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

[tread93]

Damn, I didn't know that Saylor himself owns like over 17k worth of bitcoins, that is absolutely crazy! I thought it was just his company that was loaded with Bitcoin but I didn't know that he was such a bull with his average buying on his personal coins was 9.8k.... 10k less that Micro's average buy.

[1714252005]

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[1714252005]

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[1714252005]

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[1714252005]

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[Huppercase]

Damn, I didn't know that Saylor himself owns like over 17k worth of bitcoins, that is absolutely crazy! I thought it was just his company that was loaded with Bitcoin but I didn't know that he was such a bull with his average buying on his personal coins was 9.8k.... 10k less that Micro's average buy.

Microstrategy are smart people like every other diamond hands. They know the game better and that's why anytime you see Michael Saylor on TV screen granting interviews and doing podcast, man is literally pushing his investment but many people will think they are fighting for the common guys that hold 1 or 2 bitcoin. However, if you look at it carefully, they are helping the mainstream, they know the right people to lobby to get bitcoin to where it will get to its peak.

There is two side to this though, bitcoin is becoming more and more centralized because a single man is holding that junk of bitcoin, I can't even picture what other people that are holding more than him but aren't even making noise because when they want to sell, they don't tell the public, they move like a ghost. But what I like about this is that anytime bitcoin face a barrier or any difficulties, they will try and fight back quickly without waiting for their investment to collapse, that's the other good side of the coin I like about this adoption of Microstrategy and becoming a full diamond hands.

[erep]

I am not sure exactly what kinds of behaviors or parameters would trigger an audit, and I am not even sure if the SEC has authority to issue such an audit randomly or sua sponte... In other words, it could well be the case that some kind of an official charge or proceeding might need to happen before they are even able to issue an audit.

Yes, the SEC has regulations to examine any company or individual for violations of law, market manipulation, scam activities, or other crypto-related cases. The SEC cannot intervene with any assets belonging to a company or individual if there are no indications of violations of securities rules, they cannot spontaneously audit MSTR's bitcoin asset holdings even though MSTR has claimed to have a portfolio of 158,245 bitcoins (coingecko source).

MSTR is involved in business software development but is a non-crypto company, I think it is unlikely they will face the SEC to audit their bitcoin asset holdings, additionally there are no reports of shareholders experiencing losses due to the impact of MSTR investing any funds into bitcoin investments.

[fillippone]

additionally there are no reports of shareholders experiencing losses due to the impact of MSTR investing any funds into bitcoin investments.

I would be extremely surprised if anything like that would surface on this particular aspect.
Given the particular Microstrategy voting structure and differentiation between share classes regarding voting powers, I think Micheal Saylor has ample freedom of choice about investment choices before any other shareholder can actually bring any legal action forward.

[erep]

additionally there are no reports of shareholders experiencing losses due to the impact of MSTR investing any funds into bitcoin investments.

I would be extremely surprised if anything like that would surface on this particular aspect.
Given the particular Microstrategy voting structure and differentiation between share classes regarding voting powers, I think Micheal Saylor has ample freedom of choice about investment choices before any other shareholder can actually bring any legal action forward.

Each shareholder will respond differently depending on their respective opinions regarding the value of MSTR policy which focuses on increasing bitcoin investment, but perhaps the vote of high class shareholders can provide a significant decision with this policy or Saylor has special authority to management of company assets, that is my opinion and maybe we need another opinion in more detail regarding this discussion. But we can judge from the outside that MSTR continues to increase bitcoin in the portfolio list, perhaps some shareholders support Saylor's decision because the company provides profits to shareholders from bitcoin investments. IMO

[LSDadventure]

Investors in MicroStrategy will think like they might have double ROIs by holding the stock.

Because
If they simply buy Bitcoin, they will have only one profitable asset, bitcoins in their wallets.
If they buy MSTR, they will have two profit sources: one from bitcoin and another one from MSTR stock. Because MicroStrategy is a company that provides other products which can bring benefit to their company and investors. Bitcoin is not the only one product MicroStrategy has.

[Fara Chan]

Each shareholder will respond differently depending on their respective opinions regarding the value of MSTR policy which focuses on increasing bitcoin investment, but perhaps the vote of high class shareholders can provide a significant decision with this policy or Saylor has special authority to management of company assets, that is my opinion and maybe we need another opinion in more detail regarding this discussion. But we can judge from the outside that MSTR continues to increase bitcoin in the portfolio list, perhaps some shareholders support Saylor's decision because the company provides profits to shareholders from bitcoin investments. IMO

Perhaps this is not only due to the special authority of Saylor itself, but also includes several other companies that have become collaborative partners with MSTR. This makes investors continue to believe in increasing the amount of their investment, such as the number of improvements seen in the MSTR portfolio itself, because now investors are definitely more active and not remaining silent because they remember the good times for Bitcoin holders. So there are many investors who immediately make the decision to increase their investment amount early.

[Wind_FURY]

Investors in MicroStrategy will think like they might have double ROIs by holding the stock.

Because
If they simply buy Bitcoin, they will have only one profitable asset, bitcoins in their wallets.
If they buy MSTR, they will have two profit sources: one from bitcoin and another one from MSTR stock. Because MicroStrategy is a company that provides other products which can bring benefit to their company and investors. Bitcoin is not the only one product MicroStrategy has.

Actually, from a mere numbers perspective, the buyers of MSTR in November 2022 did have double the ROI, 2x more than if they merely bought Bitcoin during close to the same time frame.

Bitcoin surged from November, 2022 to January, 2024 - from $15,000 to high of $45,000.

MSTR surged from December, 2022 to January, 2024 - from $135 to high of $720.

That's almost a 2x difference.

[fillippone]

Buy 36 incoming:



According to our spreadsheet:




We were once impressed by these communications. Now the ETFs make Micheal Saylor look like an absolutely tiny beginner.

[Mayor of ogba]

Buy 36 incoming:



According to our spreadsheet:




We were once impressed by these communications. Now the ETFs make Micheal Saylor look like an absolutely tiny beginner.

MicroStrategy keeps on accumulating bitcoin for long-term gain, and I think they will be unstoppable when they finish accumulating the number of bitcoins they want to hold. Micheal Saylor always believes that it is better to hold money in bitcoin than to hold it in a bank account, and we have seen the benefits of holding our money in bitcoin.

[JayJuanGee]

Buy 36 incoming:

According to our spreadsheet:

We were once impressed by these communications. Now the ETFs make Micheal Saylor look like an absolutely tiny beginner.

I'm still impressed - especially for one company to be ongoingly buying bitcoin, and surely some months (or quarters) are lower levels of buys than others, but even if Michael is saying $37.2 million for one month.. that is still pretty damned decent.. I recall some of the earlier days there were quarters and/or months in which the buys were way smaller (such as $10 million).. and so I did a quick glance through MSTR buys spreadsheet.. and yeah the many buys are there.. and even if the buy is not that BIG, relatively speaking, I am still impressed.. It is the kind of ongoing doggedness of MSTR.. to keep sucking up the BTC buys and not leaving them for the regular Joes who might want to get some BTC at cheap prices.. and then still adding up to 190k BTC, and surely there is no doubt that some day MSTR is going to end up passing over the 210k BTC mark.. It is just a matter of time... which is still impressive. .and where are all the BTC for the regular people?  Is anyone going to own any BTC besides the BIG players?  Isn't this screwing up the average amount of BTC that any normies are going to be able to own.. and its gotta be in the less than a million satoshis arena.. so gosh . get your million satoshis and become an above average HODLer (a direct HODLer).

Another thing comparing MSTR with the ETFs, and those ETFs are vehicles specifically designed to attract a large number investors - especially those who go through financial advisors or have other kinds of restrictions on their ability to custody bitcoin such as retirement accounts and various institutions who want bitcoin price exposure.

[fillippone]

Another thing comparing MSTR with the ETFs, and those ETFs are vehicles specifically designed to attract a large number investors - especially those who go through financial advisors or have other kinds of restrictions on their ability to custody bitcoin such as retirement accounts and various institutions who want bitcoin price exposure.

One of the things I had tough happening right after the launch of the ETF, was people selling MSRT to buy the ETF.
I would have initiated a short position in MSRT the stock, to get long the e equivalent position in BTC (or ETF).
Instead this went the opposite side, with BTC gaining more on the upside than the regular ETF.
I don't know I f this trend is going to last more, but it puzzles me it is still here.

[bitebits]

https://www.microstrategy.com/press/microstrategy-acquires-additional-3000-bitcoins-and-now-holds-193000-btc_02-26-2024

"The bitcoin purchases were made using proceeds from the issuance and sale of Shares [...] under the Sales Agreement [...] and Excess Cash  [...]."
https://assets.contentstack.io/v3/assets/bltb564490bc5201f31/blt8f3d2a5e01c1c91b/65dc8d7fd781fe0e39e72c99/form-8-k-02-26-2024.pdf

[fillippone]

Thanks for the timely update.
I am becoming slow on this.

I will later update the spreadsheet with this last buy.

Also, good to note that bitcoin is not dumping on the announcement like it is used to do.

[JayJuanGee]

Thanks for the timely update.
I am becoming slow on this.

I will later update the spreadsheet with this last buy.

Also, good to note that bitcoin is not dumping on the announcement like it is used to do.

After a while some of these dumpers might come to realize that if they dump their coins, they might not be able to buy them back... they gotta wait until their supplier is ready, willing and able to sell them coinz.. and gosh.. if the BTC price might bounce up $10k to $28k, there might not be a willingness to sell coins at these here prices, but yeah when we get into the $80ks, then maybe the willingness to sell coins might come back.  Maybe.

If the willingness to sell coins does not come back in the $80ks, then perhaps it might come back in the $120ks to $130ks..

perhaps?

Perhaps?

There surely are going to be sellers between now $53.3k-ish until into the $130ks, but then are there going to be more sellers than buyers?  and there could be some folks who end up regretting selling too many coins too soon.

[bitzizzix]

Thanks for the timely update.
I am becoming slow on this.

I will later update the spreadsheet with this last buy.

Also, good to note that bitcoin is not dumping on the announcement like it is used to do.

After a while some of these dumpers might come to realize that if they dump their coins, they might not be able to buy them back... they gotta wait until their supplier is ready, willing and able to sell them coinz.. and gosh.. if the BTC price might bounce up $10k to $28k, there might not be a willingness to sell coins at these here prices, but yeah when we get into the $80ks, then maybe the willingness to sell coins might come back.  Maybe.

If the willingness to sell coins does not come back in the $80ks, then perhaps it might come back in the $120ks to $130ks..

perhaps?

Perhaps?

There surely are going to be sellers between now $53.3k-ish until into the $130ks, but then are there going to be more sellers than buyers?  and there could be some folks who end up regretting selling too many coins too soon.

You're right, and I think the recent news and the sudden rise in Bitcoin prices will leave those who sold just to make a decent profit frustrated and regretful.
And while I like Saylor's words, he has repeatedly emphasized that he has no intention of selling MicroStrategy's monster Bitcoin position in the short, medium, or even long term. And this is proof that in the long term without a certain time limit the price of Bitcoin will be much higher than now, later and so on.

[fillippone]

Microstrategy issued another convertible bond in order to use the proceeds to acquire Bitcoin.

MicroStrategy Announces Pricing of Offering of Convertible Senior Notes

TYSONS CORNER, Va., March 6, 2024 — MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced the pricing of its offering of $700 million aggregate principal amount of 0.625% convertible senior notes due 2030 (the “notes”). The notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). MicroStrategy also granted to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $100 million aggregate principal amount of the notes. The offering was upsized from the previously announced offering of $600 million aggregate principal amount of notes. The offering is expected to close on March 8, 2024, subject to satisfaction of customary closing conditions.

The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest at a rate of 0.625% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024. The notes will mature on March 15, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after March 22, 2027, MicroStrategy may redeem for cash all or any portion of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of MicroStrategy class A common stock has been at least 130% of the conversion price then in effect for a specified period of time ending on the trading day immediately before the date the notice of redemption is sent. If MicroStrategy redeems fewer than all the outstanding notes, at least $90 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date.

They issued a 6-year convertible note paying 62.5 bps of yield: that's a steal!




With that, they think of buying approximately 680 millions of Bitcoins.

The conversion as wel,l it will be quite punishing:

The conversion rate for the notes will initially be 0.6677 shares of MicroStrategy class A common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $1,497.68 per share. This represents a premium of approximately 42.5% over the last reported sale price of $1,051.01 per share of MicroStrategy class A common stock on the Nasdaq Global Select Market on March 5, 2024. The conversion rate will be subject to adjustment upon the occurrence of certain events.

Good discounts for current MSTR holders.

[Troytech]

Microstrategy issued another convertible bond in order to use the proceeds to acquire Bitcoin.

MicroStrategy Announces Pricing of Offering of Convertible Senior Notes

TYSONS CORNER, Va., March 6, 2024 — MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced the pricing of its offering of $700 million aggregate principal amount of 0.625% convertible senior notes due 2030 (the “notes”). The notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). MicroStrategy also granted to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $100 million aggregate principal amount of the notes. The offering was upsized from the previously announced offering of $600 million aggregate principal amount of notes. The offering is expected to close on March 8, 2024, subject to satisfaction of customary closing conditions.

The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest at a rate of 0.625% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024. The notes will mature on March 15, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after March 22, 2027, MicroStrategy may redeem for cash all or any portion of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of MicroStrategy class A common stock has been at least 130% of the conversion price then in effect for a specified period of time ending on the trading day immediately before the date the notice of redemption is sent. If MicroStrategy redeems fewer than all the outstanding notes, at least $90 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date.

They issued a 6-year convertible note paying 62.5 bps of yield: that's a steal!




With that, they think of buying approximately 680 millions of Bitcoins.

The conversion as wel,l it will be quite punishing:

The conversion rate for the notes will initially be 0.6677 shares of MicroStrategy class A common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $1,497.68 per share. This represents a premium of approximately 42.5% over the last reported sale price of $1,051.01 per share of MicroStrategy class A common stock on the Nasdaq Global Select Market on March 5, 2024. The conversion rate will be subject to adjustment upon the occurrence of certain events.

Good discounts for current MSTR holders.

With the rate of buying from micro strategy ,ETF companies and other big players it would be very wrong for us retail investors to sell our bitcoin for any reason, if we must sell it should be at least a little cause with the funds at their disposal they could easily buy off all the bitcoin and they might not have any intentions to sell and moreover they are more equipped than us.

I guess all this buying and investing in bitcoin to pump price has been to shake some weak hands to sell to get profits, although no one can hold forever but at least try to have some asset left in bitcoin, bitcoin still has a very bright future and we shoudl not fall for FOMO cause of the bull run to sell our holdings. its all over the Internet and social media many persons even old investors has already set their sell prices and I think this is exactly what this big companies want, to take the bitcoin out from the hands of retail investors, and from the way I see it soon an average earner would find it very difficult to accumulate bitcoin in the next 2 years or so, making it only accessible to big players and high income earners or rich persons, the idea is to hold as long as possible, if possible give to our children as inheritance, bitcoin is really heading somewhere and that place is not the FOMO of 100k or even up to 200k, its an asset that has more potential than that.

#KEEP ACCUMULATING  #KEEP HOLDING  #SELF COUSTODY

Thanks for the timely update.
I am becoming slow on this.

I will later update the spreadsheet with this last buy.

Also, good to note that bitcoin is not dumping on the announcement like it is used to do.

After a while some of these dumpers might come to realize that if they dump their coins, they might not be able to buy them back... they gotta wait until their supplier is ready, willing and able to sell them coinz.. and gosh.. if the BTC price might bounce up $10k to $28k, there might not be a willingness to sell coins at these here prices, but yeah when we get into the $80ks, then maybe the willingness to sell coins might come back.  Maybe.

If the willingness to sell coins does not come back in the $80ks, then perhaps it might come back in the $120ks to $130ks..

perhaps?

Perhaps?

There surely are going to be sellers between now $53.3k-ish until into the $130ks, but then are there going to be more sellers than buyers?  and there could be some folks who end up regretting selling too many coins too soon.

To me I see a scheme with all this buying from ETFs and big companies, I just feel that want to take bitcoin off retail investors and own at least up to 50% of the total supply or more and if that happens, they can decide not to sell any of their and if selling would occur it would be amongst themselves.

The truth is I don't think the days of regrets in bitcoin are over, like the days when early investors that bought at an average of 500$- less than 200$ sold off after seeing maybe 5000$-50000k in bitcoin, that regret would still come back if they did not buy back cause when these big companies get what they want bitcoin would be racing above 500k or even up to a million and most of them can buy back.

My idea of holding has changed totally to me cause, I don't wanna lose to this big companies, at least it good you have some bitcoin up to 30 or 40 minimum before retirement.

[fillippone]

Microstrategy finished the sale of its convertible bond.
Today they announced they used the proceeds of such a sale to acquire an additional 12,000 BTC.



They sold their own shares to buy Bitcoins.

[tiCeR]

Microstrategy finished the sale of its convertible bond.
Today they announced they used the proceeds of such a sale to acquire an additional 12,000 BTC.



They sold their own shares to buy Bitcoins.

I think people were wondering for a long time whether this impressively determined approach will work out, but seriously MicroStrategy / Saylor are so determined and transparent about their buying decisions that it literally turned into a buying signal for global investors when they announce their moves. They have really never left any doubt that they won't stop. They bought when BTC went up and they bought when BTC went down and sometimes the more BTC went up, the bigger the buys.

I never fully understood how they are able to mobilize that much capital, but they have taken advantage of any option possible to get their hands on more cash to buy more BTC. I assume there isn't much left to say except for congratulations to MicroStrategy. They have worked their way towards an amazing position in the BTC industry. Step by step, their own DCA so to say, just with a little bit more money compared to the average Joe!