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

[jacafbiz]

I was very surprise about the amount of money MicroStrategy keeps committing into Bitcoin, I don't know who is helping them to do their trading but buying around this price shows something, they know the price can still go very high or they believe that their business model won't give the profit they get from Bitcoin. What I was told was that Institutional investors don't buy the top but they way things are now, they are likely to buy the top in this market

[1713481326]

1713481326

[1713481326]

1713481326

[1713481326]

1713481326

[oHnK]

...I thought BTC would be corrected yesterday so that it can be bought at a cheap price.  It was only for a moment.

If MicroStrategy and other institutional Investors continue to buy Bitcoin in thousands like they are doing atm, prolly the price as things stand at the moment could be considered 'cheap' in relation to what the price could be in as many months. I think that's the very reason why MSG and other investors are harnessing every little opportunity that presents itself via corrections in price to acquire more Bitcoins and add to their stash, we could have a somewhat unbelievable BTC price come the end of the year, I think hodl and accumulating more during a correction is absolutely worth it.

Yes, I think it will be like that, if waiting for a deep correction and a relatively affordable price is again impossible.  Yesterday was the perfect moment to buy at a low price.  Because today BTC has touched 51k USD again.  I am even more confused when a major correction occurs whether the current price is really a stable price.

[fillippone]

This convertible bond offering is absolutely insane.  Don't know how else to put it.  I don't get people who buy it.  Imagine bitcoin crashes, all you have is an unsecured debt of some company that committed accounting fraud in the 90s, or converted into shares of such a company.  I'd rather just own bitcoin no ?

I tried to figure out here on this post.

Not every treasurer is able to get long bitcoin, yet. Instead they can get long any crap ISIN code, as it is allowed by your investment mandate.
This is a stupid consequence of the SEC not approving a proper Bitcoin ETF.

[fr4nkthetank]

i mean, that makes sense.  I hope they aren't betting people's pensions on that.  There is an ETF in canada now, they should all dump their proxy-btc stocks for it

[JayJuanGee]

Price goes up and price goes down, so what about buying on dips?

I was actually referring to the fact that whenever MS announces the purchase of BTC, the price drops significantly as has been the case now.  If someone says they are going to invest over $1 billion in BTC it should have a positive effect on the market, I find it strange that the exact opposite is happening.

You are correct to clarify that matter, because surely I had read your statement to be the opposite - as if MS was timing their purchases (or announcements) to be at the bottom, but still I believe my point is still pretty damned similar in that I consider those kinds of short term BTC price moves to BIG SO FUCKING WHAT's, even though sometimes we might want to consider that a bunch of bullish news should have bullish effects on BTC prices.

If you look at my post history, I frequently proclaim to have hardly any clues about short term BTC price prediction directions and I am frequently critical of either persons attempting to proclaim that they know the BTC price direction or those who try to suggest either narrow explanations for BTC's price movements or to overly suggest manipulation when frequently we are within reasonable parameters of normal BTC price movements.

In our current situation, BTC price can go in either direction.,. and who knows or who cares might be the considerations of longer term BTC HODLers and sat stackers.  Accordingly, we had mostly UPpity BTC price movement since early September 2020, and sure we might suggest that January was a decently sized correction in terms of both quantity of correction and duration from $42k to slightly sub $30k, and sure maybe we might also consider our current BTC price correction from $58,354 to $44,846 to be significant, even though it has ONLY lasted about 4 days, so far.

I guess my point remains that BTC price movements need NOT be explained by merely a few events or news, and even with bullish happenings and ongoing BTC UPpity price pressures, there may well be some powerful folks who are working on the other end of such price pressures because very often there can be decent amounts of advantages to concretely cause the BTC price to go in the opposite direction of expectations, at least in the short term, and whether such short term movements are sustainable or create momentum in that direction does seem to be a question of a variety of factors and many of us might neither know what resources are being thrown at the matter or be sure which way the BTC price is going to go in the short term, even if we have our own theories regarding what is happening, why it is happening and what price pressures might end up prevailing - even if we are merely assigning probabilities that skew a 50/50 assessment in one direction or another.

Regarding coinbase saving MS several million dollars, there is likely not an issue with that, whether it was waiving or lowering fees for a real BIG player.. seems normal kinds of business practices to attempt to attract BIGGER players.

Let's not go into conspiracy theories and assume what a company like Coinbase can or can't do - if we accept that all participants in the process play by the rules, that's probably the easiest way - we can't prove anything anyway.

I thought that you were leaning on conspiracy theories and that I was somewhat suggesting that it is likely normal that exchanges are going to court some of the bigger players... I could give few shits either way in terms of the details of such an arrangement.. and sure, I was not even intending to presume any laws were broken or even moral standards, even though my earlier response to you was presuming that you were making those kinds of assertions about the relationship between CB and MS.

Yes.. Saylor offered to help Musk in buying BTC.. and Musk seems to have agreed, but Musk is his own man, too.. so I doubt that Saylor can tell Musk how to tweet or the extent to which Musk should troll tweet or whatever Musk does with his tweets.

Since Saylor helped Musk make almost $1 billion in a very short time, I guess a friend can return the favor and shake up the market a bit

Look who is going into conspiracy theories.   

Musk is a very strange person, and when you look at the history of his tweets it's hard to tell what's going on in his head at some point

I cannot really argue with you in regards to such overall conclusion that Musk does act pretty strange sometimes... maybe even frequently?

- because how do you explain that a man who invests $1.5 billion in BTC says he thinks the price of that same BTC is too high...

I don't know.  does not really matter too much to me because I don't really buy into various single factor theories in regards to BTC price movements, and if there might happen to be some dominant explanations, then frequently there are other factors going on behind the scenes, as well, that likely contribute to BTC price moves.  For example, there may already be momentum or loss of momentum and then some announcement might merely end up exacerbating an existing condition by either making the price move happen sooner or to happen greater than it might otherwise happen, but in the end, it still remains a BIG SO FUCKING WHAT?, at least in terms of trying not to be razzled by short term BTC price moves. 

Personally, I believe that one of the ways to be a whole hell of a lot less razzled by short term BTC price moves or even NOT to be bothered when BTC price moves way farther and lasts way longer than expected is to attempt to take advantage of such moves by letting the BTC price come to you and to buy on the way down and sell on the way up... sure easier said than done because, also in my opinion, you better make sure that you have established your BTC position quite well before you start fucking around with selling any BTC in order to try to accumulate more, so until you actually accumulate a decent BTC position, you likely ONLY employ one end of the formula which is buying on the way down, buying regularly and HODLing when you run out of money to buy.. and maybe if the BTC price stays down after you had already run out of money, you then go earn more money or wait for your cash to come in so you can buy more and continue to buy more.. whether on dips or merely just buying regularly until you reach your BTC accumulation goals.. .. so personally, I believe that those are ways to attempt to deal with stresses about short term BTC price movements by trying to create and maintain systems that you personally feel that you are advantaging yourself to the best of your abilities and thinking somewhat long term in the whole scheme of things. 

Some people are in a position in life in terms of wealth, cashflow etc. to reach their BTC accumulation goals in a year or less, and others have to take years, maybe even 10 to 20 years, depending on various personal circumstances to reach such reasonable and personally tailored BTC accumulation goals.

[JayJuanGee]

I was very surprise about the amount of money MicroStrategy keeps committing into Bitcoin, I don't know who is helping them to do their trading but buying around this price shows something, they know the price can still go very high or they believe that their business model won't give the profit they get from Bitcoin. What I was told was that Institutional investors don't buy the top but they way things are now, they are likely to buy the top in this market

I think that you are saying it wrong.

Sure it is possible that Microstrategy (and Saylor) are considering that BTC will make them money, but the most solid rationale that Saylor has used has been to describe bitcoin as losing value more slowly than any other asset... so perhaps, merely two sides of the same coin, even though I do consider such rationale differences to be important because there are reasons NOT to be holding dollars because you do not want your value to be losing relative to other assets.. but then holding bitcoin could be a bet that it will lose less than the dollar (at minimum) but also that it will likely end up appreciating greater than the dollar and greater than other assets (even though you do not necessarily need the latter part because not losing value as fast as the dollar can be a sufficient enough rational to at least put a decent percentage of your liquid holdings into bitcoin rather than keeping them in the dollar).

[fillippone]

Another month end, another buy from MicroStrategy:



https://twitter.com/michael_saylor/status/1366375915559792640?s=20

I guess we must get accustomed at this kind of announcement, as they made clear they are going to pour any cash Flow into their Bitcoin Stash on a monthly basis (look announcement number 6.

[oHnK]

Another month end, another buy from MicroStrategy:



https://twitter.com/michael_saylor/status/1366375915559792640?s=20

I guess we must get accustomed at this kind of announcement, as they made clear they are going to pour any cash Flow into their Bitcoin Stash on a monthly basis (look announcement number 6.

I would love to read your post, even though I also recently read their tweets.  You always provide good news related to BTC.  Just yesterday BTC touched the price below 45k USD, now it's starting to rise again towards 50k USD.  The company will continue to exert positive influence on crypto.  I feel enthusiastic about the high prices in the future, but remain alert of price corrections that could occur at any time.

[macson]

Another month end, another buy from MicroStrategy:



https://twitter.com/michael_saylor/status/1366375915559792640?s=20

I guess we must get accustomed at this kind of announcement, as they made clear they are going to pour any cash Flow into their Bitcoin Stash on a monthly basis (look announcement number 6.

I would love to read your post, even though I also recently read their tweets.  You always provide good news related to BTC.  Just yesterday BTC touched the price below 45k USD, now it's starting to rise again towards 50k USD.  The company will continue to exert positive influence on crypto.  I feel enthusiastic about the high prices in the future, but remain alert of price corrections that could occur at any time.

be aware of price corrections???

A market correction is divided into 2 concepts;

• The first correction concept is what occurs with decentralized coins: when the holders sell their coins/crypto assets
• The second correction concept is what occurs with centralized coins: when developers and holders sell their coins/crypto assets

Bitcoin in this case already has an #stronghand investor's.  I am sure they will not sell their Bitcoin which they HODL for a short profit.  maybe they ^{(in this case, I mentioned MicroStrategy)} will sell the Bitcoin which they HODL when the price of Bitcoin is $1 million/BTC. 

[fillippone]

Another day, another Microstrategy Buy.


https://twitter.com/michael_saylor/status/1367824821011296257?s=20

Another 205 BTC in the cold deposit.

Here the total recap:

[casperBGD]

yeah, it does seem that MicroStrategy does not give up, and buys every dip, but buys on rising as well

good for them, they are true believers and hopefully will be rewarded in the end, it is a risky business, but risk produce reward

[Dabs]

yeah, it does seem that MicroStrategy does not give up, and buys every dip, but buys on rising as well

good for them, they are true believers and hopefully will be rewarded in the end, it is a risky business, but risk produce reward

The risk today is not in owning bitcoin, but the risk is not owning any bitcoin. Said another way, before it used to be it was a risk to own bitcoin. Today it is a risk to not own any bitcoin.

[JayJuanGee]

yeah, it does seem that MicroStrategy does not give up, and buys every dip, but buys on rising as well

good for them, they are true believers and hopefully will be rewarded in the end, it is a risky business, but risk produce reward

That is what DCA'ing is.

We should not get distracted by the amounts, even though it does seem a bit strange to many of us who would suggest investing at smaller levels - especially when you have already established a certain stake, then you go into a kind of maintenance mode that is a bit less desperate.

I am not completely sure what MicroStrategy is trying to demonstrate with its actions (that I would largely characterize as aggressive DCA... and maybe even super aggressive because of the use of debt - even though the debt purchases may be classified more as lump sum - rather than DCA - and also as kinds of speculative attacks on the dollar since they have been high amounts and so publicly carried out), because surely it is carrying out such actions in a very public way and they had already established a decent-sized stake in BTC after the first couple of purchases.  

Maybe we could suggest that Saylor is in a kind of competition against other companies and other rich peeps because he had been going so aggressively towards putting his company at the top levels of quantities of BTC... but the sharing of the strategies does not really support a competition theory - even if a person could both compete and be open about it (like Microstrategy is doing) because of the corporate and rich person mindset resistance against bitcoin.. which ends up allowing for such open and blatant competition.  

Probably a more plausible theory is just that he really just considers himself to be "ahead of the game" on this one in terms of reading the various bullish cases for bitcoin that are really not so difficult for a smart person who is a bit of an adventurer to be ready willing and able to niche into such logical and decently-well backed up perspective.. in which he had already understood himself to be "late to the game" since the project had already been ongoing for more than 11 years when he got in. but there was still a kind of earliness in terms of the logicalness of the status of the then cycle (that we are still in).

yeah, it does seem that MicroStrategy does not give up, and buys every dip, but buys on rising as well

good for them, they are true believers and hopefully will be rewarded in the end, it is a risky business, but risk produce reward

The risk today is not in owning bitcoin, but the risk is not owning any bitcoin. Said another way, before it used to be it was a risk to own bitcoin. Today it is a risk to not own any bitcoin.

That's not what Microstrategy is doing.  They went way beyond the mere "owning bitcoin" and taking a reasonable stake.. so its very incomplete assessment to describe Microstrategy as "merely making sure that they have a stake" in bitcoin.

[fillippone]

I am not completely sure what MicroStrategy is trying to demonstrate with its actions (that I would largely characterize as aggressive DCA...

“Aggressive DCA”. I like it.

I understand that Microstrategy has a full incentive on being aggressive showing how successful is their strategy. Investing 10 millions each time, we are “forced” to compute the average and “rediscover” again they are 100% in profit now.
We all know the more CFO’s are impressed by this stategy, the better for all of us.

[Dabs]

MSTR is just buying. Period. I did not say they were doing the bare minimum of avoidance of risk as their playbook. Saylor has said in so many words and so many times, he will continually keep buying and putting more cash reserves into bitcoin, both personally and as a company.

My comment about risk in bitcoin was mentioned by other prominent bitcoiners and even traditional finance analysts as it applies to everyone else. The risk, for all of them, is not to own any bitcoin. Eventually, all institutions will have a small percentage of their treasury in bitcoin.

They will be buying every quarter, or every month.

[Karartma1]

Imagine when an increasing number of companies will start doing exactly that. One thing is if you and I plan our monthly recurring buys but if companies will do that it's a whole different story!
That will sounds like revolution to me! Come on, Michael, spread the bitcoin virus more.
Bitcoin the only virus that helps the host organism.
 

[JayJuanGee]

Imagine when an increasing number of companies will start doing exactly that. One thing is if you and I plan our monthly recurring buys but if companies will do that it's a whole different story!
That will sounds like revolution to me! Come on, Michael, spread the bitcoin virus more.
Bitcoin the only virus that helps the host organism.
 

DCA is already known to be a great strategy, so it really does not matter very much the size of your pockets in order to make the strategy effective.

One of the matters that works for Microstrategy, just like an individual, is sometimes it can be quite difficult for individuals to front load their investment, so they merely have to utilize and apportion their cashflow as it comes in, and sure there is some creativity that Microstrategy is using with the employment of debt, and sure sometimes individuals can get some access to debt to in order to have discretion over how they spend such debt, which could include buying bitcoin, and they are on much sounder ground if they have pretty high degrees of confidence in regards to the cashflow that they continue to have coming in to either service the debt or to continue to engage in DCA buying of BTC - or whatever other investments that they might make - and there are already quite a few folks who have recognized and appreciated bitcoin as the best investment.. not really a secret, except for folks who are unwilling or unable to see it.

[Vishnu.Reang]

Imagine when an increasing number of companies will start doing exactly that. One thing is if you and I plan our monthly recurring buys but if companies will do that it's a whole different story!
That will sounds like revolution to me! Come on, Michael, spread the bitcoin virus more.
Bitcoin the only virus that helps the host organism.
 

Gold ETFs hold more than $200 billion worth of gold. Imagine what will happen, if a fraction of that amount gets transferred to Bitcoin. Tesla's $1.5 billion purchase had such a huge impact. Imagine what could happen, if there is a $15 billion purchase. Central Banks hold around 35,000 tons of gold, worth close to $2 trillion. It is a long shot, but a portion of that wealth can also get transferred to Bitcoin. 

[fillippone]

MicroStrategy Buys Tranche #10:



https://twitter.com/michael_saylor/status/1370360546986430467?s=20

Spreadsheet updated!



This might be a new Template, given the frequency we have on those buys!

[Lucius]

If anyone believes in Bitcoin at the moment then it’s Michael Saylor, because I have a feeling he’s willing to sell his skin too to buy at least 1 BTC more. Looking at the spreadsheet, it is easy to notice that the amounts in the last 3 purchases have decreased significantly - does that mean that there is less and less money, or could a purchase of 10 000 BTC or more happen again?

It may be a stupid question, but this new stimulus that is just happening in the US is not only aimed at ordinary citizens but also at companies? Does anyone know if MicroStrategy is among those who will receive part of this stimulus? If by any chance they get it, there is no doubt where the money will end up