expected profits for the $30k price period and it is conceivable that if they tried to hold bitcoin until it reaches the next ATH, the profits would exceed a percentage of the current amount by a large amount.

As a general principle, there no reason not to believe that Saylor and/or MSTR's strategy is mostly going to be to hold their bitcoin forever Laura.. which likely is going to be several cycles rather than merely having any concerns about what the value and/or price of their BTC holdings might be at the next ATH.  Sure they might deviate in parts from such holding strategy, but I really doubt that trading (or major selling of their BTC stash) is going to become a major part of the ways that they deal with their bitcoin holdings.. though they are surely free to do pretty much whatever they like (as long as they report it - as a public company's obligations to report what they are doing and what they plan to do) to make adjustments to their BTC management and/or maintenance strategies.

[wallet4bitcoin]

I doubt that it is accurate to suggest that MSTR is buying on the dip.

I do not believe MicroStrategy is buying the deep. They have on several occasions bought Bitcoin when its not at the rrecent dips.
I concur to them buying when they have available funds, more reason why I'm forced to believe they probably have a foresight beyond the regular.
Investing more than $4B on Bitcoin doesn't sound like 'testing the waters' for a seasoned investor like MocroStrategy. Not to even consider that they are currently standing at over $800M worth of profit.

[The Sceptical Chymist]

If we're discussing MSTR/Michael Saylor buying the dips, I have a hard time believing that's his strategy (though I'll be the first to admit I haven't looked at the timing of his previous purchases).  He seems like a bitcoin permabull, just like the big-name goldbugs who are permabulls in the gold & silver market, who always have the mindset that it's always great time to buy [gold/silver/bitcoin], i.e., at any price.

Obviously when there's a dip and you have that mindset, you see a bargain, but I just don't think that's Saylor's strategy.  Anyway, I'm still watching the company's stock price even though I don't often post in this thread anymore.  I thought Saylor and MSTR might have been in trouble for a while when bitcoin was down, but it obviously didn't turn out that way and likely won't unless bitcoin seriously drops in price--and given that we're over the $35k mark, things are starting to look pretty rosy again.  We're all happy about that, I'm sure.

[Samlucky O]

It's not about how investors see it but as a company Saylor is investing in Bitcoin which might be concerning for other stakeholders but we already know how optimistic he's about it's growth and continuously posting and educating others about bitcoin growth.But this proved to to profitable for them as they have average prices around $29k for more them 120k bitcoins they hold being biggest institutional investor as current prices are more then $30k so it is millions of dollars of profits also.So you would find them investing at each dip which is providing good results for them.

judging from the analysis of how microstrategy bought his bitcoin starting from 08/08/2020 to the last date being 1/11/2023 there is no true evidence to show that microstrategy bought on deep. Judging from this image==>





Alll what he believes was to invest in bitcoin against Fiat inflation. And a good store of value. This was one of his quote.

MicroStrategy’s Mr. Saylor says the primary objective of buying bitcoin isn’t to make the stock go up, but to keep the company’s purchasing power from going down.

Thanks to the Federal Reserve’s immense intervention in the economy, the U.S. monetary supply is soaring—by one measure, up more than 20% this year. Mr. Saylor expects that pace to continue at 10% or 15% annually, not just in the U.S. but globally.

“We realized that cash is trash,” he says, “and we needed either to shrink the capital structure or move our cash into something that is going to float on the flood of liquidity and not sink under the flood of liquidity.”

If we're discussing MSTR/Michael Saylor buying the dips, I have a hard time believing that's his strategy (though I'll be the first to admit I haven't looked at the timing of his previous purchases).  He seems like a bitcoin permabull, just like the big-name goldbugs who are permabulls in the gold & silver market, who always have the mindset that it's always great time to buy [gold/silver/bitcoin], i.e., at any price.

Obviously when there's a dip and you have that mindset, you see a bargain, but I just don't think that's Saylor's strategy.  Anyway, I'm still watching the company's stock price even though I don't often post in this thread anymore. I thought Saylor and MSTR might have been in trouble for a while when bitcoin was down, but it obviously didn't turn out that way and likely won't unless bitcoin seriously drops in price--and given that we're over the $35k mark, things are starting to look pretty rosy again.  We're all happy about that, I'm sure.

Even if Bitcoin price drops I don't think if saylor and  MSTR will get into any trouble Soon. Checking from the table above there has been massive income generated in the shortest period of time morover the bullrun is yet to come and probably more profit will be made. It took me hours to study this microstrategy investment. Even if I don't get all about it. I think other colique can still guide me. Or still add to what I said.

[JayJuanGee]

If we're discussing MSTR/Michael Saylor buying the dips, I have a hard time believing that's his strategy (though I'll be the first to admit I haven't looked at the timing of his previous purchases).  He seems like a bitcoin permabull, just like the big-name goldbugs who are permabulls in the gold & silver market, who always have the mindset that it's always great time to buy [gold/silver/bitcoin], i.e., at any price.

You are probably kind of correct in the assessment that there is a kind of consistency in the buying patterns of someone like Saylor, but your comparison to the gold/silver permabulls, bitcoin is still a new category of investment and a paradigm shifting discovery (invention), so there seems to be some kind of a lack of appreciation for the power of bitcoin when you compare bitcoin to gold/silver permabulls, when those older technologies have already been beaten the fuck in the market and even their physicality gives them some burdens that bitcoin does not have, and part of the reason that bitcoin is likely around 1,000x or greater value than gold is partly based on its lack of physicality which therefore translates into a more pure moneyness that goes above and beyond gold in a lot of ways, and surely I have been suggesting bitcoin to be around 1,000x better than gold for around 6-7 years, yet it seems that even Fidelity got into the mix of calling bitcoin 10,000x better than gold.. and I am not quite sure if I would go that far, and I have my reasons for choosing 1,000x better than gold based on the total addressable market currently being around $1 Quadrillion, and sure we might be able to double or triple that based on new innovations that bitcoin (and perhaps other inventions) is (are) likely going bring to the future in terms of the addressable market regarding places where monetary (rather than utility) value is currently being stored.

Obviously when there's a dip and you have that mindset, you see a bargain, but I just don't think that's Saylor's strategy.  Anyway, I'm still watching the company's stock price even though I don't often post in this thread anymore.  I thought Saylor and MSTR might have been in trouble for a while when bitcoin was down, but it obviously didn't turn out that way and likely won't unless bitcoin seriously drops in price--and given that we're over the $35k mark, things are starting to look pretty rosy again.  We're all happy about that, I'm sure.

That seems to be kind of your way of admitting that you were wrong, and surely there were a lot of folks trying to beat down the BTC price and hoping that something like Saylor/MSTR was going to fail and/or that they had been making misrepresentations regarding both their liquidation points and/or also the extent to which they might have had overdone it with some of their leverage... but yeah, even though I admit Saylor is quite a bit of a risk-taker and a leverager (but he is also no dummy), there seemed to have to have had to have been some needs for him to be a deceptive twat (or even incompetent) like some of the other prior to 2022 bitcoin/crypto influencers that ended in scandal such as Terra/Luna (Do Kwan), 3AC, Celsius, Blockfi, Voyager, FTX, and seemingly Genesis/DCG (and maybe a few others), but Saylor/MSTR did not end up being in that criminal and/or quasi-criminal (or incompetent) category.. .Surprise surprise, and sure maybe it ended up being luck that Saylor/MSTR was pretty much making fair representations of what they were doing (even though it also did seem like a bit much - more than necessary to make the pro-bitcoin point) since there are so many not very good/honest people out there (who end up getting themselves into a pickle, either with purposefully bad acts or maybe just overly gambling and negligent acts).

Even if Bitcoin price drops I don't think if saylor and  MSTR will get into any trouble Soon. Checking from the table above there has been massive income generated in the shortest period of time morover the bullrun is yet to come and probably more profit will be made. It took me hours to study this microstrategy investment. Even if I don't get all about it. I think other colique can still guide me. Or still add to what I said.

Saylor does seem to be like a pretty sophisticated player in terms of both understanding bitcoin and also understanding various kinds of risk management strategies and how to have various mitigating measures available if the market moves against his various investments.   

Saylor might have been overly disclosing (even though he had obligations to disclose) when in 2022, he stated that some of his BTC (maybe like 10% or so) could have had been liquidated at $21k-ish if the company chose no other actions, and then later (around mid-to-late 2022) when the BTC price went down to the lower $20ks and then further down to $15,479, when he stated that MSTR had taken actions to further collateralize in which those same coins that were leveraged would become in jeopardy if the BTC price were to drop to $3,200 or so and if the company took no further actions, even while at the same time stating that there would still be actions available to the company to make sure that they do not get liquidated, even if the BTC price were to drop to $3,200.

One of the funny things that the MSTR/Saylor haters continue to fail to figure out is that Saylor (and/or his team) is no dummy, and he is also a pretty good negotiator, including that MSTR/Saylor largely bought back their leveraged coins (and/or resolved their loan with Silvergate) for prices that were way bette than what any normal person could have had resolved such a hundreds of millions of dollars situation. MSTR/Saylor came out of their position pretty damned well, including that bitcoin related banking industries were seeming to be attacked during that time too.. so surely matters could have had turned out worse, but even the bitcoin price faired pretty well  through so many attacks in 2022 and 2023 and several of the attacks are continuing, even though the BTC price is not going down as much as the attackers probably would like, which is most likely contributing to the attackers looking foolish, and maybe even that they are going to need to up their attack game, and still not sure if those attacks upon bitcoin are going to end up been effective.