Microstrategy buys again!

[Ojima-ojo]

Microstrategy has been impressive with the amount of BTC they’ve been able to acquire. They will no doubt be one of the richest companies in the world if Bitcoin does continue its meteoric rise. There are a lot of advantages to owning Microstrategy over an ETF, and I only wish I would have grabbed some when it was at the lows. The future could be quite bright for them.

Boss I am sure you have at least grabbed some that can possibly take care of your personal investment plan at an individual level,  MicroStrategy as an institution has accumulated a lot of bitcoin over time,  even though their strategy of operation has not been advantageous in bitcoin mainstream adoption.


I am sure all investors have some elements and features of greed in them,  and even if the micro strategy has become one of the institutional adopters of bitcoin,  their support level has always been poor towards bitcoin,  but all the same, since the micro strategy has not sold any of their bitcoin holdings,  it points to one thing,  which is a scarcity of bitcoin even though at present they're already in profits but refused sell.

[1715106357]

1715106357

[el kaka22]

Honestly they are not "that" much in profit just yet, it is merely a bit higher than what they bought on average. However, if the price starts to go high, like really high as we expect it to go, something like 200k, that would mean they would have 30 billion instead of 4.5 billion. I think that would be a big deal and would really cause a lot of trouble for everyone involved as well.

Not only they will have hard time selling, because the amount is so big that they may not be able to find a buyer right away and can't sell in a single place neither. But also it would be bad for us since it would drop the price a lot if they end up selling as well. Another trouble is the accounting, them investing that much and then selling that much would be a big deal as well.

[buwaytress]

No surprise. After they (the board, whoever it was also in control of assets) didn't stop him from buying even more when he almost got margin called all those months ago, I fully expected him to continue in fashion.

I know it's not precisely on-topic, but I'm actually much more interested in how much Bitcoin the Norwegian sovereign fund added along the years. Been at least a couple of years since they made the news. Or did they sell at the 2021 peak?

[Husires]

That's right, I really don't see the point in the fact that every time MS makes a new purchase we have a few new threads. In addition, it should be pointed out that @fillippone well noted that MS could find itself in an awkward situation if the SEC approves an ETF which we talk about a lot these days.

No ETF will be approved soon, and even if it happens after more than two years, they may sell at the end of the next cycle.
MS will not be attractive to investors but there is no reason why it should not convert to an ETF.

I know it's not precisely on-topic, but I'm actually much more interested in how much Bitcoin the Norwegian sovereign fund added along the years. Been at least a couple of years since they made the news. Or did they sell at the 2021 peak?

how do they pay the price of Bitcoin, if it is from loans, then with the high interest and the time that passes, they will find themselves in a position of having to sell or liquidate some centers to provide liquidity to pay off the loans, to see how long they will continue to buy or even stop buying before selling.


The discussions in the main thread are in-depth and better, so it is better to lock this thread.

[Lucius]

No ETF will be approved soon, and even if it happens after more than two years, they may sell at the end of the next cycle.
~snip~

I wouldn't be so sure about that, because even though the SEC has rejected any such request in the past, companies like BlackRock or Fidelity are a whole other story and can't be ignored so easily. When you say that they can sell at the end of the next cycle, then I guess you mean investors who will actually get the opportunity to buy shares in a fund that will buy BTC for them and keep it safe. I think that some will sell sooner, some later - just as today people trade bitcoin on a daily basis, some are satisfied with 5% profit, others are not satisfied with even 50%.

[Eternad]

Its scary if they started to take profit from this, well this is how rich companies do nowadays, and those who holds more can have a great power and influence in the future. This might be one of the reason why the price pumps, and hopefully it will start from here. If they will hold half of the Bitcoin supply, that can be more scary for sure let’s see what’s their real goal for this one.

According to this website https://buybitcoinworldwide.com/microstrategy-statistics/ That track microstrategy DCA on Bitcoin. Their average buy price is $29,803 for their 140,000 Bitcoin aside from their previous purchased. They recent purchased is already their average buy price which means the current price makes them in profit and really very scary because we all know that they can take profit any time now.

Good news is they will not do this in bulk since the liquidity is not enough to absorbed all their holdings. They might wait for another leg up to slowly unload and wait until the new bull run cycle. It's dumb decisio for them to sell off their holding with the current price. Probably their last buy is to encourage retail to buy more to fuel the pump and use them as exit liquidity.

[SirLancelot]

Its scary if they started to take profit from this, well this is how rich companies do nowadays, and those who holds more can have a great power and influence in the future. This might be one of the reason why the price pumps, and hopefully it will start from here. If they will hold half of the Bitcoin supply, that can be more scary for sure let’s see what’s their real goal for this one.

Since their average buying price is at $29k, they might start taking profit after the price reaches maybe about $40k or something, but that is just an assumption and we cannot know how long they plan to hold on to their assets, they might not have a plan to sell very quickly because they probably know that Bitcoin has got great potential and it can greatly benefit the company, that is probably the reason why they have bought this much.

About them having half of the total Bitcoin circulation, I don't think they will do that at all because that will need a very huge capital and they can probably not be able to invest that much in Bitcoin or they might go bankrupt and even if they don't that will be an extremely high amount to put on risk since Bitcoin's price can go down as well.

[pawel7777]

Its scary if they started to take profit from this, well this is how rich companies do nowadays, and those who holds more can have a great power and influence in the future. This might be one of the reason why the price pumps, and hopefully it will start from here. If they will hold half of the Bitcoin supply, that can be more scary for sure let’s see what’s their real goal for this one.

If they continue that route, Microstrategy's stock price will be very highly correlated with the price of bitcoin. In a way, they could become something like an unofficial Bitcoin ETF. Which means shareholders don't necessarily have to sell bitcoins, that are held by the company, but instead, they could just sell a portion of their shares (or they could issue new shares).
I think the real threat is not them dumping for profit, but rather them having no choice but to sell when Bitcoin's price goes dangerously down.

[adaseb]

It would not surprise me if some institutions actually want MSTR to these institutions can own Bitcoin indirectly. Basically owning Bitcoin is considered risky but if they buy MSTR they can own it indirectly. So this way they don’t need to worry about custody. And MSTR already was out for many years so people trust it.

The more people that buy MSTR the more shares they will issue and more Bitcoin they will buy. And the cycle will keep repeating over and over again.

[jaberwock]

Microstrategy is in no way an indicator of anything or a significant enough force to control the market, so I see no reasons to care about what it is doing. They have been buying when the bear market only started, and it didn't help to reverse the course or stop the fall.

The last market cycle was driven by institutional adoption hype, somehow I doubt the next cycle will have the same hype, because people will look back and say "that didn't work in the end".

There is that law of supply and demand. MicroStrategy is a large company and they buy large amounts of Bitcoin. This is the reason why people are feeling bullish. Yet there might be other factors that can interfere to the supposed to be growth of the price after the actions taken by the company. Just don't mind them if they care about MicroStrategy. Sometimes people are also bored and they speculate the life of the others .

MicroStrategy is buying Bitcoin not only at the bear market. In fact their recent buy price for Bitcoin is at $29k. I think they are only doing a DCA strategy where they follow a certain date and not a market condition.

[pawel7777]

It would not surprise me if some institutions actually want MSTR to these institutions can own Bitcoin indirectly. Basically owning Bitcoin is considered risky but if they buy MSTR they can own it indirectly. So this way they don’t need to worry about custody. And MSTR already was out for many years so people trust it.

The more people that buy MSTR the more shares they will issue and more Bitcoin they will buy. And the cycle will keep repeating over and over again.

Exactly. That's especially true where there are no BTC spot ETFs available (BlackRock's application got rejected yesterday, with SEC claiming the filings were inadequate). In such case, some institutional investors, who are not allowed to invest in crypto directly, can view investing in MSTR shares as a proxy for investing in BTC.
But I wonder what would happen if they scaled down their other operations and become mostly a Bitcoin holding company. Will SEC allow that?

[Smitty Werben Man Jensen]

Very good news from Microstrategy because the current Bitcoin price is still worth buying,
for the past 2 weeks the Bitcoin price has been able to stay above $30k and this is the second weekend,
if the Bitcoin price does not experience a correction or dump below $30k then there is a high probability of an uptrend will continue for Bitcoin,
but for altcoins maybe some.

[topbitcoin]

Institutional Investor Behavior like this is enough to fear that most of the other investors, especially if the purchase they make above the purchase price made by Microstrategy, I also sometimes feel afraid of what if this institutional investor goes bankrupt, or they slam the price of bitcoin?.

Even more not comfortable when microstratgy has a large number of bitcoin in their wallet from the total supply of bitcoin in the market, surely the dominance will change someone's view that bitcoin can be controlled by one party who has a lot of bitcoin, or it could be they manipulate prices in the period front.

[CapGelatik]

Microstrategy really shows that they believe in Bitcoin even though it's currently bearish,
of course from institutional action we also have to follow it,
because most likely this is a sign that Bitcoin price can break the $31k resistance and head to $40k or $50k,
yes, hopefully will happened.

[JoyMarsha]

Its scary if they started to take profit from this, well this is how rich companies do nowadays, and those who holds more can have a great power and influence in the future. This might be one of the reason why the price pumps, and hopefully it will start from here.

I'm also scared as well. Let it not happen that they decide to sell all of their bitcoin holdings at once when the price has skyrocketed. As the price of Bitcoin soars, it will be wonderful for them to be gradually dumbing their bitcoin holdings little by little. But regardless of what they decide, bitcoin won't still fall drastically despite that, even though any action taken by them will have a significant impact on bitcoin price.

If they will hold half of the Bitcoin supply, that can be more scary for sure let’s see what’s their real goal for this one.

All the bitcoin bought by Saylor and his team, their real goal will be to sell bitcoin for profit. That's why they bought all their bitcoin holding at the average price stands of $29,668.

[Renampun]

...
You would think that this is bullish news, but, according to Coin Desk, Microstrategy's purchase announcements tend to have negative (short-term) impact on the price.
https://www.coindesk.com/markets/2023/06/28/microstrategys-bitcoin-purchases-tend-to-be-short-term-negative-for-prices-research-shows

to be able to control the market, the nominal bitcoin that must be owned by Michael Saylor must reach millions of coins, so with the amount they currently have, it will be difficult for them to be able to control the market. but I also don't think that the news about the purchase of bitcoin that he did will have a bad impact on the price of bitcoin right now, this is proven by the fact that in the last few days bitcoin has consistently been around $ 29k+ to $ 30k+

maybe for the next few days the price of bitcoin will remain at the current level, when the $31k resistance is broken then there is a high probability that bitcoin will reach a high of $35k+

[erep]

snip
but I also don't think that the news about the purchase of bitcoin that he did will have a bad impact on the price of bitcoin right now, this is proven by the fact that in the last few days bitcoin has consistently been around $ 29k+ to $ 30k+

maybe for the next few days the price of bitcoin will remain at the current level, when the $31k resistance is broken then there is a high probability that bitcoin will reach a high of $35k+

The negative impact is intended if the review of the performance data table after MSTR announced the purchase of bitcoin, but some data also proves that one week after the purchase of bitcoin by MSTR also has the potential to increase to 19% in December 2020. However, the average review fell -2% not from the impact buying MSTR but the market is undergoing a normal correction after experiencing a significant increase in the period one week ago. IMO.

[CarnagexD]

Microstrategy really shows that they believe in Bitcoin even though it's currently bearish,
of course from institutional action we also have to follow it,
because most likely this is a sign that Bitcoin price can break the $31k resistance and head to $40k or $50k,
yes, hopefully will happened.

Yes Saylor really have that belief on bitcoin’s future price and purpose. I remeber back then that it became a meme with Microstategy that whenever they buy BTC, bitcoin’s price is going lower. It’s like their buying became exit liquidity of other whales. It happened when  it topped on 60K, war on ukraine, and last remember 2021. They might be in a red portfolio right now, but since they are averaging price, soon that it will start to rise up it will also reap much of % percentage and dollars.

[spectre71]

I don't think is exactly in BTC to control any market or take profits and run

If you listen to the man talk he wan't to increase the value of his company and protect it against the dollar. Additionally it allows investors to invest in BTC indirectly that wouldn't normally be allowed to hold it directly.

Smart man

[KingsDen]

Very good news from Microstrategy because the current Bitcoin price is still worth buying,
for the past 2 weeks the Bitcoin price has been able to stay above $30k and this is the second weekend,
if the Bitcoin price does not experience a correction or dump below $30k then there is a high probability of an uptrend will continue for Bitcoin,
but for altcoins maybe some.

For the past 2 weeks bitcoin has been able to stay above 30k but not upto 31k. There was so much tension if the prive will choose to go downwards but today the bitcoin price showed upwards inclination above 31k which is a good sign and build up to next year bull run

MSTR has been a huge name saving Bitcoin for some years. I have known them for this and at sometimes I began to think who was behind the company. MSTR buying at this time is nice because some years ago I have seen them buy even during the bull market. I didn't know why they did that.