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

[AakZaki]

-snip-

So, what do you think saylormooners?

I laughed When you wrote "the saylormooners" Lol.. in other words, are Saylormooners devotees of that DCA?
As far as I'm concerned, the DCA narrative has always been associated with a big company like this Strategy, as I argue about DCA it wouldn't be useful in a bearish cycle like it is now. Evidently, even their Adoring Strategy, now not continues to buy but also sells its Bitcoin during the bearish cycle.

Even Strategy is now bearing a floating loss because the price of Bitcoin is falling, instead of for almost 6 years to make a profit, it is the floating loss that is currently being faced.

Just In:

Strategy sold 32 BTC for $2.5M at ~$77k each, its first sale since 2022,

Are you sure Strategy has only sold its BTC since 2022? because according to the data written on their site there are different notes written in parentheses (32) of BTC, in those parentheses is a notice that they have sold their BTC.

Meanwhile, those written from 10-08-2020 to 18-05-2026 do not have parentheses markers as is done now.

source: https://www.strategy.com/purchases

[Free Market Capitalist]

I laughed When you wrote "the saylormooners" Lol.. in other words, are Saylormooners devotees of that DCA?

You’ve been laughing so much that you haven’t even realized that Strategy doesn’t practice "DCA"; he does the worst possible kind of dDCA, which I call “reverse DCA,” and I’ve said this a thousand times on the forum: he’s been buying a lot when the price skyrocketed and little to nothing when it was falling, which has led to him currently being in the red, while some random karen who’s been doing regular DCA of $100 a month since August 2020—because their cousin told her to—has achieved a very good percentage return.

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.

Yeah, a test but Bitcoin falling whereas the stock market is breaking record highs I think it has a lot to do with it. If the market thinks that the biggest Bitcoin permabull—the one who was telling everyone to mortgage their homes to buy Bitcoin and who claimed he’d never sell—starts selling, even if it’s just a symbolic amount (at a loss, by the way, contradicting himself yet again), then it’s only natural that FUD sets in.

[Ambatman]

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.

I saw this and was thinking it wasn't true so came to this thread
The fact that the market and their stock tanked like this
Shows how much the market is psychological
Than pure numbers
Even if it was a BTC
They don't care what they see is Strategy has finally sold.
Lol still remember when Saylor said sell a kidney if you must but don't sell your Bitcoin.

You’ve been laughing so much that you haven’t even realized that Strategy doesn’t practice "DCA"; he does the worst possible kind of dDCA, which I call “reverse DCA,” and I’ve said this a thousand times on the forum: he’s been buying a lot when the price skyrocketed and little to nothing when it was falling, which has led to him currently being in the red, while some random karen who’s been doing regular DCA of $100 a month since August 2020—because their cousin told her to—has achieved a very good percentage return.

I believe what he's doing is what DCA mean
Not timing or trying to buy the bottom
Just pure consistency
And also they usually have more when the market is high than when it's low. So.
I would consider Reverse DCA has selling like the opposite or normal DCA.

[Just Say]

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.

Strategy sold 32 BTC, it may not be a big deal but we have already noticed that the news of their sale has shaken the BTC market as this is the first BTC sale by this company since 2022. Everyone saw this as this company sold 32 BTC for $2.5 million which was their second sale and they sold 801994 MSTR stocks at the same time. I was actually a bit surprised to hear about their sale because Michael Saylor had mentioned earlier that if Strategy sold one Bitcoin they would buy 10-20 Bitcoins.

[fillippone]

Yeah, a test but Bitcoin falling whereas the stock market is breaking record highs I think it has a lot to do with it. If the market thinks that the biggest Bitcoin permabull—the one who was telling everyone to mortgage their homes to buy Bitcoin and who claimed he’d never sell—starts selling, even if it’s just a symbolic amount (at a loss, by the way, contradicting himself yet again), then it’s only natural that FUD sets in.

The fact that bitcoin is downperforming every possible asset on the planet is making my head explode.
There is nothing so cheap as bitcoin, when every possible other asset, be it hard or not, is rallying like crazy.
This is off topic to this thread, but I need to understand this.

[Donneski]

Yeah, a test but Bitcoin falling whereas the stock market is breaking record highs I think it has a lot to do with it. If the market thinks that the biggest Bitcoin permabull—the one who was telling everyone to mortgage their homes to buy Bitcoin and who claimed he’d never sell—starts selling, even if it’s just a symbolic amount (at a loss, by the way, contradicting himself yet again), then it’s only natural that FUD sets in.

The fact that bitcoin is downperforming every possible asset on the planet is making my head explode.
There is nothing so cheap as bitcoin, when every possible other asset, be it hard or not, is rallying like crazy.
This is off topic to this thread, but I need to understand this.

I doubt that there's a candid explanation to what we're seeing lately in the market. Maybe the confusion is being peddled by people who are expecting BTC to not experience any surprise downtrend after the ETF and institutional adoption. At the main time, the traditional markets are capitalising from liquidity and optimism. I think it's normal for Bitcoin to have period where it underperforms then catch up later. This is the market's way of testing people's patience, it shouldn't be surprising.

[stompix]

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 the tip, I promise it won't hurt, you will like it, trust me, just the tip for a moment 

The fact that bitcoin is downperforming every possible asset on the planet is making my head explode.
There is nothing so cheap as bitcoin, when every possible other asset, be it hard or not, is rallying like crazy.
This is off topic to this thread, but I need to understand this.

BTC is downperforming for a small time frame in this mess of things, which generates this situation.
Too much money has been gained with way too little money, when people cash out millions they bought with thousands, you need billions just to stay afloat, in stocks, gold anythign else, people don't cash out because they've made x100 and don't care anymore, they slowly drain small profits, enough that new inflows of money keep the things stable.

It's going to get ugly before it gets better!

Oh, and btw, just an example of eazzzzy money,  50 guys getting 0.035 BTC per week for 3-4 years, was it?
Just the former gang, if we all still have our coins gained, could offset with a sell one of MS buys.

[fillippone]

Fred Kreuger posted on X a very interesting Workflow.
That summarises the decision tree for Strategy.




Coupled with the data at Strategy.com, it can give a very interesting path.

[Taskford]

Fred Kreuger posted on X a very interesting Workflow.
That summarises the decision tree for Strategy.




Coupled with the data at Strategy.com, it can give a very interesting path.

The created workflow of Fred offering a compelling visualization of Strategy's strategic decisions paths and this is actually made them easy to follow.

If we also look at the data from their site, it shows that their decisions is not random. But well planned or structured.

But still I'm curious to know their next possible action, especially that we have seen market is dipping more. Many expect that they are buying because there's an opportunity to accumulate Bitcoin at much cheaper price now.

[Ambatman]

Fred Kreuger posted on X a very interesting Workflow.
That summarises the decision tree for Strategy.




Coupled with the data at Strategy.com, it can give a very interesting path.

They just did sell Bitcoin when STRC was low when normally they just increase rate.
Cash can also be raised via ATM not just STRC.
I don't think selling Bitcoin should be a normal branch
Even if Strategy has been going back on their words I believe selling Bitcoin would be a last resort to them.

But still I'm curious to know their next possible action, especially that we have seen market is dipping more. Many expect that they are buying because there's an opportunity to accumulate Bitcoin at much cheaper price now.

If I'm not mistaken
STRC is currently below par and Cash Reserve is quite low
Common stock has obviously tanked.
Even if they did or are buying I wouldn't really expect much.

[alani123]

The issue is that the interest isn't good enough to support the price to rise much if at all. The yield amplification at even a 90% STRC isn't that great. With BTC falling and long term outcomes seeing bleak it's up to question even if it repeg during the time of the dividend this time around.

[fillippone]

The issue is that the interest isn't good enough to support the price to rise much if at all. The yield amplification at even a 90% STRC isn't that great. With BTC falling and long term outcomes seeing bleak it's up to question even if it repeg during the time of the dividend this time around.

It will close the gap and trade at par around the dividend date.
But also this explains why Strategy is pushing so hard to make the dividend payout bi-monthly: so the arbitrageur are more disadvantaged selling after the dividend date.

[alani123]

The issue is that the interest isn't good enough to support the price to rise much if at all. The yield amplification at even a 90% STRC isn't that great. With BTC falling and long term outcomes seeing bleak it's up to question even if it repeg during the time of the dividend this time around.

It will close the gap and trade at par around the dividend date.
But also this explains why Strategy is pushing so hard to make the dividend payout bi-monthly: so the arbitrageur are more disadvantaged selling after the dividend date.

We'll get a better sense on if this trick will work starting June 15 when Strive's SATA stock will have daily dividends for an annual 13% APR. They took what microstrategy is doing and made it even a little more crazy.

But I'm getting a feeling that with BTC down the whole models is more prone to collapse.
The reality is that Microstrategy could even opt to stop the dividends. STRC and MSTR holders have a bit of a conflicting interest here.

[The Sceptical Chymist]

Oh, and btw, just an example of eazzzzy money,  50 guys getting 0.035 BTC per week for 3-4 years, was it?
Just the former gang, if we all still have our coins gained, could offset with a sell one of MS buys.

I think I know what you're referring to with the above statement, but unless that gang was independently wealthy down to the very last person and thus didn't need to get rid of the BTC you mentioned, it's just a mental exercise in what could--but won't--happen.

Woke up this morning to see bitcoin well below $70k.  First thing I thought of was Michael Saylor, this thread, and what he might do should bitcoin continue to fall (which I'm not hoping will happen, btw).

Just the tip.

[JayJuanGee]

Oh, and btw, just an example of eazzzzy money,  50 guys getting 0.035 BTC per week for 3-4 years, was it?
Just the former gang, if we all still have our coins gained, could offset with a sell one of MS buys.

I think I know what you're referring to with the above statement, but unless that gang was independently wealthy down to the very last person and thus didn't need to get rid of the BTC you mentioned, it's just a mental exercise in what could--but won't--happen.

Woke up this morning to see bitcoin well below $70k.  First thing I thought of was Michael Saylor, this thread, and what he might do should bitcoin continue to fall (which I'm not hoping will happen, btw).
Just the tip.

For sure several of us had considered Saylor/MSTR to be somewhat of a genius, until he started to create products that required ongoing servicing in dollars (fiat) on a regular basis, especially the kind of servicing that greatly exceeded the cashflows of his underlying business (which of course, those cashflows are only a fraction of that needed to service outstanding debt).. .

So then the second thing that he seemed to have had recently screwed up was the paying off of some of his 0% interest debt that was not due to be paid off for more than 2 more years.. .. seeming to be kind of retarded, when he had created that cashpool that would have had allowed him to be able to service his dollar debts for a couple years into the future, at minimum, and perhaps even service that kind of fiat debt for very long periods if he would replenish that fiat from time to time to keep a reasonable fiat cushion.. but instead, he does the retarded thing (and gosh was it self-sabotage? He couldn't be that dumb, right?)

Then the third thing was the wimpy "test" sell?  Go BIG or go home.  Surely I would not have had been too rushed to sell any bitcoin, yet there could have been some better strategic way of accomplishing the sell.. and so the sell just came off as a bit weird, and maybe even having an opposite effect as expected, to the extent that selling 32 BTC was material to anything, more than it was symbolic, and bears (or MSTR haters) are trying to grasp onto anything negative that they can..

If they are able to continue to get folks to want to give them money to buy bitcoin, then I suppose that could work, yet it with such negative BTC price pressures of the past few days, it becomes harder to imagine the BTC price completely rescuing them.. but who knows?  I am not claiming to be an expert in regards to what kind of odds might exist that the bottom is already in at $59,100  from around 5 hours ago.. and that we can resume our UPpity... perhaps odds are less than 40%-ish?

[fillippone]

Oh, and btw, just an example of eazzzzy money,  50 guys getting 0.035 BTC per week for 3-4 years, was it?
Just the former gang, if we all still have our coins gained, could offset with a sell one of MS buys.

I wasn't part of the gang, at least not from the beginning.
I was late on that game.
Yes, I have all of those coins. And they have the forward value in my mind, the one I will use them, if I am lucky, not the past value, when I stacked them.

[Ambatman]

Woke up this morning to see bitcoin well below $70k.  First thing I thought of was Michael Saylor, this thread, and what he might do should bitcoin continue to fall (which I'm not hoping will happen, btw).

Just the tip.

Thanks to his genius supposed thinking he's short on Cash
The unrealised losses now is massive and his Trump card STRC rate would have to be increased to buy investors
I believe now his priority would be on improving their cash reserve and if he's stupid selling
Because it would cost them more than it would cost us.

[The Sceptical Chymist]

I took a few minutes to search for some of my posts in this thread (which surprisingly to me go back to 2021) and by happenstance came across this old one by fillippone:

This is a long, but really interesting read:

As a market leader, MicroStrategy is transforming how companies now approach their treasury reserve strategy. Download this playbook for a high-level overview of the key phases and steps MicroStrategy took in its initiative to adopt bitcoin as its primary treasury reserve asset.

---

MicroStrategy Bitcoin Initiative - Open Source Documents
These documents are being provided to serve as a resource to help as you navigate a corporate bitcoin strategy. As indicated in the documents, portions of the documents have been redacted due to their confidential and/or proprietary nature.

This is just an obvservation, not about MSTR's present problems: So that's how old the concept of crypto treasuries is?  I would have sworn it was something that just snuck up on the smaller, less-intelligent, but far greedier corporations in the last year or two.  Call me ye Blind Ol' Chymist, because I absolutely missed the above and/or any subsequent discussion of that particular subject.

This thread is going to be one of those that turns out to be an excellent historical record of the relationship that developed between companies and crypto--no matter how it turns out.

[Free Market Capitalist]

The issue is that the interest isn't good enough to support the price to rise much if at all. The yield amplification at even a 90% STRC isn't that great. With BTC falling and long term outcomes seeing bleak it's up to question even if it repeg during the time of the dividend this time around.

It will close the gap and trade at par around the dividend date.
But also this explains why Strategy is pushing so hard to make the dividend payout bi-monthly: so the arbitrageur are more disadvantaged selling after the dividend date.

With the price currently at $93 and the bitcoin purchased returns—which are supposed to pay 11.5% interest or more—at -20%, I highly doubt it. That's a -31% negative spread.

The only way it could get close to $100 again is if the price of Bitcoin goes up.

More and more knowledgeable people are criticizing the model. A few years ago, you only heard from Peter Schiff, and since he also says Bitcoin is a Ponzi scheme, none of us paid him any attention. But as I mentioned in another thread, here are some videos from someone very knowledgeable about Bitcoin who analyzes what’s happening in great detail.

If anyone wants to see the best critical analysis of the company that has been done recently, they can watch these two videos.

How MSTR Can Go To Zero

More Thoughts On Michael Saylor and Strategy

The guy who makes the videos isn't just anyone—he's a hardcore Bitcoin enthusiast with extensive technical knowledge who was once praised by Saylor and who conducts a thorough mathematical analysis of the company, while also highlighting Saylor's many contradictions.

If anyone wants a summary of the videos, just enter the URL into Gemini, and it'll summarize them for you in a flash.

There is a very simple reason why 80% of STRC investors are retail investors. Institutional investors know how to do numbers, so they won't fall for the trap of thinking that STRC is a safe investment, similar to a bank deposit, when if you read the fine print in the ad itself, you'll see that it says the opposite.

You do some simple math and see a -31% discrepancy between what you’re paying and the asset on which that payment is supposedly based, and you realize it’s a ticking time bomb. Especially since there’s no sign that Bitcoin’s price will make a miraculous recovery this year—which would be the only thing that could save the business model.

That’s just Strategy, but most of the copycats are even worse off.

[SatsPH]

And Saylor posted his "The Four Ideologies of Bitcoin".



https://x.com/saylor/status/2062853047991103638

And for those who doesn't want to scroll:

Conclusion
The future of Bitcoin will be shaped by the interaction of Maximalists, Capitalists, Technologists, and Fundamentalists.
Maximalists remind us that Bitcoin is the dominant digital monetary network and a historic breakthrough for humanity.
Capitalists remind us that Bitcoin must integrate with the global economy to reach its full potential.
Technologists remind us that Bitcoin must remain secure, useful, and resilient as technology and threats evolve.
Fundamentalists remind us that Bitcoin’s core principles must never be compromised.
These ideologies are not merely factions. They are forces. Each protects something important. Each can also go too far.
The challenge for Bitcoin is to preserve what makes it unique while allowing it to become useful to everyone.
The mission is not to choose between purity and adoption, or between innovation and stability. The mission is to ensure that Bitcoin remains Bitcoin while the world builds on it.
That is how Bitcoin reaches its full potential.

So the four will have to work with each other, each one has it's own strengths. Bitcoin needs all forces to be healthy, we might agree to disagree. But in the end, everyone just highlighting different facets of the same reality, that Bitcoin is here is stay.