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

[Taskford]

Michael Saylor may have hinted that he might buy a large amount of Bitcoin this week. The "big dot energy" on his chart basically means that he has bought a large amount of Bitcoin each time. If we look at the current market value of all the Bitcoins he has bought so far, it is about $64.23 billion, which is equal to the total GDP of several countries. His total Bitcoin holdings so far are 818,896. He also mentioned another thing on his chart that his average purchase price is much higher than the current market price. Maybe there is more big news waiting for Michael Saylor.source

And they already released their latest accumulation which is really huge https://x.com/saylor/status/2056344648478548205.





Amazing to see them doing that and for using such huge amount of money for buying Bitcoin this shows strong conviction on their long term investment with this coin.

They are close to hit 1 million Bitcoins https://www.strategy.com/purchases

[UpTober]

Michael Saylor may have hinted that he might buy a large amount of Bitcoin this week. The "big dot energy" on his chart basically means that he has bought a large amount of Bitcoin each time. If we look at the current market value of all the Bitcoins he has bought so far, it is about $64.23 billion, which is equal to the total GDP of several countries. His total Bitcoin holdings so far are 818,896. He also mentioned another thing on his chart that his average purchase price is much higher than the current market price. Maybe there is more big news waiting for Michael Saylor.source

And they already released their latest accumulation which is really huge https://x.com/saylor/status/2056344648478548205.





Amazing to see them doing that and for using such huge amount of money for buying Bitcoin this shows strong conviction on their long term investment with this coin.

They are close to hit 1 million Bitcoins https://www.strategy.com/purchases

When he posted this to his followers yesterday, I immediately assumed that a big explosion was waiting, and within a few hours, he confirmed the large amount of Bitcoin he had purchased.

[fillippone]

The week has ended: this is the forecast by strc.live



They assign 50% of the volume above par to bitcoin buying.
I am a little bit more aggressive than that.
I assign all the proceeds of STRC sales above 100 toward bitcoin buying, save the needed cash to maintain the dividend reserves at 24 months.
This would imply something more around 24,000 Bitcoins.
Huge, even if not record inflows.

And today we had:



Nailed it!

Maybe I was just lucky!

[fillippone]

As we discussed, Strategy wants to change the dividend payment in STRC from monthly to bimonthly:



This means the “arbitrageur” will have more difficulty buying the stock before the dividend date and selling it after the ex-dividend date. This would double their transaction cost.

On the contrary, the share will more likely float around 100 to get more inflows in a more continuous way.

[Free Market Capitalist]

As we discussed, Strategy wants to change the dividend payment in STRC from monthly to bimonthly:

...

This means the “arbitrageur” will have more difficulty buying the stock before the dividend date and selling it after the ex-dividend date. This would double their transaction cost.

We'll have to wait and see, because someone who buys 1,000 shares of STRC on IBKR now pays about $6, or $12 a month if we include the sale as well. The cost will nearly double to about $22, but that same person is earning $958 a month in dividends, so it doesn’t really hurt them much either. Not everyone uses low-cost brokers or buys 1,000 shares, but I think those who keep the stock’s trading volume high do.

[HelliumZ]

Michael Saylor invested in Bitcoin on Monday and made an announcement on Sunday, but this time he did not make an announcement like the previous time. Rather, this time this week Michael Saylor will not buy Bitcoin, but will buy bonds instead of buying Bitcoin.
One such announcement was tweeted from his official X account.

[Abuobyda218]

BitVac Charging...
Michael Saylor may be launching a new product called BitVac



https://x.com/i/status/2058566734722826598

[Free Market Capitalist]

Michael Saylor invested in Bitcoin on Monday and made an announcement on Sunday, but this time he did not make an announcement like the previous time. Rather, this time this week Michael Saylor will not buy Bitcoin, but will buy bonds instead of buying Bitcoin.
One such announcement was tweeted from his official X account.

HAHAHA! This is a fucking joke, and the worst part is all the people who take his jokes seriously every time he comes up with another bizarre idea.

So, what do you think saylormooners? Buying bonds is going to send Bitcoin to the moon?

[Ambatman]

HAHAHA! This is a fucking joke, and the worst part is all the people who take his jokes seriously every time he comes up with another bizarre idea.

So, what do you think saylormooners? Buying bonds is going to send Bitcoin to the moon?

I think it's high time a POR is conducted
I can't really recall what the debt was on convertible
But from what I saw which I would want to believe because I would like to give him the benefit of doubt
That he isn't that stupid
He's paying off some MSTR debts they owed when they borrowed cash.
So I believe he's talking about Convertible Bonds

[Free Market Capitalist]

That he isn't that stupid
He's paying off some MSTR debts they owed when they borrowed cash.
So I believe he's talking about Convertible Bonds

He isn't stupid at all.

If it were the convertible debt, it would make more sense, but buying government bonds wouldn't be surprising either—just as he built up a cash reserve.

The point is that, whatever the case may be, he's going to sell it as something extraordinary. And saylormooners are going to applaud anyway.

[avp2306]

That he isn't that stupid
He's paying off some MSTR debts they owed when they borrowed cash.
So I believe he's talking about Convertible Bonds

He isn't stupid at all.

If it were the convertible debt, it would make more sense, but buying government bonds wouldn't be surprising either—just as he built up a cash reserve.

The point is that, whatever the case may be, he's going to sell it as something extraordinary. And saylormooners are going to applaud anyway.

Whether they use bonds or debts, Saylor will try to spin it and make it a extraordinary actions done by his company. Even if the action still questionable still we could see that their followers still applause them on those action no matter what it is.

With that its like many people value more the story they create rather than looking at real situation happening in their company. Strategy is under pressure now and let's see how they could sustain their Bitcoin investment for much longer time.

[Floczy]

If only bro can add Gold to his Bitcoin investment 
Considering diversification for a company this big isn't bad idea you know

[fillippone]

The thing I don't like about this move.
I would have used the income from the STRC ATM facility.
They used their cash stash instead:



You see the "ringfenced cash reserve" as not that ringfenced after all, as it dropped from 22 months to 18 months to eventually be depleted to 6 months.

IT's only 2 weeks to the next STRC money inflows: I really hope they will use that fresh money to gauge this cash stash again.

[JayJuanGee]

If only bro can add Gold to his Bitcoin investment 
Considering diversification for a company this big isn't bad idea you know

Fuck gold.

[STT]

If only bro can add Gold to his Bitcoin investment  
Considering diversification for a company this big isn't bad idea you know

I'm going to say the oppisite, everyone should have some gold just like everyone should have some BTC.    The fact most of the world is carrying around paper IOU thinking they will be fine in ten years is a crime waiting to be discovered by horrified millions of people, a ton of pensioners will be far poorer then they ever expected.
  Alot of the QE done was balanced by forced buying into government pension funds, the true damage of that cheap printing will unfold over the decades people thought they had value saved.

    A bit of gold and I mean a bit because most people are modest, its no bad thing for the long term.    I got a single gold coin some years back, Im not rich, a couple years before BTC had its first block and its 10x which is ok not amazing but its not that difficult to see gold can do far better then paper for long term saving..

[Ambatman]

If only bro can add Gold to his Bitcoin investment 
Considering diversification for a company this big isn't bad idea you know

Keeping and having liquid cash isn't an investment
They usually needed.
It's a Bitcoin treasury company. Bitcoin
Though small and going obsolete they also into AI.

The thing I don't like about this move.
I would have used the income from the STRC ATM facility.
They used their cash stash instead:

I noticed this two days ago when I checked Strategy tracker
Cash reserve has fallen to around $600+ million from almost a three billion.

IT's only 2 weeks to the next STRC money inflows: I really hope they will use that fresh money to gauge this cash stash again.

They already stated they would refill their cash reserve
Albeit slowly.

I'm going to say the oppisite, everyone should have some gold just like everyone should have some BTC.    The fact most of the world is carrying around paper IOU thinking they will be fine in ten years is a crime waiting to be discovered by horrified millions of people, a ton of pensioners will be far poorer then they ever expected.

Same applies with Bitcoin
We have paper Bitcoins now.

[JayJuanGee]

If only bro can add Gold to his Bitcoin investment  
Considering diversification for a company this big isn't bad idea you know

I'm going to say the oppisite, everyone should have some gold just like everyone should have some BTC.    The fact most of the world is carrying around paper IOU thinking they will be fine in ten years is a crime waiting to be discovered by horrified millions of people, a ton of pensioners will be far poorer then they ever expected.
  Alot of the QE done was balanced by forced buying into government pension funds, the true damage of that cheap printing will unfold over the decades people thought they had value saved.

    A bit of gold and I mean a bit because most people are modest, its no bad thing for the long term.    I got a single gold coin some years back, Im not rich, a couple years before BTC had its first block and its 10x which is ok not amazing but its not that difficult to see gold can do far better then paper for long term saving..

We may be diverging into a wee bit of a tangent, since the original proposal that took us down this path seemed to be a suggestion that MSTR might be advantaged by adding some gold into the MSTR mix, which sure maybe there could be some advantage, yet I have my doubts.. even merely from an optical stance in terms of MSTR having some semblance trying to appear to mostly be focused on bitcoin or the creation/maintenance of bitcoin derivatives.. perhaps with a wee bit of a dollar pairing?

I will concede that there may well be situations in which some token amounts (perhaps less than 10% of the size of the bitcoin holdings) may well provide some level of utility and/or hedging against bitcoin and/or other macro systems - especially in places in which there might be some infrastructure in place for using gold (or at least exchanging it), and perhaps where the gold might not need to be transported within large-ish sizes through check points, such as over international borders or even some within nation policing checkpoint that might not be respectful towards property rights (of course, problematic with in-person thief situations, too).

Also, I will concede that even though bitcoin is in the ballpark of 1,000x inferior to bitcoin in terms of its money properties, such as verifiability, transportability, divisibility, costs in holding/transacting, and likely other properties, in the short-to-medium term, and perhaps even in the next 50-200 years, there could be some continued delays in which bitcoin's 1,000x superiority to gold is reflected in the price (referring to total market cap.. so right now bitcoin is in the ballpark of 1/20th of gold's market cap.. $1.5 trillion-ish versus $30 trillion-ish).

[Floczy]

We may be diverging into a wee bit of a tangent, since the original proposal that took us down this path seemed to be a suggestion that MSTR might be advantaged by adding some gold into the MSTR mix, which sure maybe there could be some advantage, yet I have my doubts.. even merely from an optical stance in terms of MSTR having some semblance trying to appear to mostly be focused on bitcoin or the creation/maintenance of bitcoin derivatives.. perhaps with a wee bit of a dollar pairing?

I will concede that there may well be situations in which some token amounts (perhaps less than 10% of the size of the bitcoin holdings) may well provide some level of utility and/or hedging against bitcoin and/or other macro systems - especially in places in which there might be some infrastructure in place for using gold (or at least exchanging it), and perhaps where the gold might not need to be transported within large-ish sizes through check points, such as over international borders or even some within nation policing checkpoint that might not be respectful towards property rights (of course, problematic with in-person thief situations, too).

Also, I will concede that even though bitcoin is in the ballpark of 1,000x inferior to bitcoin in terms of its money properties, such as verifiability, transportability, divisibility, costs in holding/transacting, and likely other properties, in the short-to-medium term, and perhaps even in the next 50-200 years, there could be some continued delays in which bitcoin's 1,000x superiority to gold is reflected in the price (referring to total market cap.. so right now bitcoin is in the ballpark of 1/20th of gold's market cap.. $1.5 trillion-ish versus $30 trillion-ish).

Your points are valid
But it was never of my intension to compare Bitcoin and Gold, of causes Bitcoin has some advantages over gold. But my point was that it wouldn't be a bad idea if MSTR will hold little amounts of gold, not to publicly or strategy shift, but it could be a form of risk management to some extent, or can even be considered as insurance if one will view it in from some angle

Nevertheless MSTR is a Bitcoin based company and I do understand and respect that, but my point of gold was basically for risk or insurance purposes, not that they should hold gold as well, although if they have some other good risk management it maybe the gold might not be needed

[Donneski]

If only bro can add Gold to his Bitcoin investment 
Considering diversification for a company this big isn't bad idea you know

Diversifying isn't a bad idea but you need to understand that every company has their objectives and will most likely stick to them regardless of the conditions.

Strategy's concentration is on Bitcoin, it's the best bet, you shouldn't expect them to invest in other assets for balance or whatever you think is the reason for such opinion. For a company that's continuously shown their strong conviction in BTC, investing in gold will make people especially intending investors to question their conviction.

[fillippone]

Just In:

Strategy sold 32 BTC for $2.5M at ~$77k each, its first sale since 2022, this is obviously a test as it is a minuscule part of the 843,706 BTC they are currently holding.
Just to understand, they raised 128.3M via shares sales the last week.

I would say nothingburger for the moment.