MicroStrategy knows or not?

[bias]

Hello. I read today in this article that Microstrategy and its chairman, Michael Saylor, hold 386,700 BTC, thus the ~1.84% of the total BTC supply. Many of these were purchased in 2024 and at relatively high prices.



And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

[_act_]

Do you not know that bitcoin would be one of the world's money? It is even one now. You can send bitcoin to someone in one country to another and bypass those government regulatory rules which they use to cage their citizens. You can own bitcoin and the price will keep increase over time. No other reasons Microstrategy buys more bitcoin than knowing that the world will adopt it and the price will continue to increase.

[philipma1957]

Hello. I read today in this article that Microstrategy and its chairman, Michael Saylor, hold 386,700 BTC, thus the ~1.84% of the total BTC supply. Many of these were purchased in 2024 and at relatively high prices.



And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

They are hoping that we go well over 100k.

I suspect that he believes USA will make some very good laws for BTC next year.

simple math 400,000 x 50,000 = 20,000,000,000 close to his cost.

400,000 x 100,000 = 40 billion
400,000 x 150,000 = 60 billion
.
.
.

400,000 x 1,000,000 = 400,000 billion not impossible anymore.

[Ever-young]

Saylor sees something in bitcoin that few do not see or saw but didn’t understand; he takes the volatility feature of bitcoin to be an interesting thing, as many see it as a disadvantage; he sees it as an opportunity. The supply of bitcoin is too small for the entire world population.

Profit is one of the big reasons why any company will start investing in Bitcoin, and they see Bitcoin as being underrated and undervalued with its current price, so I consider it as them taking the opportunity to tap from the not much tapped honeypot.

[mindrust]

Tesla and MicroStrategy are the early institutional adopters. Exchanges like Coinbase, Binance, Bitfinex are also early adopters but these are exchanges. MS on the other hand wasn't a crypto company originally but they show more interest in btc than any other company so far and that's a good thing. Imagine where would the price go if 5 more companies like MS had interest in bitcoin... $1 million/btc would be a conservative  price estimate and you know what, I think we are headed that direction.

In a couple months Trump will take command and soon other companies will join the party. Then... m^oon

[Free Market Capitalist]

No, Saylor doesn't know anything we all don't know, he knows what we all know, and he never tires of repeating it. What happens is that he puts his money where his mouth is and has devised a treasury system by which he is making a move similar to that of central banks: we can say metaphorically that he is printing money to buy bitcoin.

If you want to know more, we usually debate about it in the thread:

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

[aoluain]

Hello. I read today in this article that Microstrategy and its chairman, Michael Saylor, hold 386,700 BTC, thus the ~1.84% of the total BTC supply. Many of these were purchased in 2024 and at relatively high prices.

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

Do they know something we don't and are buying aggressively?
- No, they have put revolutionary economic and finance mechanisms in place to be able to
buy as much as possible before its too late because of the increase in demand, decrease
in supply and fixed amount.

To what point will they continue this strategy and what do they expect to gain?
- probably never stop buying, the gain could be to create a Trillion-Dollar Bitcoin Bank

besides the obvious?
- I'm taking it that you believe that at some point in the future they will press the sell button
and clear their wallets before anyone else. If they do it will be for the betterment of the rest
of us because Bitcoins performance, security, utility and applications will remain.
As he has stated "Buy the property and hold it for a long time" the same as when the US
bought Alaska from the Russians for $7,200,000 - it was a steal!

[avikz]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

Not impossible! Billionaires are privileged to have access to the knowledge is that are kept out of our reach. So I won't be surprised if we suddenly found out that Michael saylor knows some secrets. At least it is not impossible!

However I personally feel that Microstrategy is just bullish on Bitcoin. A lot of companies can hold assets in various sectors. While majority of them do not go out of the conventional assets, some tend to do experiments and diversify into unconventional assets. I think that's what Microstrategy has done.

[Nwada001]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

Not impossible! Billionaires are privileged to have access to the knowledge is that are kept out of our reach. So I won't be surprised if we suddenly found out that Michael saylor knows some secrets. At least it is not impossible!

Not impossible I agree too, but I don't think there is still any information that is hidden from the ordinary about bitcoin that is out there that only the rich will have access to, aside from getting some financial advice from top analysts that will predict what they could make from it if they invest a certain amount in it over a given period of time. Such kind of information is open to all, but not everyone has the mind to take the risk of investing heavily in it even with the money being available.

[Findingnemo]

Obviously they realised Bitcoin is the future and the nature of scarce is what make the giant to accumulate as much as they can while it cheaper. People may ask 100K is not really cheap but what will happen in the next few years like a decade later if it hits 1 million then obviously 100K is nothing of that value.

One side they are propogating Bitcoin is ponzi and the bubble will burst but on the other hand it's being accumulated by rich so wakeup can for the remaining 90% to get as soon as they can before it becomes really scarce.

[Zlantann]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

I don't think Michael Saylor has any hidden information that is motivating him to keep on buying Bitcoin regardless of the price. He just has the conviction that Bitcoin is the best investment for him. He believe that the price will keep appreciating more than the cost he is paying to purchase .Some people are fascinated about gold or real estate and they keep acquiring it no matter how high the price goes.

Based on my observation I don't think Microstrategy has any current plan to stop acquiring more Bitcoin. Maybe they will stop when Saylor changes his ideology about Bitcoin or if he dies.

Since most of Microstrategy purchase is in public domain, I think their main purpose for investing is profit. Bitcoin is also becoming a symbol of economic power since we are gradually entering a phase were the it will be used as a reserve currency.

[sunsilk]

And I wonder. Do they know something we don't and are buying aggressively?

Basically what Saylor knows is also we what know. We believe in Bitcoin, right? he's simply believing in it as well in the long run. While many of us here probably have bought and held bitcoin for a long period of time, he's on disadvantage of purchasing it on relatively high prices.

To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

We will never know.

But that is for sure will happen in the future, Microstrategy will surely sell at the right time. He might say in the news that they'll hold forever, there will be a point of time that they'll take nice profits but might buyback and make quick money.

[Free Market Capitalist]

Can anyone explain to me like if I was a 12-year-old what Saylor means here? Too tired now but if noone can explain it to me, I will look into it.

[Reatim]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

What could they possibly know that we don’t? No one can predict the market. No one controls it. No one has authority over it that anyone or any company can get through. Whatever microstrategy saw is also something available to us. It’s just how they perceived and interpreted it would be the difference.

Clearly they knew better to invest. No tricks there or anything. They just saw potential and they were right.

[AmoreJaz]

And I wonder. Do they know something we don't and are buying aggressively?

Basically what Saylor knows is also we what know. We believe in Bitcoin, right? he's simply believing in it as well in the long run. While many of us here probably have bought and held bitcoin for a long period of time, he's on disadvantage of purchasing it on relatively high prices.

To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

We will never know.

But that is for sure will happen in the future, Microstrategy will surely sell at the right time. He might say in the news that they'll hold forever, there will be a point of time that they'll take nice profits but might buyback and make quick money.

Everyone of us relies on speculation in this market, whether you are a known personality or not. No one knows the exact future of this market so we will only act on what we know so far. If you have strong belief, for sure, you will invest more.

Do you not know that bitcoin would be one of the world's money? It is even one now. You can send bitcoin to someone in one country to another and bypass those government regulatory rules which they use to cage their citizens. You can own bitcoin and the price will keep increase over time. No other reasons Microstrategy buys more bitcoin than knowing that the world will adopt it and the price will continue to increase.

The benefits of this market is indeed great if someone can see such aspect Just look at the fees involved when you need to send crypto to another part of the world. Would be different if you are using WU or other remittance center as the fees are quite significant. However, not all can see such benefit. It would take time for sure as people are starting to get curious in this digital currency.

[Darker45]

Overall, it seems to me the only difference between Saylor and many of us is that he walks the talk. He puts his money where his mouth is. He risks in what he believes in. Whereas, many of us are bullish only in words but actually shiver when buying a significant amount of Bitcoin.

Talk is cheap. That's for many of us. We're cheering for Bitcoin, arguing for Bitcoin, promoting Bitcoin, but only risks a little money for Bitcoin. What makes the majority different from a Michael Saylor is that the former prefers to play safe all the time while Michael is taking the risk.

At the same time, we shouldn't discount the genius of Saylor in setting up different strategies to support its Bitcoin buying spree. He issues new shares to acquire more capital to buy Bitcoin. He issues convertible notes and bonds to raise huge amounts of money to buy Bitcoin. He uses both actual money and debt to finance his Bitcoin purchases.

In this respect, he knows a whole lot more than most of us. In the end, however, all this is founded upon his belief in Bitcoin, something that all of us share. Or perhaps, indeed Saylor knows more about Bitcoin than many of us. He seems to be genuinely passionate about the technology, something many of us probably don't share. We only care about the price.

[yhiaali3]

No, Michael Saylor and MicroStrategy don't know anything we don't know, I think this thread might answer your question as to why MicroStrategy keeps buying Bitcoin despite all this bullishness:
Do you understand why MicroStrategy's market cap is larger than BTC holdings?

In short, they are using borrowed investor money as leverage to try to keep their stock price high so they don't lose money, or so I understand.

[Helena Yu]

They started to buy Bitcoin since August 2020 and they didn't sell when Bitcoin reach ATH in 2021, so I think they will keep holding Bitcoin until they're really big. MicroStrategy is the fastest growing company, Bitcoin make them rise from 5~ ish Billion market cap to 80+ Billion market cap. https://companiesmarketcap.com/microstrategy/marketcap/

Can anyone explain to me like if I was a 12-year-old what Saylor means here? Too tired now but if noone can explain it to me, I will look into it.

Credit default swap is like an insurance for investors. Let's say the investors invest in X company for $1K with the return $50 per month for 3 years, in order to protect the risk of X company can't pay the return, the investors seek Y company that willing to cover the risk if X company can't pay the return/default. Y company get a fee from the investors, but they need to bear the money from X company.

[Accardo]

No, Michael Saylor and MicroStrategy don't know anything we don't know, I think this thread might answer your question as to why MicroStrategy keeps buying Bitcoin despite all this bullishness:
Do you understand why MicroStrategy's market cap is larger than BTC holdings?

In short, they are using borrowed investor money as leverage to try to keep their stock price high so they don't lose money, or so I understand.

They're running some kind of IOU form of purchase, with the sell of notes to investors. So, the company doesn't need to sell more shares to get Bitcoin. Did you notice that all their holdings barely make changes in the market, or is there something I'm missing out?

[d5000]

We have talked about that in the Spanish subforum too. The general mechanism seems to be that MicroStrategy can sell bonds for a very low interest rate. Then they buy Bitcoin for it. The "gamble" is basically that the appreciation of the Bitcoins they hold is superior to the interest rates, and they can use it as collateral for other assets. As the rate seems to be lower than 2% per year (if I interpret this correctly, then they're even offering 0% bonds!), the gamble works.

However I have also noticed that it seems that Saylor doesn't buy that much at the most convenient rates, e.g. in late 2022/early 2023 - he only bought slightly over 10000 Bitcoins in the year between early June 2022 and June 2023, instead having bought almost 200000, mostly for more than 50k, in 2024. My theory is that it is easier to attract investor money when the bull is already roaring, and if the gamble pays out -- i.e. if the bull markets are only a little bit similar to the earlier bull markets Bitcoin has experiencied -- then the relatively high buy price won't matter that much. So basically Saylor is going for at least $120k. Although he would be even fine if BTC stays below 100k, but substantially above 60k for several years more, because his cost per BTC according to BitcoinTreasuries is 56000 $/BTC approximately.

Can anyone explain to me like if I was a 12-year-old what Saylor means here?

Helena Yu already explained Credit Default Swaps. Trying to decipher what he means: if "20th century assets" fail, MSTR is an insurance (like a CDS) for them for a value up to 100 trillion USD.