Microstrategy buys again!

[pawel7777]

Saylor and the team did it again. This time they bought 12,333 btc for around $347 million (between April 29 and June 27), increasing their total holdings to 152,333 btc ($4.52 billion).
The total average price stands at $29,668, according to Saylor's tweet:

https://twitter.com/saylor/status/1674025857063571456

Couple of related press hits:
https://www.bloomberg.com/news/articles/2023-06-28/microstrategy-s-mstr-saylor-makes-largest-bitcoin-purchase-since-prices-peaked#xj4y7vzkg
https://u.today/microstrategy-buys-12333-bitcoin-local-top-for-btc-price
https://www.coindesk.com/business/2023/06/28/michael-saylors-microstrategy-now-holds-over-46b-worth-of-bitcoin/

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

[goaldigger]

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.

[Wiwo]

Instituitional investors are the ones that have the ability to push the price in a particular direction as either to pumo it a also dump the price when their decided to cashout their profits, take micro strategy for example.

Their current bitcoin holding is enough to make a price impact if their decide to take any action, even if it doesn't have a long term effect on the price it short term impact will definitely be felt.

This is the reason why the call for institutional investors have been un the rise because as it have it postuve advantages on the market so there is also few negative impact on the market also, is vis visal.

[dunfida]

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.

Yes, and its just in fact the reality on which to those people/companies/institutions who do have the money would be always be having the advantage on which they would really be trying to accumulate as much as they
could in likes of Bitcoin on which we know that they would really be diving in into those things which would be giving out those opportunities on making more money. Microstrategy is really that wise on taking up such space and accumulating while we arent still in a bull run.Its true that it would really be giving out that kind of scary feeling that if these giants would really be loading off their bags then for sure it would
really create a huge long red candle in the market which is something that it is about to happen.

This is why im not really that getting shock anymore if lots of institutional investors would really be diving on Bitcoin space and would be accumulating as much as they could since they could really be able to see
that there's really a benefit or money on this space and this is something that they dont really like to miss out.

[passwordnow]

While it is an interesting move that we've been used to see them do, what if the time comes that they won't have to hold forever and just like us  they need to take profit from it?

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.

True.
They have got more influence now to the market and this is like the actual whales move whenever they start to dump or someone following them monitors that they've been dumping it but not likely this time, may not be the right time but soon there will be a time for it.

[hatshepsut93]

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".

[TravelMug]

Yeah, just saw it on my twitter as well, that's huge buys, but we haven't seen the price moving along the way though.

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.

They will not get their profits at this stage, they are still accumulating and just like the rest of us, the profit taking should be in bull run. So I wouldn't be scared though, it's just normal for them to make and take the profits just the average joe investors. That's how bitcoin market works, but the good thing is that we can also do that if we see a new all time high in 2024-2025.

[Husires]

We have a topic dedicated to discussing Microstrategy investments in Bitcoin, you can update the news in that topic so that the discussions are more quality instead of creating a new topic with each purchase.
https://bitcointalk.org/index.php?topic=5268108.0


Microstrategy is an interface for buying Bitcoin, as the company does not manage real investments other than Bitcoin. As noted, their average purchase of Bitcoin is $29,668 and their profits do not exceed 1% according to today prices, so with investments of 152,333 btc, this company plans to invest in the long term and every purchase in the short term will not It affects the price.

Daily Bitcoin trading volumes greater than $347 million were purchased in several batches between April 29 and June 27.

[adaseb]

What is different about this buy is that he actually bought at the bottom and not at the top as usual. However what is concerning is that it seems he was the only buyer which made us peak at $31K, it wasn’t blackrock buying bitcoins for its spot etf.

Seems they raised this money by selling shares because in the past he would buy extremely little amounts.  But this time it was a huge buy and was mostly done thru sale of common shares.

[rat03gopoh]

While it is an interesting move that we've been used to see them do, what if the time comes that they won't have to hold forever and just like us  they need to take profit from it?

Certainly it must involve several brokers with sufficient cash liquidity reserves. It's impossible to liquidate all at once, the more they stockpile, the more difficult it will be for them to determine profit scenarios.
And I don't think they'll use the same way again to make public noise, say they have to sell 10% of the holding then at least the market will react and on the next sale (if it's near) the risk won't get the same return value.

[OgNasty]

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 with I would have grabbed some when it was at the lows. The future could be quite bright for them.

[Tytanowy Janusz]

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

Exactly. I'll tell you that when I saw the headlines in the media about MicroStrategy's new purchases, the first thing that came to mind was, 'Oh no, does this mean it's over? Are we at a local peak and facing months of decline ahead?' because it's hard to deny that Saylor usually hits local tops.

[Husires]

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 with I would have grabbed some when it was at the lows. The future could be quite bright for them.

Relying on one class of assets will not lead to a healthy growth in the company's investments. Whoever invests $4.52 billion will inevitably sell, but the question is how long can they hold out without selling, and will they wait until the value of Bitcoin is very far away.
The average purchase price is $30,000, and for the price to reach $300,000, we may need more than 10 years.

I suggest that we start by asking what will happen to Bitcoin if they decide to sell or if they have a problem.

[Yaunfitda]

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 with I would have grabbed some when it was at the lows. The future could be quite bright for them.

Relying on one class of assets will not lead to a healthy growth in the company's investments. Whoever invests $4.52 billion will inevitably sell, but the question is how long can they hold out without selling, and will they wait until the value of Bitcoin is very far away.
The average purchase price is $30,000, and for the price to reach $300,000, we may need more than 10 years.

I suggest that we start by asking what will happen to Bitcoin if they decide to sell or if they have a problem.

It's obvious that they will have at some point sell some of their stash to make a profit, that's inevitable, even average joe will do that in a heart beat. But since they have deep pockets, I doubt that they will see it right away or at least in the next bull run. They are going to hold as long as they can before selling it.

Of course the market will have to be affected when news comes out that they are going to sell.

Just like when Tesla sells before, the price goes down, but just like anything else, bitcoin is so resilient that it can stomach this kind of huge sells and the market go back to normal in the next couple of days or weeks.

[passwordnow]

While it is an interesting move that we've been used to see them do, what if the time comes that they won't have to hold forever and just like us  they need to take profit from it?

Certainly it must involve several brokers with sufficient cash liquidity reserves. It's impossible to liquidate all at once, the more they stockpile, the more difficult it will be for them to determine profit scenarios.

That's a good point, it's unlikely that they can dump it all at once but there can be a point in time when they'll sell the majority of what they're holding and that's a very plausible thing to happen.

And I don't think they'll use the same way again to make public noise, say they have to sell 10% of the holding then at least the market will react and on the next sale (if it's near) the risk won't get the same return value.

I agree, was it Tesla when sold some BTC that they bought? IIRC, that was them or it was another company that has been publicized to buy a lot of Bitcoin but during the bull run, they didn't mentioned they've sold until the bear market came.

[348Judah]

Instituitional investors are the ones that have the ability to push the price in a particular direction as either to pumo it a also dump the price when their decided to cashout their profits, take micro strategy for example.

I don't agree to this, if that's true then are you saying the news on BlackRock acquiring bitcoin spot ETF has been what led to the recent surge in price that we arrived at $31,000 if all these are true then what we could all have been looking after is to set a target on this institutions and wait for them to buy or sell including other whales holding bitcoin and the entire market will looks being manipulated.

Their current bitcoin holding is enough to make a price impact if their decide to take any action, even if it doesn't have a long term effect on the price it short term impact will definitely be felt.

They are not holding upto one Fourth of the entire bitcoin in circulation, take a look at the ones with Satoshi himself, Hal Finney, El-Savador, BlackRock, microstrategy itself and many other investors regarded as whales across the world and the numbers of individuals holding bitcoin in their own capacity, could we actually say something about microstrategy that much in deciding for the market value of bitcoin if they hodl or sell.

[Strongkored]

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.

You have a valid point and they will take profits when the market is bullish so at that time we also won't be surprised if the Bitcoin price decreases, how deep it really depends on how they take profits, if they do in one transaction, of course, it will make a decline which is very deep but I doubt they will do in just one transaction because it could be that they will also be involved to make the price go up and down until they get the targeted amount of profit.

[flyingcarpet]

Instituitional investors are the ones that have the ability to push the price in a particular direction as either to pumo it a also dump the price when their decided to cashout their profits, take micro strategy for example.

Their current bitcoin holding is enough to make a price impact if their decide to take any action, even if it doesn't have a long term effect on the price it short term impact will definitely be felt.

This is the reason why the call for institutional investors have been un the rise because as it have it postuve advantages on the market so there is also few negative impact on the market also, is vis visal.

It is important for institutional investors to buy bitcoin so that bitcoin can cross a certain limit. Microstrategy continues its purchases. Maybe there are others like Microstrategy, but they buy in secret. I don't know this. Many people say that these companies can negatively affect the price of bitcoin when they sell, but the point I want to draw attention to is that if these companies try to do such a thing, be sure that there will always be another buyer. Because we are talking about Bitcoin.

[Nrcewker]

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.

This will definitely hype up the market now for sure. They bought a huge number of Bitcoins, and hence the demand also increased to hold the coins. Now they have already done this before and have know the true potential of Bitcoins, so yes now they again bought the coins and will hold it for long term. They are surely waiting for high price, and accumulating as many Bitcoins as they can in the meantime. Surely something big is coming and we can feel the vibe of it. Let’s see if they are buying more coins or not.

[Lucius]

We have a topic dedicated to discussing Microstrategy investments in Bitcoin, you can update the news in that topic so that the discussions are more quality instead of creating a new topic with each purchase.
https://bitcointalk.org/index.php?topic=5268108.0

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.

Be warned about the risky situation of Microstrategy.
Everyone is looking at Microstrategy as an "ETF proxy".
They are buying a lot of BTC, and investors have flocked to MSTR because of that.
In case of an ETF approval, Microstrategy would lose all those investors, as the ETF is such a more efficient way of holding BTC.
In case you want to bet on ETF approval: Long GBTC, short MSTR!