I don't find any good reason for buying MicroStrategy stocks because they got Bitcoin on their Balance Sheet. MicroStrategy stocks are far different from just buying Bitcoin.
You should buy MicroStrategy stocks for other reasons too, not just because they hold Bitcoin too. If I will answer the question of buying MicroStrategy stock instead of Bitcoin, I'll go buying Bitcoin alone because it's where I believe on. And for me, it's risk that they are on debt just to buy more Bitcoin.
Topic: Did I do the right thing? I bought shares of MicroStrategy. - page 2. (Read 319 times)
What if MicroStrategy will tomorrow announce that they decided to dump Bitcoin and invest in some shitcoin instead? There's many examples of a change of heart in crypto industry, latest being Tesla, before that there were people like Roger Ver who were once huge Bitcoin proponents but later turned into enemies.
If you want to have something with performance tied to Bitcoin but with more profit/risk, why not just buy leveraged Bitcoin?
If you want to have something with performance tied to Bitcoin but with more profit/risk, why not just buy leveraged Bitcoin?
Unfortunately, I don't think that it's a great idea.
Essentially you are getting the worst of both worlds here. You are now subject to the illiquidity and the regulatory oversight of the fiat economy, whilst still having to cop bitcoin's volatility.
In fact, there is pretty much no way that MSTR is going to trade at NAV because of the investment vehicle structure. Investors would only be able to realise their total investment if the company for whatever reason decides to dump all their coins. Not worth.
Essentially you are getting the worst of both worlds here. You are now subject to the illiquidity and the regulatory oversight of the fiat economy, whilst still having to cop bitcoin's volatility.
In fact, there is pretty much no way that MSTR is going to trade at NAV because of the investment vehicle structure. Investors would only be able to realise their total investment if the company for whatever reason decides to dump all their coins. Not worth.
Do you think it was a good idea to buy a few shares? I guess it would be stupid if I had bought only MSTR shares and didn't have any Bitcoin, but having Bitcoin (and I keep buying), I guess it's not such a bad idea.
It's not a bad idea. Considering the growth in value, owning shares in Microsoft is a shrewd approach with potential for good ROI.I'll only advice you look beyond your personal reason for investing, which is to buy a currency heavily exposed to bitcoin. Each investment has its unique qualities and the purpose of the project, that, in my opinion, should be your motivation to acquire it and not the secondary aspect of an investment.
My advice would be to be careful about your diversification. If you're holding Bitcoin already, and then your brokerage account is full of shares of MicroStrategy & Coinbase, then you're more or less putting all of your eggs in one basket. MicroStrategy is basically a leveraged Bitcoin play at this point and for most people who don't have Bitcoin exposure, is probably a good addition to a portfolio. Just don't forget to be exposed to all other investment types as well. Bitcoin is cool and might be the best investment still by a long shot, but diversification will make your life much more care free.
But on the other hand, there are those who say that since MSTR is a company that takes on a lot of debt to buy Bitcoin, it can bring higher potential profits.
Higher (or at least different types of) risk too. MSTR can go down for any number of reasons not related to Bitcoin or even to their business performance, e.g. an accounting scandal or general market meltdown.
Plus there's what I'd call a "nocoiner's fee" - since MSTR stock can be bought by entities that are unable to buy Bitcoin directly (mutual funds etc), the price likely includes a demand-induced premium. It may or may not work in your favor in the long run. For example if a Bitcoin ETF becomes available, MSTR stock price might lose that premium.
Having said that, it's done well so far. As long as you're comfortable with it - good luck.
If you hold on to it in the long-term, I think that you did the right thing of buying some shares in Microstrategy, I mean you didn't do anything wrong buying a good stock, is it a dividend paying one though because that can affect how worth it buying those shares.
Hi mate, no, it doesn't pay dividends: -"MSTR does not currently pay a dividend"
Source: https://stocknews.com/stock/MSTR/dividends/
This is common in these types of technology companies but the return you can get from capital appreciation is much higher than dividend-paying blue-chips.
If you hold on to it in the long-term, I think that you did the right thing of buying some shares in Microstrategy, I mean you didn't do anything wrong buying a good stock, is it a dividend paying one though because that can affect how worth it buying those shares.
Some time ago I bought some shares of Microstrategy. The reason was that I had other stocks and mutual funds and I wanted to own shares of some company that was heavily exposed to Bitcoin.
After buying them, I sometimes doubt if I did the right thing. On the one hand there are those who say that to buy MSTR shares, you better buy Bitcoin directly and that's it. But on the other hand, there are those who say that since MSTR is a company that takes on a lot of debt to buy Bitcoin, it can bring higher potential profits.
So far it seems to have gone well for Saylor:
Earlier today it emerged that he has bought more Bitcoin:
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The important thing is the financing of the purchase: they purchased the Bitcoin with the ATM facility, or the possibility to issue new shares "on the fly" to buy more bitcoins: they raised capital during the third capital issuing new shares at an average price of 753 USD, raising 177.5 USD, and using 177 of those (ah... the juicy fees!) to buy the bitcoins on Coinbase:
<...>
This is the first time they are using this facility.
It looks like he's not going to stop buying every last penny (funny):
Do you think it was a good idea to buy a few shares? I guess it would be stupid if I had bought only MSTR shares and didn't have any Bitcoin, but having Bitcoin (and I keep buying), I guess it's not such a bad idea.
After buying them, I sometimes doubt if I did the right thing. On the one hand there are those who say that to buy MSTR shares, you better buy Bitcoin directly and that's it. But on the other hand, there are those who say that since MSTR is a company that takes on a lot of debt to buy Bitcoin, it can bring higher potential profits.
So far it seems to have gone well for Saylor:
Michael Saylor is gaining both sides with more and more btc accumulation and now the company holds more than 100k bitcoins as AUM but we can't ignore his other profits like this one :
He holds 40k approximately share of MicroStrategy at $728 and his moves are making some hype in the market and his debt financing has raised some issues to which he replied investing in early days of Facebook to be a pioneer in future.
He holds 40k approximately share of MicroStrategy at $728 and his moves are making some hype in the market and his debt financing has raised some issues to which he replied investing in early days of Facebook to be a pioneer in future.
Earlier today it emerged that he has bought more Bitcoin:
MicroStrategy acquired an additional 3,907 BTC at a price of $45,294 per BTC for about $177 million, thus the total volume held by the company as of August 24 reached 108,992 BTC.
<...>
<...>
<...>
The important thing is the financing of the purchase: they purchased the Bitcoin with the ATM facility, or the possibility to issue new shares "on the fly" to buy more bitcoins: they raised capital during the third capital issuing new shares at an average price of 753 USD, raising 177.5 USD, and using 177 of those (ah... the juicy fees!) to buy the bitcoins on Coinbase:
<...>
This is the first time they are using this facility.
It looks like he's not going to stop buying every last penny (funny):
Do you think it was a good idea to buy a few shares? I guess it would be stupid if I had bought only MSTR shares and didn't have any Bitcoin, but having Bitcoin (and I keep buying), I guess it's not such a bad idea.
Anyway, I would like to point out to some of you catastrophists that I have not bought MSTR shares instead of buying Bitcoin. When I did that it was because I used to buy stocks from the stock market and instead of buying P&G, for example, I decided to buy from a company that had exposure to Bitcoin.
It seems that you have not understood it well or I do not know if I have not emphasized it well: I have Bitcoin that I keep in a hardware wallet and I keep buying regularly. I added 0.01 BTC yesterday for example, as I commented on the WO thread. So most of my investment is in Bitcoin directly and I have the private keys.
It seems that you have not understood it well or I do not know if I have not emphasized it well: I have Bitcoin that I keep in a hardware wallet and I keep buying regularly. I added 0.01 BTC yesterday for example, as I commented on the WO thread. So most of my investment is in Bitcoin directly and I have the private keys.
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