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

[Ambatman]

 

They sell it as overcollateralized 5 to 1.

Each share of STRC is overcollateralized with bitcoin at a ratio of roughly 5-to-1, meaning that for every dollar of STRC issued, Strategy holds approximately five dollars’ worth of $BTC.

I believe this is about backing the dividends not the share value
It's like saying 5dollar of BTC in reserve for every one dollar of STRC dividends promised
So even if Bitcoin falls too dip
There would be collateral to cover STRC. It's more of their way of assuring investors


At the end of the day STRC isn't even collaterised legally
If I'm not mistaken it's an unsecured preference equity.

[Free Market Capitalist]

 

They sell it as overcollateralized 5 to 1.

Each share of STRC is overcollateralized with bitcoin at a ratio of roughly 5-to-1, meaning that for every dollar of STRC issued, Strategy holds approximately five dollars’ worth of $BTC.

I believe this is about backing the dividends not the share value

As I see it, different sources say different things. But it's wishful thinking anyway, as if the Bitcoin they had backed only that (the dividends or STRC shares).

If we go to the Strategy website, we see:

The Company’s preferred securities (STRF, STRC, STRE, STRK, STRD) are not collateralized by the Company’s bitcoin holdings and only have a preferred claim on the residual assets of the company.

Which contradicts what I've heard Saylor say.

At the end of the day STRC isn't even collaterised legally
If I'm not mistaken it's an unsecured preference equity.

Another thing that differs in how Saylor sells the product is this:

STRC is neither a bank deposit, nor FDIC insured, nor regulated in the same way, and does not have the same regulatory and other protections as bank accounts, money market funds, treasuries, or similar instruments and as a result may not be a comparable investment.

There are numerous videos in which Saylor pitches STRC as an alternative to savings accounts and bank deposits with much higher yield.

[fillippone]

I guess Micheal Saylor is a great seller, and of often a great Bitcoin Promoter.
Of course I wouldn’t take him as a best case for an investment advisor. He often referred to bitcoin investments in a not proper way.

[Free Market Capitalist]

I guess Micheal Saylor is a great seller, and of often a great Bitcoin Promoter.

That's right, he's a natural with words; he's a really good salesman.

I had something else in mind regarding STRC. It seems Saylor has finally found the sweet spot where, thanks to the dividend, the stock is fairly stable around $100 and he can ATM it. Last week's buying was already significant, and the fact that the price of bitcoin has risen this week while other assets have fallen (except for oil) is likely due in large part to this. But we'll have to wait at least a year to see how this turns out. I have quite a few doubts about the product, as I've mentioned in the thread; it looks like a pyramid scheme to me.

To be fair and find a possible positive aspect, I can say that if this continues to work, it could turn into a Bitcoin-buying machine during bear markets, which would help mitigate Strategy's main problem: until now he has bought a lot when prices were high and little or nothing during bear markets. But if I had to point out a potential downside, STRC doesn't have upside potential, but it does have downside potential. So far, the company has been able to offset the decline in the preferred stock price by increasing its dividend, but in a worst-case scenario, that might not work.

I don't have high hopes for MSTR, though, because the more Bitcoin he buys, the harder it becomes for people to pay high mNAVs. If he reaches one million Bitcoins, to pay a 1.2 mNAV, you'll have to wait until he buys another 200,000 Bitcoins to match the exposure.

[fillippone]

SInce I now master the strc.live website, thanks to @LFC_bitcoin, I can now foresee tomorrow purchase by Strategy.

If I am not wrong, this week Saylor is going to announce a pretty big purchase of bitcoins:





11,042 BITCOIN Bought via STRC ATM operations.
Last week, STRC accounted for 4,294 over 17,994 total purchases.

Wondering how may other they are going to buy with other means this week.

[Free Market Capitalist]

11,042 BITCOIN Bought via STRC ATM operations.
Last week, STRC accounted for 4,294 over 17,994 total purchases.

Wondering how may other they are going to buy with other means this week.

Last week, he obtained 2.38 times more dollars using MSTR's ATM than using STRC's ATM. If we extrapolate this and given that MSTR's mNAV is at 1.2, we can assume that Saylor continues to use MSTR's ATM as if there were no tomorrow. That could mean a total of 25,000 Bitcoins in total purchased, 7,000 more than last week. But I understand that’s the maximum estimate. Maybe if STRC’s ATM has worked better for him this week, he hasn’t ATMed as much MSTR, so the number is lower.

[Popkon6]

The math behind Strategy’s path to 1 million bitcoin by the end of 2026
The largest publicly traded corporate holder of bitcoin would need to buy roughly 6,158 BTC per week, a pace its exceeded often in recent months

Despite the bear market in bitcoin and crash in its stock price, Strategy (MSTR) has continued to add to its holdings, often at a furious pace.
Led by Executive Chairman Michael Saylor, the company held 738,731 BTC as of last Monday .
It would need to acquire an additional 261,269 BTC, about $22.2 billion worth at an average price of $85,000, to reach 1 million coins this year.
Source link: https://www.coindesk.com/markets/2026/03/14/the-math-behind-strategy-s-path-to-1-million-bitcoin-by-the-end-of-2026

Michael Saylor, under his leadership, is collecting Bitcoins every week for the MSTR company, and I think it will definitely be possible to purchase one million Bitcoins by the end of 2026 if they continue to purchase Bitcoins in this way. Because at the moment, the dip market is collecting a lot of Bitcoins, although the current share price has not prevented them from purchasing Bitcoins.
They are continuously purchasing Bitcoins at a regular rate, so of course I can definitely say with him that it will be possible to purchase one million Bitcoins by the end of 2026. Because they have 738731 Bitcoins in circulation, there are only 261269 Bitcoins left to purchase one million Bitcoins.

[Free Market Capitalist]

Michael Saylor, under his leadership, is collecting Bitcoins every week for the MSTR company, and I think it will definitely be possible to purchase one million Bitcoins by the end of 2026 if they continue to purchase Bitcoins in this way. Because at the moment, the dip market is collecting a lot of Bitcoins, although the current share price has not prevented them from purchasing Bitcoins.

Are you an investor in the company? If you are, it’s understandable that you’d be excited about the possibility, but if not, you have to realize that what he’s doing goes against the very purpose for which Bitcoin was created. He buys Bitcoins, stores them with a centralized third party (and even if he stored them himself, it would still be centralized), so as not to spend them—not as a peer-to-peer network. I understand that all the bullish news sells well: “he’s going to reach one million,” “he’s bullish,” “this is bullish,” but sometimes it’s better to look beyond the headline.

They are continuously purchasing Bitcoins at a regular rate, so of course I can definitely say with him that it will be possible to purchase one million Bitcoins by the end of 2026. Because they have 738731 Bitcoins in circulation, there are only 261269 Bitcoins left to purchase one million Bitcoins.

The article is based on the fact that he bought 17,000 bitcoins last week and will likely announce another large purchase this week as well. But two weeks ago, for example, he only announced the purchase of 592 bitcoins. To extrapolate those two weeks to the rest of the year is like counting your chickens before they're hatched. Reaching one million bitcoins by 2026 depends on STRC remaining ATMable and on his ability to continue ATMing MSTR and that's a big if.

[fillippone]

As expected, pretty big purchase!



Roughly 50-50 between STRC and MSTR ATM facilities.

[Ambatman]

As expected, pretty big purchase!

Bitcoin performance last week already showing effect on both their stock price and STRC
I'm curious when they would announce that they couldn't buy as much as they want
Not because of funds but there was no supply to meet it
For example it would take roughly 50 days for such amount of Bitcoin to be mined
Doesn't that mean the more Saylor can buy the more someone sold

[LFC_Bitcoin]

As expected, pretty big purchase!



Roughly 50-50 between STRC and MSTR ATM facilities.

I pray this continues because he is hoovering up supply. Even if it’s OTC, it will surely eventually tighten up supply so OTC supply is limited and exchange reserves begin to dwindle which means one thing, number up….right, RIGHT?

I suspect it’s not impossible that they will be able to hit 1MBTC by the end of 2027.

[JayJuanGee]

As expected, pretty big purchase!

Bitcoin performance last week already showing effect on both their stock price and STRC
I'm curious when they would announce that they couldn't buy as much as they want
Not because of funds but there was no supply to meet it
For example it would take roughly 50 days for such amount of Bitcoin to be mined
Doesn't that mean the more Saylor can buy the more someone sold

If Saylor/MSTR knows for sure that they are buying actual bitcoin rather than paper bitcoin, then of course, they have to get some of it off of the market (besides the new supply from miners), yet if they are not self-custodying their BTC, they might not have 100% assurance that all the bitcoin that they believe that they have bought are actually not being rehypothicated.

[Donneski]

As expected, pretty big purchase!



Roughly 50-50 between STRC and MSTR ATM facilities.

I pray this continues because he is hoovering up supply. Even if it’s OTC, it will surely eventually tighten up supply so OTC supply is limited and exchange reserves begin to dwindle which means one thing, number up….right, RIGHT?

I suspect it’s not impossible that they will be able to hit 1MBTC by the end of 2027.

I honestly want to believe that there's something Michael Saylor and his MSTR are seeing in the future about Bitcoin that many other whales aren't seeing. They're buying with so much conviction of making huge profits in the nearest future. If they keep accumulating at this pace, 1M BTC by 2027 I think is very much realistic.

The thing is these coins they're buying are being taken out of circulation so over time, the effect will surely start showing up in exchange liquidity especially if long-term holders keep locking their coins away.

[Free Market Capitalist]

I pray this continues because he is hoovering up supply. Even if it’s OTC, it will surely eventually tighten up supply so OTC supply is limited and exchange reserves begin to dwindle which means one thing, number up….right, RIGHT?

The problem with that argument is that you could have said the same thing last year, when Strategy bought about 200,000 bitcoins—more than were mined. But, yes, hypothetically, there could be a supply shock in the future due to Strategy’s purchases. Let’s see if and when that happens; we’ve been waiting for it for about a year and a half now.

I’d like to touch on an aspect that hasn’t been discussed much, which is the growing need to raise cash to pay dividends. When Saylor built up the cash reserve, it was enough to cover 30 months of dividends. Right now, it has dropped to 25 months with annual cash requirements for dividend payments currently slightly above $1 billion. It remains to be seen whether STRC’s ATM will continue at the same pace as in the past two weeks, and to what extent dividend payment requirements will rise.

[BlackBoss_]

I pray this continues because he is hoovering up supply. Even if it’s OTC, it will surely eventually tighten up supply so OTC supply is limited and exchange reserves begin to dwindle which means one thing, number up….right, RIGHT?

I suspect it’s not impossible that they will be able to hit 1MBTC by the end of 2027.

This is expected not only with purchasing demand from Strategy but also from Bitcoin Spot ETFs and big institutional investors. They are favorite with OTC markets for their purchases but with Bitcoin halvings, there are less (halved every 210,000 blocks) new bitcoins from future Bitcoin blocks while demand is quite opposite by becoming bigger with time, years and cycles.

Soon Strategy and other institutional investors will have move to Spot market for their Bitcoin purchases. It's time for the moon ride to be kicked off but I just hope the ride will slowly appear as I need more time for my bitcoin accumulation.

[ultrloa]

As expected, pretty big purchase!



Roughly 50-50 between STRC and MSTR ATM facilities.

I pray this continues because he is hoovering up supply. Even if it’s OTC, it will surely eventually tighten up supply so OTC supply is limited and exchange reserves begin to dwindle which means one thing, number up….right, RIGHT?

I suspect it’s not impossible that they will be able to hit 1MBTC by the end of 2027.

Everything will depends on the condition of their company on how they can able to stand those challenges they experience.

But their continuous accumulation shows promising signs that they are still in good shape and for now we don't see them lowering down their tone as they continue to believe that Bitcoin still a great asset to acquire for long term investment.  Maybe its early to tell if they can able to reach that 1m BTC target, but if they remain consistent to accumulate those same big purchases they made maybe they can reach that goal on that year you have stated.

This article from Coindesk is pretty much interesting https://www.coindesk.com/markets/2026/03/14/the-math-behind-strategy-s-path-to-1-million-bitcoin-by-the-end-of-2026 well let see if Strategy could able to hit that goal.

[Donneski]

I just saw this tweet from Saylor few minutes ago where he's reporting BTC Gain (~16k BTC in a week) not just purchases and I thought it was worth sharing since it somehow relates to the supply discussion point of @LFC_Bitcoin.

So It’s not just about buying and reducing supply anymore, MSTR is now showing the result of their strategy.

Saylor really is playing the long game here.

[Free Market Capitalist]

This article from Coindesk is pretty much interesting https://www.coindesk.com/markets/2026/03/14/the-math-behind-strategy-s-path-to-1-million-bitcoin-by-the-end-of-2026 well let see if Strategy could able to hit that goal.

Couldn't you have bothered to read a few posts above yours?

The math behind Strategy’s path to 1 million bitcoin by the end of 2026
The largest publicly traded corporate holder of bitcoin would need to buy roughly 6,158 BTC per week, a pace its exceeded often in recent months

Despite the bear market in bitcoin and crash in its stock price, Strategy (MSTR) has continued to add to its holdings, often at a furious pace.
Led by Executive Chairman Michael Saylor, the company held 738,731 BTC as of last Monday .
It would need to acquire an additional 261,269 BTC, about $22.2 billion worth at an average price of $85,000, to reach 1 million coins this year.
Source link: https://www.coindesk.com/markets/2026/03/14/the-math-behind-strategy-s-path-to-1-million-bitcoin-by-the-end-of-2026

Not only have you not read it, but of course you haven't read my reply either.

I get that in a thread that’s 156 pages long, you’re not going to read all 156 pages before replying, but the least you could do is read the posts on the page where you’re posting.

[fillippone]

This week, the price of STRC was constantly below 100, so they didn't sell any share.
Consequently, Strategy hadn't the STRC flywheel to receive funding for purchases.
Probably this week it will be a lighter week in terms of BTC purchases, as it often happens in the third week pf the month (after Dividend snapshot).

[Free Market Capitalist]

This week, the price of STRC was constantly below 100, so they didn't sell any share.
Consequently, Strategy hadn't the STRC flywheel to receive funding for purchases.
Probably this week it will be a lighter week in terms of BTC purchases, as it often happens in the third week pf the month (after Dividend snapshot).

For me, the question now is whether, if the same thing happens between now and the end of the month, Saylor will raise the dividend again—which would bring it to 11.75% this time. Given the trend, it’s clear that he will. And that, in my opinion, would only make the madness worse, since he keeps raising dividends based on nothing more than a fairy tale and his access to liquidity, which is what allows him to pay them.