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

[Donneski]

Another week, another buy, anotehr dip:



A couple of interesting ghraph, to assess the current situation:

	Purchase History	mNAV

I had to go back to the first page of this thread which you started in 2020 and that really puts things into perspective. Back then, this move looked extremely risky but now, it almost looks methodical.

However, I’m curious. Do you think there’s a point where the size of Microstrategy holdings becomes a concern rather than a strength? Holding this much BTC is powerful but it also ties the company’s identity almost entirely to Bitcoin’s performance.

Either way, it’s fascinating to watch this strategy unfold in real time over the years through this thread.

[The Sceptical Chymist]

Do you think there’s a point where the size of Microstrategy holdings becomes a concern rather than a strength? Holding this much BTC is powerful but it also ties the company’s identity almost entirely to Bitcoin’s performance.

A concern to who?  As to the second part of your statement....if you've actually read this thread and have seen all of the purchases MSTR has made, the company became essentially a proxy for bitcoin a long time ago.

<snip> now, it almost looks methodical.

Either way, it’s fascinating to watch this strategy unfold in real time over the years through this thread.

Don't know about your or anyone else, but watching very wealthy people do methodical acts is the furthest thing from fascinating I can fathom.  Especially when it's Michael Saylor hyping up bitcoin to the point where a lot of other companies have tried to copy his bitcoin reserve model, to their own detriment.  You know it's bad when publicly-traded corporations begin acting like FOMO-eyed market newbies and ditch real businesses to become companies that only buy crypto and provide any real value to society.  You know, just like those suckers who follow youtube crypto influencers' every word.

As much as I like and have liked bitcoin for years, it and pretty much everything else in the world has been turned on its head and now belongs in a mental institution.

[Free Market Capitalist]

A couple of interesting ghraph, to assess the current situation:

	Purchase History	mNAV

Note that in the second chart, the mNAV has fallen below 1 since last November, reaching 0.86. Saylortracker probably calculates the mNAV differently from Strategy, which is something we discussed in the thread.

I had to go back to the first page of this thread which you started in 2020 and that really puts things into perspective. Back then, this move looked extremely risky but now, it almost looks methodical.

Yes, it was extremely risky.

However, I’m curious. Do you think there’s a point where the size of Microstrategy holdings becomes a concern rather than a strength? Holding this much BTC is powerful but it also ties the company’s identity almost entirely to Bitcoin’s performance.

It depends a lot. For me, the main problem is that the mathematics on which the model is based does not add up. Not only Bitcoin performance, but also the profitability it gets from the type of purchases it makes.

Also, the more he buys, the more centralized what was initially P2P becomes, but in this case it's not just Saylor, it's also CEXs and Bitcoin ETFs, as well as other products.

Don't know about your or anyone else, but watching very wealthy people do methodical acts is the furthest thing from fascinating I can fathom.  Especially when it's Michael Saylor hyping up bitcoin to the point where a lot of other companies have tried to copy his bitcoin reserve model, to their own detriment.  You know it's bad when publicly-traded corporations begin acting like FOMO-eyed market newbies and ditch real businesses to become companies that only buy crypto and provide any real value to society.  You know, just like those suckers who follow youtube crypto influencers' every word.

Saylor was the one who promoted that model from the beginning. I suppose he thought that with rising demand, the price would skyrocket, but we have seen major failures, such as Nakamoto-Kindly MD, about which I have responded to you in the other thread.

I think it will become clear that the idea that any failing business can be saved simply by buying Bitcoin and selling shares to buy it was a mirage.

[SilverCryptoBullet]

You know it's bad when publicly-traded corporations begin acting like FOMO-eyed market newbies and ditch real businesses to become companies that only buy crypto and provide any real value to society.  You know, just like those suckers who follow youtube crypto influencers' every word.

As much as I like and have liked bitcoin for years, it and pretty much everything else in the world has been turned on its head and now belongs in a mental institution.

Investors are different and institutional investors are different with each other too. Especially senior experienced institutional investors are different in their investment ways that are more wisely, strategic and profitable than newbie inexperienced institutional investors.

Like bank industry is a very old one but there are banks that even big but went bankruptcy. It's same with Bitcoin institutional investors even they observed this industry, tried to assess and learned from previous institutional investors, and even they tried to use a same strategy of senior successful institutional investors, they still have risk of failure and bankruptcy.

As it begins with how they manage finance and risk before starting their investment. Not all companies that try to build up their companies' reserve fund, treasury with Bitcoin are doing this wisely and safely.

[Donneski]

Do you think there’s a point where the size of Microstrategy holdings becomes a concern rather than a strength? Holding this much BTC is powerful but it also ties the company’s identity almost entirely to Bitcoin’s performance.

A concern to who?

Mostly from a market structure point of view. Not in the sense that MSTR is doing something wrong but in the sense that when a single public company accumulates this much BTC, it naturally becomes a significant market actor whose decisions can influence perception and volatility.

...the company became essentially a proxy for bitcoin a long time ago.

That’s actually what made me ask the question. When a company becomes a proxy for Bitcoin, it’s a strength during good times but it also means its corporate identity is almost inseparable from BTC’s performance. I find that dynamic interesting more than worrying.

<snip> now, it almost looks methodical.

Either way, it’s fascinating to watch this strategy unfold in real time over the years through this thread.

Don't know about your or anyone else, but watching very wealthy people do methodical acts is the furthest thing from fascinating I can fathom.

Fair point though I think what fascinates me is less about Saylor himself and more about how this thread by @Fillippone has documented in real time since 2020, how a move that looked reckless slowly turned into something that now looks intentional and systematic.

[Ambatman]

I think it will become clear that the idea that any failing business can be saved simply by buying Bitcoin and selling shares to buy it was a mirage.

Now imagine the genius that thought having an ethereum treasury company would be a smart move.
Them switching to Bitcoin imo was to catch the hype and was expecting them to bail out in the short term
But I guess the bull was shorter than they expected
A reminder about the dangers of leverage.

[The Sceptical Chymist]

I think it will become clear that the idea that any failing business can be saved simply by buying Bitcoin and selling shares to buy it was a mirage.

Um...that should already be crystal clear to anyone with an intact prefrontal cortex up in their noggin.  But biotech companies typically operate at a loss for much of their existence, and so when I see one that looks like it's basically said "fuck cancer research" and then demonstrates that its executives are just as bad as momentum traders, I just want to see them fail.  Yeah, that's an emotional reaction on my part but I find the business model of owning bitcoin/litecoin/rare coins/comic books/silver sex toys and hoping the line just-keep-on-a-goin'-up to be reckless for people who have a fiduciary duty to shareholders, and just overall stupid stupid stupid stupid. 

Mostly from a market structure point of view. Not in the sense that MSTR is doing something wrong but in the sense that when a single public company accumulates this much BTC, it naturally becomes a significant market actor whose decisions can influence perception and volatility.

Admittedly I have not read every single post in this thread, but I've gotten the impression as someone who's been following it on and off for quite a while that a lot of members would disagree with the part of your post above that I put in bold.  Vehemently.

Fair point though I think what fascinates me is less about Saylor himself and more about how this thread by @Fillippone has documented in real time since 2020, how a move that looked reckless slowly turned into something that now looks intentional and systematic.

"Looked reckless".  There's still a lot that has yet to be seen in the rear view mirror, i.e., at some point in the future there may still come a time when Saylor's decisions are judged reckless, perhaps decisively and perhaps to be written in the bitcoin history books with permanent ink--who knows?  In the grand scheme of things, five years isn't that long (although I do acknowledge that the more time that passes without MSTR going bankrupt, the more Saylor looks like a visionary or at least someone who's making sound business decisions).

[philipma1957]

Oh please Saylor obviously has hidden backers.

He will pass 1 million coins this year.

Maybe 2 million down the road.

Texas has a huge 24 billion dollar surplus in its budget.

They also have 20% of the worlds hashrate in their state.

They certainly can feed money to Saylor.

USA feds print the fucking money they could simply be passing cash into Saylors hands and eventually Saylor would turn over 1 million of the 2 million he ends up buying.

[Ambatman]

Oh please Saylor obviously has hidden backers.

He will pass 1 million coins this year.

Maybe 2 million down the road.

Texas has a huge 24 billion dollar surplus in its budget.

They also have 20% of the worlds hashrate in their state.

They certainly can feed money to Saylor.

USA feds print the fucking money they could simply be passing cash into Saylors hands and eventually Saylor would turn over 1 million of the 2 million he ends up buying.

I believe it gets harder as he gets close to the 1 million mark
Whether Bitcoin performs well or not.
Not performing well would make it harder for them to generate fund to buy more Bitcoin
As can be seen for some months now
And doing well means Bitcoin would be more expensive per dollar hence reducing the unit they can purchase.

[philipma1957]

Oh please Saylor obviously has hidden backers.

He will pass 1 million coins this year.

Maybe 2 million down the road.

Texas has a huge 24 billion dollar surplus in its budget.

They also have 20% of the worlds hashrate in their state.

They certainly can feed money to Saylor.

USA feds print the fucking money they could simply be passing cash into Saylors hands and eventually Saylor would turn over 1 million of the 2 million he ends up buying.

I believe it gets harder as he gets close to the 1 million mark
Whether Bitcoin performs well or not.
Not performing well would make it harder for them to generate fund to buy more Bitcoin
As can be seen for some months now
And doing well means Bitcoin would be more expensive per dollar hence reducing the unit they can purchase.

1 million is mortal lock

[ultrloa]

Oh please Saylor obviously has hidden backers.

He will pass 1 million coins this year.

Maybe 2 million down the road.

Texas has a huge 24 billion dollar surplus in its budget.

They also have 20% of the worlds hashrate in their state.

They certainly can feed money to Saylor.

USA feds print the fucking money they could simply be passing cash into Saylors hands and eventually Saylor would turn over 1 million of the 2 million he ends up buying.

I believe it gets harder as he gets close to the 1 million mark
Whether Bitcoin performs well or not.
Not performing well would make it harder for them to generate fund to buy more Bitcoin
As can be seen for some months now
And doing well means Bitcoin would be more expensive per dollar hence reducing the unit they can purchase.

This is provably a huge challenge company that need to break know the market is not doing well nowadays, but their recent action for consistently buying still show a good sign that their company still fine and despite of those challenges they are facing they show to their investors or people following them that they can still main their usual actions.

1m Bitcoin target? maybe road might get tougher, but there's still a chance that Strategy can achieve that target.

[Donneski]

...that a lot of members would disagree with the part of your post above that I put in bold.  Vehemently.

I figured that part might trigger pushback though but I didn’t mean it as a value judgment on MSTR, it's more as an observation about narrative concentration. When one company becomes symbolic of an asset, it can distort perception either positively or negatively.

There's still a lot that has yet to be seen in the rear view mirror...

That's very true. We’re still in the middle of the experiment not the conclusion. Saylor could end up being remembered as reckless, visionary or somewhere in between. It entirely depends on how the next cycles play out.

...the more time that passes without MSTR going bankrupt, the more Saylor looks like a visionary...

That’s actually the key point. Time is doing most of the judging here. Every year MSTR survives and compounds, the narrative shifts from “this is insane” to “this was foresight.”

[MarryWithBTC]

Oh please Saylor obviously has hidden backers.

Oh please… if saylor has hidden backers, they must be the worst-kept secret in financial history

He will pass 1 million coins this year.

Maybe 2 million down the road.

Operation feed saylor 1 million BTC 2026

maybe he will surpass satoshi's holding by millions.

It will just mean the free market allowed someone to accumulate more coins than the anonymous founder

Texas has a huge 24 billion dollar surplus in its budget.

They also have 20% of the worlds hashrate in their state.

They certainly can feed money to Saylor.

USA feds print the fucking money they could simply be passing cash into Saylors hands and eventually Saylor would turn over 1 million of the 2 million he ends up buying.

if the US government wanted BTC1–2 million , do we really think they will route it through a publicly traded company that reports every purchase? That would be the loudest secret operation in modern finance.

[Ambatman]

TBH when you think about it
Strategy doesn't really offer anything special except leverage access to Bitcoin
Without getting liquidated like a traditional leverage trade.

Their Strength then was Pre ETF gave exposure to people/institutions that couldn't access Bitcoin
And excelling in Bull market
I feel bad for people that bought when mnav was around 2X.


Spot may not make you Rich over night but at least it won't make you poor

[The Sceptical Chymist]

if the US government wanted BTC1–2 million , do we really think they will route it through a publicly traded company that reports every purchase? That would be the loudest secret operation in modern finance.

You've certainly got a good point there, and with Trump in office I'm not sure what the US government wants to do at his behest and what's simply bluster uttered for the sake of his ego in front of media camera lenses.  A superpower government collaborating with a publicly-traded company to do something that they could do right out in the open would only make sense if the president had 3 copies of chromosome 21 and there were no checks and balances to keep him in check.

[nikola22]

if the US government wanted BTC1–2 million , do we really think they will route it through a publicly traded company that reports every purchase? That would be the loudest secret operation in modern finance.

probably it's impossible to accumulate such a large amount of Bitcoin undetected these days given the number of onchain analytics platforms that track even relatively small BTC movements. conducting a secret operation on a literally transparent blockchain is too much, even for the US.

[Plutosky]

We disagree on this point. In my opinion, STRC is clearly a junk preferred stock, the worst kind, and the more the dividend rises while we are in a bear market, the more junk it is.

From what I gather, the strategy is basically:

1)We issue common stock to raise cash (when MSTR price is high)
2)We bump up the STRC yield just enough to push the price back to 100.
3)We use the STRC inflows to buy Bitcoin without issuing additional common shares.
4)We use the cash raised in step 1 to fund the STRC dividends.
5)The BTC yield on the common stock goes up (and so $MSTR should too) because, thanks to STRC, the BTC purchases are effectively non-dilutive.
6)Rinse and repeat from step 1.

It’s a bit convoluted, but it actually seems to be working.

[fillippone]

We disagree on this point. In my opinion, STRC is clearly a junk preferred stock, the worst kind, and the more the dividend rises while we are in a bear market, the more junk it is.

From what I gather, the strategy is basically:

4)We use the cash raised in step 1 to fund the STRC dividends.

Almost correct, but actually I think the STRC dividends are actually already ringfenced.
No need to sell MSTR shares to finance dividends and debt servicing for the next 30 months.
Price goes down because when market worsens, the Strategy credit rating worsens as well.

[Free Market Capitalist]

From what I gather, the strategy is basically:

1)We issue common stock to raise cash (when MSTR price is high)

Not exactly. They sell common stock as long as mNAV calculated by Saylor is above 1. It doesn't matter the price. The thing is, when the market is bullish they can sell much more that when the price goes down. That's a weakness of the model that could be softened if they didn't buy with all the money they got every week but that's not on the table.

2)We bump up the STRC yield just enough to push the price back to 100.

Correct.

3)We use the STRC inflows to buy Bitcoin without issuing additional common shares.

That's the theory yet, not carried out since they laid it out, like 8 months ago.

4)We use the cash raised in step 1 to fund the STRC dividends.

Almost correct, but actually I think the STRC dividends are actually already ringfenced.
No need to sell MSTR shares to finance dividends and debt servicing for the next 30 months.

Almost correct as well. The thing is, the reserve is there as a reserve so they are paying the dividends with part of the sales they achieve throughout the month. The reserve is not there to be spent; it is a reserve. Saylor recently said that it could be spent in the future to pay for convertible notes if necessary, but in the meantime it will remain untouched.

This means that dividends are paid either:
1. By diluting MSTR shareholders.
2. By finding new buyers for STRC, whose money is used, at least in part, to pay dividends to those who already own STRC, and it should not be forgotten that each new STRC share sold at ATM generates a new need.

5)The BTC yield on the common stock goes up (and so $MSTR should too) because, thanks to STRC, the BTC purchases are effectively non-dilutive.

You are completely mistaken here. BTC yield for MSTR was 23% in 2025 yet the stock was down 50% whereas Bitcoin only fell 7%.

]
6)Rinse and repeat from step 1.

It’s a bit convoluted, but it actually seems to be working.

Lol, yeah it's definitely working. Let me quote myself:

But we must not forget that in 2001 he agreed to pay an $8 million fine and rewrite his company's accounts to avoid jail time. If we are normally skeptical of company CEOs, in this case we should be even more so.

This was in the midst of the dot-com bubble, which caused MSTR's stock to collapse from $333 to less than $2.



That alone should make us think but I also think an overall picture should make us reflect.



With this, I think that being cautious about believing what he says is the least we should do.

This was my 10.000th post on the forum, lol.

[Ambatman]

This was my 10.000th post on the forum, lol.

You could have let it last longer so it would feel special. Congratulations by the way.

You are completely mistaken here. BTC yield for MSTR was 23% in 2025 yet the stock was down 50% whereas Bitcoin only fell 7%.

From an angle we can say it's correct
The reason for such disparity is as a result of leverage and dilution
If Bitcoin yield rises MSTR tend to rise with a form of multiplier
And if Bitcoin falls MSTR falls deeper
We can see the difference in performance at the close of 2024.