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

[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).

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.

This is a recap of the last two weeks:



STRC is going south.
I still think it's a BTC-led fluctuation, and it will reconverge toward 100 as soon as BTC price (hence Strategy credit risk) improves a little.

[alani123]

Does anyone know why the EUR denominated stock Microstrategy issued (STRE) isn't available on any broker platforms?
It supposedely trades on the Luxemburg stock exchanges but there seems to be absolutely no way for a retailer to access this product in the markets.

Is it because they didn't issue a KID yet? I can't understand why that would be done aside of giving institutionals an advantage.

[fillippone]

Does anyone know why the EUR denominated stock Microstrategy issued (STRE) isn't available on any broker platforms?
It supposedely trades on the Luxemburg stock exchanges but there seems to be absolutely no way for a retailer to access this product in the markets.

Is it because they didn't issue a KID yet? I can't understand why that would be done aside of giving institutionals an advantage.

STRE are meant to be sold to qualified investors only.

The STRE Stock is not intended to be offered, sold, or otherwise made available to and should not be offered, sold, or otherwise made available to any retail investor in the EEA.

https://www.strategy.com/stream

Retail won't be allowed to buy those instruments.

[alani123]

Well I can't understand the mindset microstrategy execs had when releasing a singular EUR instrument and simultaneously making it the only one of their instruments not accessible to retail. They're clearly targeting retail with all their range of instruments. Maybe they were too afraid of EUR regulation over retail protections? Maybe they'll release an updated KID later to make it accessible? Who knows.

[fillippone]

Well I can't understand the mindset microstrategy execs had when releasing a singular EUR instrument and simultaneously making it the only one of their instruments not accessible to retail. They're clearly targeting retail with all their range of instruments. Maybe they were too afraid of EUR regulation over retail protections? Maybe they'll release an updated KID later to make it accessible? Who knows.

Selling financial instruments to retail entails a series of regulatory costs and burdens, that apparently Stategy wasn't willing to take. European regulators are particularly keen on overprotecting retail investors. This translates to higher costs for issuers. This is why European capital markets are tiny compared to the US ones.

[Donneski]

This is a recap of the last two weeks:



STRC is going south.
I still think it's a BTC-led fluctuation, and it will reconverge toward 100 as soon as BTC price (hence Strategy credit risk) improves a little.

Looking at the weekly table, it obviously makes your point clearer. The previous week had stronger numbers across the board then this week just flattens out with BTC sitting around the same range.

It really does look more like BTC driven pressure than something breaking inside STRC itself. Once BTC slows everything else follows.

[Free Market Capitalist]

STRC is going south.
I still think it's a BTC-led fluctuation, and it will reconverge toward 100 as soon as BTC price (hence Strategy credit risk) improves a little.

What I think is that unless the price recovers before the end of the month, he will raise the dividend again based on a negative return of 9% on the underlying asset, when according to his hypothesis it should currently be a total return of 334%. These are really just simple matters of basic statistics, but whenever I watch interviews with Saylor, no one ever brings this up. The inconsistency in the numbers is glaringly obvious.

[HelliumZ]

According to an Orange dot announcement yesterday, Michael Saylor's MicroStrategy purchased 1,031 new bitcoins on Monday, with a purchase price of $76.6 million.
With this purchase of 1,031 Bitcoins, Michael Saylor's MicroStrategy's total holdings increased to 762,099 Bitcoins.

[Abuobyda218]

Bitcoin Magazine: Michael Saylor’s Strategy announces new $42 billion plan to buy more Bitcoin
Total plan :42 billion dollar
From MSTR: 21 Billion dollar
From ST$C : 21 Billion dollar

[Donneski]

Another +1,031 BTC added by MicroStrategy.

Saw this update from Saylor earlier today.  At this point, it feels like the size of each buy doesn't matter as much as the level of consistency we're seeing from MSTR. These recent additions might look small but they're quietly taking coins off the market and over time that steady pressure could have a bigger impact than one-off large buys.

It does make me wonder if they're seeing something about the long-term that many other big players are overlooking

[fillippone]

According to an Orange dot announcement yesterday, Michael Saylor's MicroStrategy purchased 1,031 new bitcoins on Monday, with a purchase price of $76.6 million.
With this purchase of 1,031 Bitcoins, Michael Saylor's MicroStrategy's total holdings increased to 762,099 Bitcoins.

As expected, pretty low buys, as STRC engine didn't churn any Bitcoin purchase last week.
Is Strategy forced to raise the dividend again in the coming months to keep the STRC price above par? This is going to be an interesting question, above all for the capacity of servicing the debt by Strategy.

[Free Market Capitalist]

Is Strategy forced to raise the dividend again in the coming months to keep the STRC price above par?

Technically, he isn't forceed to do anything, but since Saylor won't back down an inch even if the numbers don't add up, it's only natural that he'll go ahead and raise it. I think that only if the price doesn't quite reach $100 but is very close to it might he wait another month.

This is going to be an interesting question, above all for the capacity of servicing the debt by Strategy.

That’s another point: if you’re referring to the “debt” involved in paying dividends (as opposed to convertible notes), the company could actually suspend payments at any given time.

cash dividend is not guaranteed.

Source: https://www.strategy.com/stretch

The thing is, if he were to suspend the dividends for just one month, the whole house of cards would crash down.

[SilverCryptoBullet]

As expected, pretty low buys, as STRC engine didn't churn any Bitcoin purchase last week.
Is Strategy forced to raise the dividend again in the coming months to keep the STRC price above par? This is going to be an interesting question, above all for the capacity of servicing the debt by Strategy.

With habit and like addiction of Michael Saylor while without enough opposite strategists in Strategy to counter back his risky strategy and actions, he will continue raising devidends and purchasing bitcoins again. It's quite predictable until something considerably strategic changed from Michael and Strategy.

Technically, he isn't forceed to do anything, but since Saylor won't back down an inch even if the numbers don't add up, it's only natural that he'll go ahead and raise it. I think that only if the price doesn't quite reach $100 but is very close to it might he wait another month.

He isn't forced to do that but I consider him like a Bitcoin addictive, not simply a Bitcoin maximalist, while he is a terrible risk manager so without any external pressure, he will continue what he loves and addictive to do while in risk management aspect, it is very terrible.

[Donneski]

As expected, pretty low buys, as STRC engine didn't churn any Bitcoin purchase last week.
Is Strategy forced to raise the dividend again in the coming months to keep the STRC price above par? This is going to be an interesting question, above all for the capacity of servicing the debt by Strategy.

Source:  Saylor

Just saw this Saylor's “hunting bears” tweet now. You can tell that he's clearly not backing off anytime soon.
However, considering what you said about the STRC engine not really doing much last week, it makes me wonder how long they can keep things steady without tweaking the dividend again.
The confidence might be visibly too loud but it doesn't take away the fact that the underlying pressure you pointed out is still there.

[Ambatman]

Just saw this Saylor's “hunting bears” tweet now. You can tell that he's clearly not backing off anytime soon.

Well he can't even if he want to though I doubt he wants to
Always been bullish is what's best for Bitcoin.
I'm surprised he didn't use AI to generate an image of him and a Bear.

it makes me wonder how long they can keep things steady without tweaking the dividend again.

As long as its on par with $100 they have no reason to tweak it
And at the end everything boils down to Bitcoin performance.

[Abuobyda218]

Michael Saylor

The chart above was shared from Michael Saylor's Official X showing 30-day volatility with Bitcoin showing a high of 50% and STRC showing a low of 2%. Volatility basically refers to the risk of an investment, where the higher the volatility percentage, the greater the risk from that investment, and although the profit or loss is also higher with the risk. From this perspective, when examining 30-day volatility, Bitcoin's volatility has been the highest due to the Iran and Israel-America joint wars, but Michael Saylor's STRC has surprisingly become the least risky asset.

[Free Market Capitalist]

Michael Saylor

The chart above was shared from Michael Saylor's Official X showing 30-day volatility with Bitcoin showing a high of 50% and STRC showing a low of 2%. Volatility basically refers to the risk of an investment, where the higher the volatility percentage, the greater the risk from that investment, and although the profit or loss is also higher with the risk. From this perspective, when examining 30-day volatility, Bitcoin's volatility has been the highest due to the Iran and Israel-America joint wars, but Michael Saylor's STRC has surprisingly become the least risky asset.

That’s just another one of Saylor’s usual load of nonsense that you guys swallow whole without thinking. He’s comparing apples to oranges.

An asset with a relatively stable price that pays a dividend should be compared to fixed income, not that garbage comparison.

What he needs to explain is how, after nearly six years of buying Bitcoin, he’s paying an 11.5% dividend when he has a negative return on his Bitcoin purchases—which are supposed to be the basis for paying it.

[Ambatman]

That’s just another one of Saylor’s usual load of nonsense that you guys swallow whole without thinking. He’s comparing apples to oranges.

An asset with a relatively stable price that pays a dividend should be compared to fixed income, not that garbage comparison.

What he needs to explain is how, after nearly six years of buying Bitcoin, he’s paying an 11.5% dividend when he has a negative return on his Bitcoin purchases—which are supposed to be the basis for paying it.

And here I thought volatility was a feature and not a bug
MSTR should be the one there not STRC
He's trying to draw more people in because in a time of such uncertainty and crisis
Assets with less volatility are usually appealing
Since they help in protecting wealth.

[fillippone]

No purchases this week for Strategy!




We already knew STRC was going to hit a weak week:




But this means that Strategy didn't sell a single stock through their ATM program? Or that the same very program has been halted because of the improved 21b+21b offering?

[Donneski]

No purchases this week for Strategy!

Recently, they’ve been aggressive in their buys despite the downtrend movement of the market, so maybe they decided to pause, observe and be more tactical with their entries.

We already knew STRC was going to hit a weak week:

The market seems to be a bit uncertain lately so I think it makes sense that STRC reflects on that before making further purchase. That said, I'll be very concerned if they happen not to buy over multiple weeks.

But this means that Strategy didn't sell a single stock through their ATM program? Or that the same very program has been halted because of the improved 21b+21b offering?

It could be either of the suggestions you made but I doubt that the ATM was halted. It could just be that they didn't need the ATM this week.