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

[Free Market Capitalist]

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.

Actually, no. What I've put in bold is false. I mentioned it here once, but I see that I'm going to have to explain it in detail because otherwise people won't understand. Bitcoin yield shouldn't amplify losses if the price of Bitcoin falls; it's the other way around, it should offset them.

I'll use round numbers to make it easier to understand, but they're not far off from the actual numbers. If the price of Bitcoin at the beginning of the year is $100K and at the end of the year it is $93K, and you had $1K in MSTR shares at the beginning of the year, with a Bitcoin yield of 23%, you should have $930*1.23, which comes to $1,143.90.

However, what happened in 2025 is that those who had $1K of MSTR at the beginning of the year ended up with $500 value of MSTR shares.

[Ambatman]

Actually, no. What I've put in bold is false. I mentioned it here once, but I see that I'm going to have to explain it in detail because otherwise people won't understand. Bitcoin yield shouldn't amplify losses if the price of Bitcoin falls; it's the other way around, it should offset them.

I was talking about share price. MSTR is tied to Bitcoin so it's biggest influnecer imo is bitcoin price.

what happened in 2025 is that those who had $1K of MSTR at the beginning of the year ended up with $500 value of MSTR shares.

like I stated before this was as a result of share dilution
And the fact that Mstr is considered like a form of leveraged to Bitcoin.
Yeah they are not specifically tied to one another but they are both influenced by Bitcoin price
Hence why I believe their direction keeping certain things constant
Should be the same but at different velocity.

[Free Market Capitalist]

I was talking about share price.

Me too.

MSTR is tied to Bitcoin so it's biggest influnecer imo is bitcoin price.

Well, "tied" is a somewhat narrow concept to express this. The price of MSTR is linked to the evolution of the price of Bitcoin, the Bitcoin yield, the evolution of the mNAV, and market fluctuations.

like I stated before this was as a result of share dilution

Yes, I agree with that, but it's not how Saylor sells it.

But what MicroStrategy is doing has been described as "accretive dilution," since issuing shares helps the company buy more bitcoin, thereby increasing its bitcoin per share.

Source: 'Selling $1 bills for $3': Why bond buyers and equity investors can't get enough of bitcoin-obsessed MicroStrategy

[Just Say]

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.

Yes, the 1 million Bitcoin target, this path may be difficult, but they have been buying Bitcoin regularly despite the massive collapse in the Bitcoin market due to the recent US political unrest in Venezuela and other countries, and are still doing so, so I consider that this path may be easy for Strategy, as evidenced by their systematic buying tendencies. Even we can see that the strategy aims to accumulate BTC regardless of market conditions because even if the price of Bitcoin drops to $8K, they will still tolerate it and have enough assets to fully covered their debt, the company noted today.

[Free Market Capitalist]

Even we can see that the strategy aims to accumulate BTC regardless of market conditions because even if the price of Bitcoin drops to $8K, they will still tolerate it and have enough assets to fully covered their debt, the company noted today.

Yes, it would have enough assets to cover the debt, but it would be the end of the company as we know it since 2020. In any case, I don't believe the price will fall that much. Saylor is trying to send reassuring messages to the market, and I think he's right to do so, as the evolution of the share price shows that the market doesn't believe his message. He has structured the debt intelligently to withstand bear markets much worse than his bullish outlook suggests.

But the problem with convertible debt is twofold. If he converts it into equity, it will dilute the shareholder's stake once again. If he cannot convert it into equity, it will be even more problematic, as it will mean that the price of Bitcoin has been much more bearish than expected, and he will have to raise cash to pay it off.

[fillippone]

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.

Yes, the 1 million Bitcoin target, this path may be difficult, but they have been buying Bitcoin regularly despite the massive collapse in the Bitcoin market due to the recent US political unrest in Venezuela and other countries, and are still doing so, so I consider that this path may be easy for Strategy, as evidenced by their systematic buying tendencies. Even we can see that the strategy aims to accumulate BTC regardless of market conditions because even if the price of Bitcoin drops to $8K, they will still tolerate it and have enough assets to fully covered their debt, the company noted today.

Their debt is convertible. So to "equitize" they have to get their common shares above a certain level.
Here you have a snapshot:



Getting the shares 5x by 2029 means Bitcoin getting to 350K at least.

Let's look at Power laws:



Possible? Yes.
Easy? No.

[laijsica]

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.

Yes, the 1 million Bitcoin target, this path may be difficult, but they have been buying Bitcoin regularly despite the massive collapse in the Bitcoin market due to the recent US political unrest in Venezuela and other countries, and are still doing so, so I consider that this path may be easy for Strategy, as evidenced by their systematic buying tendencies. Even we can see that the strategy aims to accumulate BTC regardless of market conditions because even if the price of Bitcoin drops to $8K, they will still tolerate it and have enough assets to fully covered their debt, the company noted today.

1 million Bitcoin target will not be easy but not impossible. We have seen the company (strategy) acquire Bitcoin even at the ATH level of Bitcoin. So far, they have maintained this consistency. If Bitcoin goes further down, they will be able to acquire more stacks with fewer dollars. Saylor's prediction about Bitcoin is not perfect but he is committed to continuing to accumulate Bitcoin.

See Saylor's acquisition list regardless of Bitcoin price:

https://www.strategy.com/purchases

[rdluffy]

Finally, Saylor managed to make a purchase, and on the day of posting, BTC is worth a little more, hehehe   


https://x.com/saylor/status/2023744880577548457

We can say that he bought the dip

[Ambatman]

We can say that he bought the dip

Well not anymore since the price is currently below $67500
But that doesn't mean anything in the grand scheme of things.
At the moment what they have to do is strive and if they can survive this winter which I believe
They would be worth way more than people would have expected.


On another note, I'm surprised nobody is talking about using ZKP to prove that they really have control over such number of Bitcoin
Would be nice to remove the paper Bitcoin narrative.

[KingsDen]

We can say that he bought the dip

This buying is becoming so aggressive.
I just believe he knows what he is doing .
The bear market might be longer than he thinks...

[Free Market Capitalist]

This buying is becoming so aggressive.

I wouldn't say so. It was more aggressive during btc high prices of late 2024 and early 2025.

I would highlight from this week that the money for purchases was obtained mainly from the STRC ATM, with a total of $785,354, while total sales with the common stock ATM, MSTR, were $660,000.

[Ambatman]

This buying is becoming so aggressive.
I just believe he knows what he is doing .
The bear market might be longer than he thinks...

The amount Of Bitcoin he has been buying Now is better than their purchases around end of Q3 and around Q4
But that's it, they have done better when they had access to more funds
But nonetheless generating this amount at a time like this shows promise.

I would highlight from this week that the money for purchases was obtained mainly from the STRC ATM, with a total of $785,354, while total sales with the common stock ATM, MSTR, were $660,000.

STRC becoming their cash cow. Hopefully this Bear market doesn't stay long and investors interest don't wane.

[Curious T]

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.

Why would the US government give Saylor money to buy Bitcoin for them? It doesn't make any sense. They can simply print the money and buy the Bitcoin themselves if they want to. Except they are doing some shady business with Saylor, I don't see why Saylor should buy Bitcoins for the US only to later turn them over to the government.

[fillippone]

This buying is becoming so aggressive.

I wouldn't say so. It was more aggressive during btc high prices of late 2024 and early 2025.

I would highlight from this week that the money for purchases was obtained mainly from the STRC ATM, with a total of $785,354, while total sales with the common stock ATM, MSTR, were $660,000.

I think the differentiation of the various instruments is a good thing for  Strategy. Separating the high-risk instruments (Shares) from the more "conservative" instruments is a good thing for the investors, and, indirectly, for Strategy as well, where they can finance their plans with a more diverse cohort of investors.

[Ambatman]

Why would the US government give Saylor money to buy Bitcoin for them? It doesn't make any sense. They can simply print the money and buy the Bitcoin themselves if they want to. Except they are doing some shady business with Saylor, I don't see why Saylor should buy Bitcoins for the US only to later turn them over to the government.

Because Printing more money won't help them again
Their debt is increasing by the day and not even slowing down
So they would avoid unnecessary printing to prevent inflation and fall in the value of their currency.
From what I have heard then most government make their investment by individuals
To hide their track and prevent been questioned for the source of their funds.

[Free Market Capitalist]

STRC becoming their cash cow.

That's how they sell it nonstop, but I don't believe it.

I have said this several times throughout the thread, but I see that I will have to repeat it again: STRC's dividend is based on a fictitious return.

1. It is paying an 11.25% dividend based on an asset that currently has a -10% return.
2. Even if the price of Bitcoin reaches the 30% CAGR that Saylor bases his model on in the future, the reverse DCA he uses means he gets much less. And when I say much less, I mean that Saylor gets 0% or less even if Bitcoin appreciates by 30%.
3. Each STRC share sold with ATM creates a new annual payment obligation of $11.25, meaning that if he sells $1 billion, he will have to pay $112,500,000 in extra dividends each year.

How is that a cash cow? It looks to me more like a cash hole.

[ultrloa]

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.

Why would the US government give Saylor money to buy Bitcoin for them? It doesn't make any sense. They can simply print the money and buy the Bitcoin themselves if they want to. Except they are doing some shady business with Saylor, I don't see why Saylor should buy Bitcoins for the US only to later turn them over to the government.

I also find no logic for government to do that, since they don't actually need Saylor just to buy Bitcoin in their behalf. If government want to buy BTC they can provably directly do that and help Bitcoin to build hype. Thinking about they are making Saylor as their middleman does not really add up something, but if there's some illegal situation happening or other hidden arrangement maybe this situation might going to happen, but I think this idea is just pure speculation and I don't think its happening in real time.

I wouldn't say so. It was more aggressive during btc high prices of late 2024 and early 2025.

I would highlight from this week that the money for purchases was obtained mainly from the STRC ATM, with a total of $785,354, while total sales with the common stock ATM, MSTR, were $660,000.

I think the differentiation of the various instruments is a good thing for  Strategy. Separating the high-risk instruments (Shares) from the more "conservative" instruments is a good thing for the investors, and, indirectly, for Strategy as well, where they can finance their plans with a more diverse cohort of investors.

Those kind of decision for separating those high risk instruments actually give their investors confidence and other choices. This also help them attract lots of investors which also help them to sustain their company and became sustainable.

[Abuobyda218]

What does Michael Saylor mean by saying he won't be more enthusiastic than this?

https://x.com/i/status/2024478354301231458

[Donneski]

That's how they sell it nonstop, but I don't believe it.

I share the same skepticism with you. Labeling STRC as a “cash cow” feels more like investor relations framing than economic reality. It’s financial engineering that depends heavily on market appetite.

STRC's dividend is based on a fictitious return.

That’s the uncomfortable part. If the underlying assets don’t produce real yield, then dividends are basically funded via leverage/dilution not productivity.

How is that a cash cow? It looks to me more like a cash hole.

Harsh wording   but actually not unfair. This setup works great in liquid markets but if conditions tighten, the downside gets ugly fast.

[Ambatman]

How is that a cash cow? It looks to me more like a cash hole.

My complete response showed that the Cash cow I'm calling it is in the short term in Been able to buy Bitcoin.
And relies on the Assumption everything goes well and investors interest don't wane.
He's taking a huge gamble not the first time hopefully this time is different.

STRC's dividend is based on a fictitious return.

Investors don't care much since its cumulative in nature and have higher priority.
If they fail now they would have to pay later keeping them going bankrupt constant.