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

[AirtelBuzz]

Microstrategy to raise $500 million to buy more bitcoins

MicroStrategy announced a proposed private offering of $500 million convertible senior notes $MSTR.

Twitter (X)

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[LFC_Bitcoin]

He’s at it again, absolute legend. This latest $500 million convertible senior notes, pumped into Bitcoin will put MSTR above 210,000 coins & > 1% of total supply.

Saylor is going to go down in history.

[fillippone]

Microstrategy to raise $500 million to buy more bitcoins

MicroStrategy announced a proposed private offering of $500 million convertible senior notes $MSTR.

Twitter (X)

Rinse and repeat.
The important thing is that once they have cashed those 500 million, they will buy Bitcoin on the open market during the early European Hours, when liquidity is thin,  and they are not going to be shy. They will lift the market in European hours for approximatively 6,500 BTC. Another big green candle is coming in the next few days.

They did it last Monday, so I guess we have a pattern here.

[Pi-network314159]

Microstrategy to raise $500 million to buy more bitcoins

MicroStrategy announced a proposed private offering of $500 million convertible senior notes $MSTR.

Twitter (X)

No doubt Bitcoin has become a stepping stone of massive wealth for the Saylors MSTR family. They could be the top leading richest Bitcoin investors in history of Bitcoin investment.  Though it seems they are still at the table of 3 or 4 and with the percentage holding of about %1.34 percent holding of the total number of Bitcoin holding after Satoshi Nakamoto and others. I know by know Michael J Saylor would be regretting why he didn't invested this amount earlier before now. It is also a good news to the cryptoprenuer because the amount invested in bitcoin by Saylor will boost the growth of bitcoin.

[Dump3er]

He’s at it again, absolute legend. This latest $500 million convertible senior notes, pumped into Bitcoin will put MSTR above 210,000 coins & > 1% of total supply.

Saylor is going to go down in history.

Saylor is going to go down in history.

I guess so!

Saylor's strategy is no joke. On the one hand I think he crossed the point of ne return quite some time ago. Not in the sense that he couldn't sell and lean back, but in the sense that he has communicated a certain message to the world and now he will stick to it no matter what. It impresses me and no kidding here, if he keeps accumulating BTC like this, and BTC keeps expanding, which I think it will at rapid pace, Saylor and MicroStrategy could not only become filthy rich, but more importantly a geopolitical player because of their supply control over the one and only globally relevant decentralized currency.

If BTC one day becomes the highest valued circulating currency in the world and someone controls a few percent of it, damn that means a lot of things at the same time. It's not comparable to people who have their wealth in equity or spread over several asset classes. BTC is a decentralized reserve currency to any other currency. Or well, I realize BTC is not only a reserve currency because it is foreign to all currencies. It is, put in better terms, a reserve financial system to the entire existing financial system. Yes, a reserve system. Owning a few percent of that, for me this begs the question whether one day someone like Saylor could become a target of globally important actors pursuing their geopolitical agendas. There will probably not be competition for BTC like there is for Tesla in the car manufacturing industry. There is not a single person actor owning a few percent of the USD supply. It is a government, a state, but not a single target.

I would be interested in your opinions about this and whether you think I am getting something wrong here.

[The Sceptical Chymist]

The important thing is that once they have cashed those 500 million, they will buy Bitcoin on the open market during the early European Hours, when liquidity is thin,  and they are not going to be shy. They will lift the market in European hours for approximatively 6,500 BTC.

I'm not going to criticize Michael Saylor, so don't flame me, but if he buys bitcoin that way is it in the best interest of MSTR's shareholders?  AFAIK he's got a fiduciary responsibility to use Microstrategy's money & resources in the most responsible manner possible, and I'd think that getting a loan for that much money and buying bitcoin at a time when trading volume is relatively low might raise some eyebrows at the very least.

Aside from that, you can't argue with MSTR's stock price right now ($1695 as I write this).  Never would have thought it'd go that high, but I've been proven wrong once again.

[JayJuanGee]

He’s at it again, absolute legend. This latest $500 million convertible senior notes, pumped into Bitcoin will put MSTR above 210,000 coins & > 1% of total supply.

Saylor is going to go down in history.

Saylor is going to go down in history.

I guess so!
Saylor's strategy is no joke. On the one hand I think he crossed the point of ne return quite some time ago. Not in the sense that he couldn't sell and lean back, but in the sense that he has communicated a certain message to the world and now he will stick to it no matter what. It impresses me and no kidding here, if he keeps accumulating BTC like this, and BTC keeps expanding, which I think it will at rapid pace, Saylor and MicroStrategy could not only become filthy rich, but more importantly a geopolitical player because of their supply control over the one and only globally relevant decentralized currency.

If BTC one day becomes the highest valued circulating currency in the world and someone controls a few percent of it, damn that means a lot of things at the same time. It's not comparable to people who have their wealth in equity or spread over several asset classes. BTC is a decentralized reserve currency to any other currency. Or well, I realize BTC is not only a foreign currency because it is foreign to all currencies. It is, put in better terms, a reserve financial system to the entire existing financial system. Yes, a reserve system. Owning a few percent of that, for me this begs the question whether one day someone like Saylor could become a target of globally important actors pursuing their geopolitical agendas. There will probably not be competition for BTC like there is for Tesla in the car manufacturing industry. There is not a single person actor owning a few percent of the USD supply. It is a government, a state, but not a single target.

I would be interested in your opinions about this and whether you think I am getting something wrong here.

It remains a bit of a head scratcher and a bit of a dilemma regarding why he wants to push the issue so much, and like you suggested, he seems to have painted himself and/or his company into a kind of a bitcoin accumulating engine, and surely he has to do it publicly on the side of his company, since it is a public company, so those announcements have to be made, even though maybe not in the ways that Saylor is announcing them.. but he gets a lot of retweeting of his bitcoin buys anyhow.   Of course, if Saylor is making any further personal purchases (beyond the initial nearly 18k bitcoin that he claimed to have had bought in July 2020), he has not been saying anything about any further personal purchases of BTC that he might have had been making.

The important thing is that once they have cashed those 500 million, they will buy Bitcoin on the open market during the early European Hours, when liquidity is thin,  and they are not going to be shy. They will lift the market in European hours for approximatively 6,500 BTC.

I'm not going to criticize Michael Saylor, so don't flame me, but if he buys bitcoin that way is it in the best interest of MSTR's shareholders?  AFAIK he's got a fiduciary responsibility to use Microstrategy's money & resources in the most responsible manner possible, and I'd think that getting a loan for that much money and buying bitcoin at a time when trading volume is relatively low might raise some eyebrows at the very least.

Aside from that, you can't argue with MSTR's stock price right now ($1695 as I write this).  Never would have thought it'd go that high, but I've been proven wrong once again.

Who is flaming who?  You keep raising the same question for the last 3-ish years.

Yeah of course Saylor has fiduciary duties to his shareholders, and they seem to love his approach, as demonstrated in the share price and also how he seems to keep doubling down, and you might consider that he his overly leveraging the company when he could just let it ride, but his average price per BTC has merely gone from $28k-ish to $33k-ish in recent times (maybe over the last 9 months.. but then they got an additional 70k bitcoin or maybe more during that time, too.... and so yeah, maybe he will end up running MSTR into the ground if for some reason bitcoin ends up not being as great a bet as his shareholders and he seem to think it is. 

I am also pretty sure they changed their company's purpose to a bitcoin development company, even though more accurate it seems to be a bitcoin speculation company, which may not be enough of a discrepancy to make any difference since he is publicly open in regards to the contents of his various 10k reports... Which shareholders are going to claim that they did not know what he has been doing? 

On the other hand, if your theory is that they are going to turn on him when (or if) the BTC prices go down, that seems to be a pretty lame cause of action, even though you seem to think that it is important.... and it is not..  You should already realize that one of the main ways to make a cause of action for breach of fiduciary duties would be in regards to lack of transparency (if such were to exist) rather than merely based on his using leverage to buy bitcoin and telling everyone that is what he is doing.

[fillippone]

I am also pretty sure they changed their company's purpose to a bitcoin development company, even though more accurate it seems to be a bitcoin speculation company, which may not be enough of a discrepancy to make any difference since he is publicly open in regards to the contents of his various 10k reports... Which shareholders are going to claim that they did not know what he has been doing?  

Today I just realized how high the price of MSTR climbed relative to the Bitcoin Value.
The current Enterprise Value of MSTR (Equity + Debt- Cash) is more than 2.3 times the Bitcoin Value.
This is the highest level on record I guess.

The road to this price is full of those who tried to short it at the ETF launch(ahem....)

[bitzizzix]

He’s at it again, absolute legend. This latest $500 million convertible senior notes, pumped into Bitcoin will put MSTR above 210,000 coins & > 1% of total supply.

Saylor is going to go down in history.

Michael Saylor, CEO of MicroStrategy, always buys Bitcoin probably because he believes in it a lot and knows exactly what Bitcoin is. And he continues to fill his bag because he knows very well that Bitcoin is the future of money, and he has the ability.
And just as we believe that Bitcoin will provide great profits, especially in the long term, and it is this kind of belief that will produce good results in the future in different ways and different circumstances but with one goal.

[The Sceptical Chymist]

Who is flaming who?  You keep raising the same question for the last 3-ish years.

That was a preemptive call for non-flaming, since I recall getting a lot of backlash for prior statements.  And I'm not flaming anyone here because of any opinions they might have regarding MSTR.  Not now, anyway (heh).

On the other hand, if your theory is that they are going to turn on him when (or if) the BTC prices go down, that seems to be a pretty lame cause of action, even though you seem to think that it is important.... and it is not..  You should already realize that one of the main ways to make a cause of action for breach of fiduciary duties would be in regards to lack of transparency (if such were to exist) rather than merely based on his using leverage to buy bitcoin and telling everyone that is what he is doing.

But there already was a lawsuit in the works that I linked to a while back (that apparently went nowhere), so it isn't as though it couldn't happen.  But you're right, MSTR is being completely transparent about what they're doing with respect to buying bitcoin so I guess anyone who holds their stock shouldn't be shocked that its price is closely tied to the price of bitcoin.  And if bitcoin dropping down to $16k or wherever it was a couple of years ago didn't cause a revolt then I doubt there's going to be one in the works, except if some ambulance-chasing law firm wants to start up a class action lawsuit (which would probably fail).

Anyway, despite my skepticism my current thinking is that it's a benefit to the rest of us that a CEO of a tech company is so pro-bitcoin that he's putting his money where his mouth is and buying it in bulk.  If he has any influence in government or influential friends, that'd be even better.

[kingmanbs]

This is good news for many people in the world who are not familiar with Bitcoin.  Microstrategy bought 250 million bitcoins and held them for a long time.  This they do a lot of intelligence work.  When he sees that the next time it goes viral, his market price goes up a lot, he sells at a higher price in the market, then he spends more bitcoins to buy so that he can sell at a higher price later on.

[JayJuanGee]

Who is flaming who?  You keep raising the same question for the last 3-ish years.

That was a preemptive call for non-flaming, since I recall getting a lot of backlash for prior statements.  And I'm not flaming anyone here because of any opinions they might have regarding MSTR.  Not now, anyway (heh).

On the other hand, if your theory is that they are going to turn on him when (or if) the BTC prices go down, that seems to be a pretty lame cause of action, even though you seem to think that it is important.... and it is not..  You should already realize that one of the main ways to make a cause of action for breach of fiduciary duties would be in regards to lack of transparency (if such were to exist) rather than merely based on his using leverage to buy bitcoin and telling everyone that is what he is doing.

But there already was a lawsuit in the works that I linked to a while back (that apparently went nowhere), so it isn't as though it couldn't happen.  

The mere fact that people file frivolous law suits should not be sufficient evidence that there might be some in the future that might potentially have some merit...

Personally, I think that it is better to describe some sort of valid cause of action, and then go from there rather than just exaggerating possible causes of action that are frivolous at best.

But you're right, MSTR is being completely transparent about what they're doing with respect to buying bitcoin so I guess anyone who holds their stock shouldn't be shocked that its price is closely tied to the price of bitcoin.  And if bitcoin dropping down to $16k or wherever it was a couple of years ago didn't cause a revolt then I doubt there's going to be one in the works, except if some ambulance-chasing law firm wants to start up a class action lawsuit (which would probably fail).

Anyway, despite my skepticism my current thinking is that it's a benefit to the rest of us that a CEO of a tech company is so pro-bitcoin that he's putting his money where his mouth is and buying it in bulk.  If he has any influence in government or influential friends, that'd be even better.

He is becoming more and more popular, yet in recent times, I have been describing him as "not normal" and not something that regular normies should emulate, even though, sure, he can do what he likes..and maybe his battle is more with the no coiner companies or those companies who are bashing on bitcoin, so he is creating drama with some of those big companies to potentially teach them a lesson to get in the bitcoin train sooner rather than later, even though some of them continue to be against bitcoin, even while Saylor is ongoingly showing them actual concrete evidence that getting on the bitcoin train can be (and has been) a winning strategy.  

This is good news for many people in the world who are not familiar with Bitcoin.  Microstrategy bought 250 million bitcoins and held them for a long time.  This they do a lot of intelligence work.  When he sees that the next time it goes viral, his market price goes up a lot, he sells at a higher price in the market, then he spends more bitcoins to buy so that he can sell at a higher price later on.

You are just making shit up.  So far MSTR has not been trading (which involves selling bitcoin).

They have ONLY been accumulating, and pretty regularly since the start of this thread...  including saying that they are never selling.. even though they might be exaggerating a bit on the last point.. perhaps.  Saylor is so crazy, he might really be telling the truth about never selling, even though he surely has the option to sell at any time that he wants as long as he is not breaching his fiduciary duty to his shareholders who might have become reliant upon his ongoing, persistent and consistent statements that he is never selling any of his (MSTR's) bitcoin.

[fillippone]

They have ONLY been accumulating, and pretty regularly since the start of this thread...  including saying that they are never selling.. even though they might be exaggerating a bit on the last point.. perhaps.  Saylor is so crazy, he might really be telling the truth about never selling, even though he surely has the option to sell at any time that he wants as long as he is not breaching his fiduciary duty to his shareholders who might have become reliant upon his ongoing, persistent and consistent statements that he is never selling any of his (MSTR's) bitcoin.

At this point I guess never selling has more to do with Stock valuation rather tan Bitcoin Valuation.
At the moment, Microstrategy has a record valuation as its enterprise value is more than 2.3 times the Bitcoin they hold.
Selling bitcoin from Micheal Taylor would have a negative price impact for Bitcoin, but it would also destroy this "Microstrategy Premium", so this not going to happen.

Also maybe this si the reason MS has been selling Microstrategy shares lately, and not bitcoin.

[MusaMohamed]

He’s at it again, absolute legend. This latest $500 million convertible senior notes, pumped into Bitcoin will put MSTR above 210,000 coins & > 1% of total supply.

Saylor is going to go down in history.

Michael is doing well for his company and the Bitcoin community, Bitcoin price get benefit from money spent by MicroStrategy and their noise on media.

I wonder that is there any limit on issue of convertible note, according to laws and regulation?

I don't have knowledge in this field but I believe there will be limit on what MicroStrategy can do with convertible notes, and they will not be allowed to issue it as no cap.

[fillippone]

He’s at it again, absolute legend. This latest $500 million convertible senior notes, pumped into Bitcoin will put MSTR above 210,000 coins & > 1% of total supply.

Saylor is going to go down in history.

Michael is doing well for his company and the Bitcoin community, Bitcoin price get benefit from money spent by MicroStrategy and their noise on media.

I wonder that is there any limit on issue of convertible note, according to laws and regulation?

I don't have knowledge in this field but I believe there will be limit on what MicroStrategy can do with convertible notes, and they will not be allowed to issue it as no cap.

I am not aware of any limit on convertible note issuance limit, but I might be wrong. Of course more important than any legal limit of this activity, is the market giving “limits”: when you use too much leverage the market starts questioning the approach and usually demands higher and higher premiums for that.
At the moment, this limit is far beyond horizon for MSTR, but things might change If issuing goes on, or priced dynamics Turns less favourable.

[AirtelBuzz]

Michael Saylor's MicroStrategy raised $600m over 7 years at just 0.875% interest.

MicroStrategy completed the offering of $603.75 million of convertible notes at a 0.875% coupon and a 40% conversion premium.


Twitter (X)

[fillippone]

They found pennies in an old pants pockets to buy some more:




I would say this time they were happily served by the market.
No green candle.

[Don Pedro Dinero]

 In this regard, there is a recent play by Saylor that has caught my attention. He popularised 'borrow against your bitcoin', explaining that the very rich do not sell their assets but borrow against them and refinance them. So, it is logical that he keeps accumulating because he considers bitcoin the best asset in the world, and he is not going to sell, apart from some small sales for tax purposes as happened once before. But he recently sold shares in his company:

MicroStrategy's executive chairman sells over $2.6 million in company stock.

I don't see why he does that when he could do the same thing, borrow against the shares, instead of selling them and avoiding paying capital gains tax. In the end MSTR is basically a derivative product of bitcoin that due to leverage is having more returns than bitcoin itself and in which the business intelligence business has less and less weight. That's why I don't see this move as very consistent with what it preaches.

[bitebits]

^

[...] Saylor is selling MSTR options that he got 10 years ago that will otherwise expire. 5000 shares per day in Q1. Saylor has been fully transparent about this in their Q4 financial results. He buys bitcoin privately with the proceeds.

[Benedictare]

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Bitcoin Magazine - Bitcoin News, Articles and Expert Insights home
MICROSTRATEGY'S SAYLOR OFFERED TO BUY OUT SHAREHOLDERS BEFORE BUYING BITCOIN
Speaking at the 2024 Abundance360 Summit, MicroStrategy CEO Michael Saylor offered new details on his historic 2020 Bitcoin purchases.
VIVEK SEN8 HOURS AGO
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Michael Saylor faced obstacles before he successfully added Bitcoin to MicroStrategy's balance sheet in 2020.

Speaking at the 2024 Abundance360 Summit this week, Saylor revealed how he offered to buy out MicroStrategy shareholders in a Dutch action when they moved to first acquire $250 million worth of Bitcoin.

The comments come after Saylor and his company announced earlier this week that they had purchased approximately 9,245 bitcoins for around $623 million. This latest acquisition brings MicroStrategy's total holdings to about 214,246 BTC.

In a video clip from the conference, Saylor explained how he offered MicroStrategy shareholders the option to tender their shares back to the company as they were buying Bitcoin.

"We announced that we would do a Dutch auction and buy back $250 million of the stock at a premium. The stock was about $121-$122. We offered to buy our shareholders out at $140. We gave 20 days to think about it." Saylor explained.

He said his philosophy was to "buy Bitcoin" and that he was willing to do whatever it took to accumulate more. At the time, the Bitcoin was price was roughly $11,000, down from all-time highs at $20,000 set in 2017.

Saylor's aggressiveness in acquiring Bitcoin for MicroStrategy has made the enterprise software company one of the largest corporate holders of Bitcoin. The company currently holds over $13.7 billion worth of BTC, making Bitcoin its primary corporate treasury asset.

MicroStrategy has since financed its bitcoin purchases through debt offerings and equity issuances, even as the bitcoin market has declined, and has made clear he has no plans to sell his stash anytime soon.

Vivek Sen
BY VIVEK SEN
Vivek Sen is a UK-based news reporter for Bitcoin Magazine.

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