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

[Taskford]

I understand where you coming from especially in respect to bitcoin being a decentralized asset.
But accepting Bitcoin shows as one of means they consider Bitcoin as one of a superior currency
And it's a form of stacking Bitcoin no matter how small
The bitcoin they buying is as a result of someone selling
So I'm not sure it changes much.
They could serve as a precedence that other goods company could implement which would in turn
Improve the price and trajectory of Bitcoin.

To me, spending bitcoin is using bitcoin, exactly like hodling bitcoin.
Also, spending bitcoin benefits all those who want to support people trying to make the bitcoin economy work in real life.
So I do support the "spend and replace" as well as using bitcoin to buy futile things like MSTR shoes.

Well I do hope that people knows about it and Bitcoin usage is not limited only by holding it for long term, because they can actually spend it depends on whatever they like and still it benefits the ecosystem.

Holding just proves that Bitcoin holds great long term value, then spending can also show us that this coin has real time purpose or usage. Then great sign that merchant adoption is growing.

That's why somehow I also think that using Bitcoin to buy those shares somehow helpful, because it can somehow help the bitcoin economy became more stronger. Since this proves that Bitcoin have utility and those purchases made will make those companies got encourage more to adopt Bitcoin.

[Free Market Capitalist]

I noticed few days ago that strategy has created their own Jordan's via collaboration
But payment method isn't even with Bitcoin.
It isn't even an option
This alone speaks volume to how strategy really views bitcoin
Smart choice
He could have at least pretend to accept Bitcoin as one of the payment method.

It's hypocrisy, basically.

A missed opportunity.
Maybe they don't want to encourage spending of bitcoin, as it is seen as a lesser virtue signaling behaviour rather than a compulsive stashing of sats?

A few years ago, the company spent sats on an employee rewards program using LN; I don't know if it still does. But it's yet another example of how he says one thing today and the opposite tomorrow.

How can the largest Bitcoin buyer not offer Bitcoin as a payment option for its merchandise?

Don't overthink it. For Saylor, Bitcoin will be whatever makes him the richest in dollars—the currency he argues should be the world's reserve currency. All the explanations he gives are after-the-fact rationalizations to help him achieve that goal.

[fillippone]

Don't overthink it. For Saylor, Bitcoin will be whatever makes him the richest in dollars—the currency he argues should be the world's reserve currency. All the explanations he gives are after-the-fact rationalizations to help him achieve that goal.

Saylor has gone rogue recently.
Since he has been "ousted" from MSTR management, he has focused on those slightly creepy AI videos about Bitcoin, and is overreaching with them.
I preferred the version where he explained his Bitcoin thesis to nocoiner in the first phases of the formerly knwon Microstategy.
I think he jumped the shark at some point.

[Ambatman]

Saylor has gone rogue recently.
Since he has been "ousted" from MSTR management, he has focused on those slightly creepy AI videos about Bitcoin, and is overreaching with them.
I preferred the version where he explained his Bitcoin thesis to nocoiner in the first phases of the formerly knwon Microstategy.
I think he jumped the shark at some point.

Well he still remains the Executive chairman after stepping down as CEO
So quite still in it.
I believe a reason could be that he had laid the ground works mostly on wishful promises
And was doing all that to gain support of strong Bitcoin supporters while Riding the Bitcoin cocktail
Now he's more relaxed though he has always posted those AI pics
And did talk a little about the clarity act since well it would be in their favour
But for educating? That has being a while doubt many would take the words of a man that goes back on his words serious
So is better he just remain under the radar.

[Free Market Capitalist]

Well he still remains the Executive chairman after stepping down as CEO
So quite still in it.
...
So is better he just remain under the radar.

The thing is, when things don't go as you'd planned—especially when you've become such a famous figure in the space world, someone who gets so much media attention—it's better to keep a lower profile, not in a radical way, but just to expose yourself less.

In addition, there has been a significant shift over the past year or two. Before, you would only hear Peter Schiff criticizing Saylor, whereas in recent months, many people in the crypto space—people who have long been supporters of his—are now criticizing him.

[fillippone]

In addition, there has been a significant shift over the past year or two. Before, you would only hear Peter Schiff criticizing Saylor, whereas in recent months, many people in the crypto space—people who have long been supporters of his—are now criticizing him.

That is not necessarily a bad thing, after all.
Often, the people who are idolised are just people "pumping the plebs-bags", or at least, appearing to do so.
There are only a few honest players in the space (as recent events have put in the sunshine).
I personally know many bitcoiners who have been openly against Microstrategy, even when the price wad pumping and the "There is no second best" narrative was working flawlessly.

[Ambatman]

The thing is, when things don't go as you'd planned—especially when you've become such a famous figure in the space world, someone who gets so much media attention—it's better to keep a lower profile, not in a radical way, but just to expose yourself less.

Well he's quite active on X
And majority of people don't even know phong and once Strategy is mentioned
Saylor name is always around the corner.
Imo if he wants to go a little off the spot light it would be hard as long as strategy is in it.

There are only a few honest players in the space (as recent events have put in the sunshine).
I personally know many bitcoiners who have been openly against Microstrategy, even when the price wad pumping and the "There is no second best" narrative was working flawlessly.

I understood that the aim of everything at the end was for profit
But I still enjoyed the way he supported Bitcoin then from his own little experience
Him buying Bitcoin showed some level of faith in the project

[ultrloa]

In addition, there has been a significant shift over the past year or two. Before, you would only hear Peter Schiff criticizing Saylor, whereas in recent months, many people in the crypto space—people who have long been supporters of his—are now criticizing him.

That is not necessarily a bad thing, after all.
Often, the people who are idolised are just people "pumping the plebs-bags", or at least, appearing to do so.
There are only a few honest players in the space (as recent events have put in the sunshine).
I personally know many bitcoiners who have been openly against Microstrategy, even when the price wad pumping and the "There is no second best" narrative was working flawlessly.

At this point I'm not surprised to see lots of people starts to question them, because we have saw for many times that idolizing someone from this space often backfires to people or their community.

Also Strategy is not the backbone of Bitcoin and they are just single player try to invest and earn with this coin. So they would provably do crazy things that benefits them, since this is how their company  survives.

But recent criticism towards their past actions and decisions shows that many people following them became more mature. Good thing about Bitcoin is well distributed, then adoption continue to grow and it does not rely on single companies fortune.

[Gragebox]

In addition, there has been a significant shift over the past year or two. Before, you would only hear Peter Schiff criticizing Saylor, whereas in recent months, many people in the crypto space—people who have long been supporters of his—are now criticizing him.

That is not necessarily a bad thing, after all.
Often, the people who are idolised are just people "pumping the plebs-bags", or at least, appearing to do so.
There are only a few honest players in the space (as recent events have put in the sunshine).
I personally know many bitcoiners who have been openly against Microstrategy, even when the price wad pumping and the "There is no second best" narrative was working flawlessly.

I believe that serves as an important reminder that we should not follow popular people/companies in the Bitcoin space. It does not make sense that just because some is famous, it is automatically correct whatever they say/decide. And the same applies to Micro Strategy. They have the most Bitcoin and feel strong about Bitcoin, but not all investors are the same, the same risk tolerance, financial plans, and financial position.

I also think that the expression "there is no second best" sometimes discourage people from thinking for themselves. Bitcoin supporters can have very firm beliefs, but good conversations require considering other perspectives instead of following the loudest ones.

All the recent events in the crypto industry showed why one should wait and do the research and not get personal gain and reputation in exchange for mere knowledge, security, and trust. My way of staying safe is doing a lot of reading and knowing what are the risks involved. It is not necessary that we have to agree with everyone, because we want to support Bitcoin.

[Ambatman]

But recent criticism towards their past actions and decisions shows that many people following them became more mature. Good thing about Bitcoin is well distributed, then adoption continue to grow and it does not rely on single companies fortune.

I won't say more matured
Strategy started going against what they stated even if the goal was justified
The means and the fact they had to lied doesn't really build confidence in the brand.
The good is they are where they are because of Bitcoin and their survival depends on Bitcoin
So even if they want to do something stupid they would have to consider this..

I also think that the expression "there is no second best" sometimes discourage people from thinking for themselves. Bitcoin supporters can have very firm beliefs, but good conversations require considering other perspectives instead of following the loudest ones.

Well The firm belief has backings towards it
And yes others perspective are considered
But majority are just re branded low quality copycat that are way worse than fiat itself.

[fillippone]

Bitcoin is back at 81K, yet STRC is still trading at 98.5, not even at the maximum it touched last Monday.
I am starting to give up on understanding what is happening to this object, which also has a 12% monthly dividend.
Looks like buyers want to leave it just slightly sub-par so that Strategy cannot lower the yield!

[Ambatman]

Bitcoin is back at 81K, yet STRC is still trading at 98.5, not even at the maximum it touched last Monday.
I am starting to give up on understanding what is happening to this object, that also has a 12% monthly dividend.
Looks like buyers want to leave it just slitghly sub-par so that Strategy cannnot lower the yield!

well unlike MSTR it's price isn't really tied to Bitcoin
Tbs in a bullish scenario like this I believe many would rather go for MSTR than for STRC
Strc sounds relatively quite appealing when the market is bearish than MSTR.
I'm guessing it's stems from the fact that it's harder to build trust than break it.


I usually ask myself
Would I invest in a share that fell almost 20% with a form of cap on $100 because of an annualized 12% pay
Even if it's paid bi monthly? I'm not too sure.

[fillippone]

Bitcoin is back at 81K, yet STRC is still trading at 98.5, not even at the maximum it touched last Monday.
I am starting to give up on understanding what is happening to this object, which also has a 12% monthly dividend.
Looks like buyers want to leave it just slightly sub-par so that Strategy cannot lower the yield!

well unlike MSTR it's price isn't really tied to Bitcoin
Tbs in a bullish scenario like this I believe many would rather go for MSTR than for STRC
Strc sounds relatively quite appealing when the market is bearish than MSTR.
I'm guessing it's stems from the fact that it's harder to build trust than break it.


I usually ask myself
Would I invest in a share that fell almost 20% with a form of cap on $100 because of an annualized 12% pay
Even if it's paid bi monthly? I'm not too sure.

Agree, but as STRC is almost a credit instrument, a rising bitcoin price should put Strategy in a much better position as far as equity risk is concerned. As long as the equity improves, the credit shall as well tighten, pushing STRC upward.
And yes, I do agree, I wouldn't touch STRC with a pole in this moment, also because, yes, the dividend is no 12%, but it can be easily set at a lower level.

[Gragebox]

well unlike MSTR it's price isn't really tied to Bitcoin
Tbs in a bullish scenario like this I believe many would rather go for MSTR than for STRC
Strc sounds relatively quite appealing when the market is bearish than MSTR.
I'm guessing it's stems from the fact that it's harder to build trust than break it.

Agreed. Because MSTR is so tightly correlated with bitcoin, in a bullish market, it will, in fact, draw additional eyeballs from folks seeking bitcoin-related exposure. STRC is dissimilar since its appeal is more income and security driven – which, in bearish or uncertain markets, can be very appealing.

Trust is another factor.

Once investors lose faith in a company or product, earning back that trust can be a lengthy and difficult process.

Agree, but as STRC is almost a credit instrument, a rising bitcoin price should put Strategy in a much better position as far as equity risk is concerned. As long as the equity improves, the credit shall as well tighten, pushing STRC upward.
And yes, I do agree, I wouldn't touch STRC with a pole in this moment, also because, yes, the dividend is no 12%, but it can be easily set at a lower level.

A higher Bitcoin price and better equity hedge profile (more coins, less leverage, more "V" hedge) can support credit and strengthen STRC if the price runs further. But the point is, the dividend rate is not set in stone at this level and the risk-reward for investing in it can be different depending on how this risk is handled. To me, it is worth waiting to see how it evolves rather than blindly diving in while the tech mania is already upon us.

[AmaGold70]

I wonder who is handling the custody of this for them.  That was probably the hardest part of the whole thing for them to work out.

I figure it could be Greyscale, or one of the exchanges (Gemini? Kraken? Coinbase?).  Could be Bakkt? Of course they could do it themselves, but that is a fairly serious security undertaking when $250MM is the amount of value.

Looking at the news I do not see that detail.

This amount of Bitcoin bought by strategy is really very huge, and not every company can take this kind of decision to purchase this amount of Bitcoin even when the fund is there. Michael Saylor of a truth so believed in Bitcoin, and I also understand that Bitcoin has not failed his own decision, and while some other investors are afraid making a huge stake in Bitcoin, Saylor is never discouraged about the potential of Bitcoin.

I believe Strategy must deploy the highest security measures to ensure their Bitcoin investment is very safe. This companies or exchanges you mentioned here are capable of guaranteeing the security or safety of such investment, and even though they are exchanges they have secured wallet that will be too hard for scammers to penetrate.

[ultrloa]

But recent criticism towards their past actions and decisions shows that many people following them became more mature. Good thing about Bitcoin is well distributed, then adoption continue to grow and it does not rely on single companies fortune.

I won't say more matured
Strategy started going against what they stated even if the goal was justified
The means and the fact they had to lied doesn't really build confidence in the brand.
The good is they are where they are because of Bitcoin and their survival depends on Bitcoin
So even if they want to do something stupid they would have to consider this..

Right now the big challenge for Strategy is to balance their honesty to people and their ambitions.

Because if they push to hard and keep lying to their community, they provably lose the confidence of people which keeps them invested on their company.

The backbone of their company is Bitcoin, any bad decisions or reckless action will put their company in uncertain position.

Agree, but as STRC is almost a credit instrument, a rising bitcoin price should put Strategy in a much better position as far as equity risk is concerned. As long as the equity improves, the credit shall as well tighten, pushing STRC upward.
And yes, I do agree, I wouldn't touch STRC with a pole in this moment, also because, yes, the dividend is no 12%, but it can be easily set at a lower level.

Even if there are people saying that STRC is promising, the problem aside that it does not offer guarantees, the problem is it can possibly offer much lesser result to their investors.

And this actually what make MSTR became top choice for their investors, since aside that they don't need to worry about the dividends they can also get more direct exposure on Bitcoin.

[Free Market Capitalist]

Bitcoin is back at 81K, yet STRC is still trading at 98.5, not even at the maximum it touched last Monday.
I am starting to give up on understanding what is happening to this object, which also has a 12% monthly dividend.
Looks like buyers want to leave it just slightly sub-par so that Strategy cannot lower the yield!

And don't forget one more thing. The company has been buying back STRC shares in an effort to help the stock reach par.

I usually ask myself
Would I invest in a share that fell almost 20% with a form of cap on $100 because of an annualized 12% pay
Even if it's paid bi monthly? I'm not too sure.

I think this is the crux of the matter. STRC had been purchased mostly by retail investors, since institutional investors typically take the time to analyze the product they’re going to buy much more thoroughly, and most of them hadn’t bought into the idea that it was a safe alternative to savings accounts and bank deposits, paying 12%. Retail investors, who were the ones who actually bought into the story, have seen the principal drop by 25% this year, and if it’s fallen that much this year, it could drop by 50% or more in the future.

Exactly what you’re saying is what many retail investors are thinking right now.

Anyway, if the price of Bitcoin goes up, both STRC and MSTR will go up, as fillippone says, but that's how things stand for now.

[Free Market Capitalist]

Nobody has mentioned that Strategy has started buying again? From what I can see in the Ledger, they've bought 950 bitcoins. If prices keep rising, they might buy quite a bit more in the coming weeks.

I used to follow Saylor's X on Nitter, but it stopped working because they received a cease-and-desist order.

In any case, from what I can see in the SEC filing, they've also repurchased quite a bit of STRC, but I don't see that they've sold anything; rather, they've used part of the cash they already had.

[Ambatman]

Nobody has mentioned that Strategy has started buying again? From what I can see in the Ledger, they've bought 950 bitcoins. If prices keep rising, they might buy quite a bit more in the coming weeks.

I used to follow Saylor's X on Nitter, but it stopped working because they received a cease-and-desist order.

In any case, from what I can see in the SEC filing, they've also repurchased quite a bit of STRC, but I don't see that they've sold anything; rather, they've used part of the cash they already had.

That's unlike them especially in not performing an ATM to make a purchase during a bull
I guess pushing that STRC is a bigger priority and it's posing harder than they might expect
If I'm not mistaken with the peformance this week I'm sure they already started buying while selling some shares
Their EV mnav is 1.22 I'm sure saylor can't let that slide.

[Taskford]

Nobody has mentioned that Strategy has started buying again? From what I can see in the Ledger, they've bought 950 bitcoins. If prices keep rising, they might buy quite a bit more in the coming weeks.

I used to follow Saylor's X on Nitter, but it stopped working because they received a cease-and-desist order.

In any case, from what I can see in the SEC filing, they've also repurchased quite a bit of STRC, but I don't see that they've sold anything; rather, they've used part of the cash they already had.

That news came out first when I open X today.

It seems people did not expect that they are going to buy now. That's why nobody talk about that purchase in this thread. But looks like they are now back in the game and will continue their series of purchases until maybe they hit that 1m Bitcoin holdings.

They have USD cash reserve right? so I think they used that funds in this recent purchased.