Topic: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’ - page 14. (Read 22685 times)

Not just Michael Saylor when it comes to investing, you can invest no matter what your situation is. You may be thinking that Michael Saylor is the CEO of a company for which he is right in his position. I think we are all right in our own position if we have our own ability to buy bitcoins.

Is there anyone who doubts right now that MSTR is going to reach 0.5M BTC in the next 1 to 2 years. Reaching 1 million bitcoins will be more difficult with the foreseeable price increase, but it is certainly gaining a privileged position.

Is anyone worried about the small dips in the bitcoin price? Do you despair because the price does not reach $100K? Saylor is not, he is rather rubbing his hands because he can buy it so cheaply.

Currently, MicroStrategy has become the 229th most valuable company in the world in terms of market cap. The picture you mentioned says that MicroStrategy is ranked 281nd by market cap and shows their total market cap at $33.36 billion. In just one month, the market cap of this company has increased more than twice as compared to the last month, that is, their current market cap is $81.11 billion dollars. As a result, they have risen many steps in terms of market cap of valuable companies. Recently, Michael Saylor bought Bitcoin twice in November. Bought BTC27200 BTC on November 11th and BTC51,780 BTC on November 18th. In November alone, MicroStrategy purchased a total of BTC78,980 bitcoins, As a result, their market cap has also increased much more than before.

Yes, good points here in regards to whether or not MSTR could ever be sued. But despite being public about everything, this has probably not much to do with any future liability concerns. It is a clear marketing strategy and it works. Here they describe how these convertible senior notes work and at what terms.

MicroStrategy Announces Pricing of Offering of Convertible Senior Notes

They redeem any convertibles at either 100% the initial purchase price + any accrued interest or the holder can convert them into class A common stock. This is a highly attractive offer as Michael Saylor has said that the mid-term goal is to become the biggest and most important bitcoin bank in the world. With the pace at which they are now acquiring bitcoin, it is hard to imagine that any other institution or company will outstrip them on the way to their goal. If I had convertible notes of a company that credibly aims at becoming the biggest financial player in the bitcoin cosmos, then I would truly be happy to hold these notes and probably buy more.

Saylor has kicked off a serious business case here as to how raise more funds in order to buy more bitcoin, or as was said before here


But his plan only works because he executes like nobody else. He is overdelivering and he probably knew beforehand that he would do it and that he would go beyond what was announced in his 3-year plan. The last purchase of 51,780 BTC is just insane. If you are the biggest player in the world already and you then add 18.5% to your holdings at a price that is around the ATH, I think there can't be any more signalling as to how serious you are about everything you've told the public so far. It's even crazier than that, if Saylor says something today, people will start adding expectations to whatever he says and he is approaching a position of real, tangible market power.

I wonder if the U.S. government could strive for some cooperation/influence in the MSTR company, similar to what they are doing with Starlink and SpaceX. Since the idea of a bitcoin reserve was brought up in the recent past, they might as well support the strongest player in the world as MSTR is U.S. based anyway. Does that make any sense or what do you guys think? Behind the scenes a lot of things could be going on and I sometimes feel the government doesn't want to take the active role in some things, similar to their cooperation with Starlink. They can always say "we have nothing to do with it, it is the entrpreneur Elon Musk making the decisions".

Yeah, and anyone who allows their money to be dormant is visionless


Wisest decision anyone in the position of Michael Saylor could do as well; buying and hodling more btc.
Invariably, use what you have and get what you want.

Money never Sleeps



Micheal Saylor is getting free money to buy the hardest money.
Legend.

I don't know why the news of MicroStrategy acquiring more bitcoins doesn't move me again, maybe because we know the commotion that will happen when they decide to sell. That notwithstanding, MicroStrategy has made great impact in the price of bitcoin since they started acquiring bitcoins and it's good to see that they are even buying more bitcoins without thinking of selling, since the price of bitcoin has been experiencing immense growth after the United States election. I think we should enjoy the impact of MicroStrategy in the market, any day they sell, and the price of bitcoin peradventure falls, it will also grant an opportunity for investors to buy bitcoins at cheaper prices.

Frequently public companies are at a disadvantage by having to publicly disclose what they are doing, and surely we have discussed before how Saylor and MSTR had gone overboard in terms of the level of their disclosures in regards to what they were going to do, so it becomes way more difficult to sue them for failure to disclose or misleading investors in regards to their conduct.

Some of those public naysayers are coming around to bitcoin, and they don't really have a choice when the market is going opposite to their claims, and they were not able to talk people away from it.. except those people who then may become mad at themselves for listening to folks like Bill Gates and some of the otherwise reputable bitcoin naysayers.

Yes, I think that was a conservative estimate they made, but I think it will fall short in the first year. I think with the amount of institutional capital coming into the bitcoin market they are going to follow the strategy of buying as much as they can as soon as they can and that the 21+21 (billion dollars) plan might be completed in 2025 or maybe 2025 and part of 2026.


Fuck, you're even more bullish than me.

At this pace Microstrategy will have tapped that 21 billion ATM within 6 months instead of three years. You wonder as well where all these 51,780 coins are coming from without having a major impact on the price. People that are owning coins in such quantities should know you don't sell your bitcoin at this stage of the cycle (or ever).

As of this new tweet MicroStrategy has acquired $4.6 billion at -$88.627/BTC perhaps this also includes what you mentioned.
As we know that Saylor will do that, the green dot will not stop if the company still needs it.
Maybe when the price is $100K he will continue to acquire it.

This is the only institution that buys bitcoin publicly, but other institutions don't do that, so we know that the development of MicroStrategy's bitcoin purchases that we can see every day.

MicroStrategy has acquired 51,780 BTC for ~$4.6 billion at ~$88,627 per #bitcoin and has achieved BTC Yield of 20.4% QTD and 41.8% YTD. As of 11/17/2024, we hodl 331,200 $BTC acquired for ~$16.5 billion at ~$49,874 per bitcoin. $MSTR



In just over a week, the MicroStrategy company bought Bitcoin again. Michael Saylor's company that will buy bitcoins made this comment on Twitter yesterday, Michelle Saylor saying that his company needs more green dots. MicroStrategy has bought the most bitcoins today since 2020 so far. Today this company bought 51,780 bitcoins, according to today's market i.e. according to the current price of bitcoins, the total value of bitcoins they bought today is 4.6 billion dollars. Already this company has accumulated 331,200 bitcoins in their investment portfolio.

Yes that is most likely the case. It could probably be verified with some effort being put into some research, but I just take the chart as it is and am quite sure it is like you said.

The impressive aspect about MSTR is that they made it public and never made a step back. No matter where the price went, they kept doing what they announced before and they have probably overdelivered on public expectations. The last purchase high in the 70kish was a major signal to the market. They are literally not going anywhere and they have worked years on their narrative not being considered empty promises. Now they can become even more creative in raising funds as people trust them. Whether that be via convertibles or other instruments, but by announcing their 3-year plan laying out further big purchases, I think nobody doubts they are in it to win it.

They made a great call and did what I believe many here on this forum would have done if they had the same opportunity, financial capabilities and whatever else is needed to pull off what MSTR/Saylor have done. He clearly demonstrates that a lot of major companies who whould have known better missed a huge opportunity.

With that in mind, let me quote someone we all know is a tech genius:



Too bad he didn't short it. He has lost $1.5 billion in shorting Tesla and I would have loved to see him getting wrecked with shorting BTC. Too bad there was "no easy way to do it"!

Months ago, before Bitcoin Spot ETF and the bull run, Michael Saylor said in his interviews, that he considered "Bitcoin is the end game", so surely he will plan to buy more bitcoin for himself and MicroStrategy company.

They are one of earliest institutional investors in Bitcoin, and they are witnessing Bitcoin adoption growth and Bitcoin Spot ETF approvals. All these make their belief in Bitcoin bigger, and their hands are more diamonds to hold bitcoin, and lastly they will plan to buy more bitcoin.

Green dots, red dots, whatever if they buy and hold bitcoin, they will have profit. Loss is temporary and if you can hold, loss will turn to profit.
https://www.bitcoinmagazinepro.com/charts/bitcoin-profitable-days/

That's what I thought when I saw the tweet, but...seems premature to me.
42 billion in two years mean 21 buys for 2 billion in 24 months.
Maybe he wants to frontrun the buying to gain from the low quotation?
 

Michael Saylor has commented on his Twitter that his company needs more Green Dots, his comments clearly imply that his company is ready to purchase more Bitcoins and may do so very quickly. Last November 10th we saw another similar tweet from Michael Saylor, where he also said that his company needs more green dots. Two days after he made that comment, His company is MicroStrategy bought BTC27,200 bitcoins worth $2.03 billion dollars.


Michael Saylor's company needs more green dots and they buy more bitcoins.
https://x.com/saylor/status/1858133416102723888?t=HmPgClm0jcYusPpBpQzfmA&s=19
https://x.com/saylor/status/1855589307550986263?t=AzRVvSs6Ebc799R2WyMSaA&s=19

Cash is only a part of equity, which consists of total assets. There you will have to add the bitcoin they have, and if they have any paid real estate, such as headquarters, things like that.


No, they do not borrow from the bank, they borrow from the market. They make the offer in the stock market and part of those who buy it may be kind of financial institutions such as investment funds, but individual investors like you and me can also buy this convertible debt. Although I think that for the common of mortals it is better not to get complicated and buy only shares and/or funds.

Here the question is that I don't think anyone who buys that debt is not bullish on bitcoin. By buying convertible debt what you are doing is paying a premium on the bitcoin they hold (which is never redeemable) and a premium on the shares. But that debt entitles you to be converted into shares when they reach a price.

For example, the shares today are at $340, and let's say that the convertible debt is sold at $400. That debt entitles you to be converted into shares when the price of the shares reaches $500. Is there anyone who doubts that this price will soon be reached? If the shares were to take time to reach that price, the company would pay that ridiculous interest, but that is not what the investor is looking at, what he is looking at is the possibility of making 20% in a short period of time.

Michael Saylor hints at MicroStrategy's upcoming Bitcoin purchase

Michael Saylor has indicated more Bitcoin investments are imminent.
Saylor wants to make MicroStrategy the leading Bitcoin bank.

Michael Saylor, co-founder of MicroStrategy, has hinted at a potential new Bitcoin acquisition following the company’s recent purchase of 27,200 Bitcoin between October 31 and November 10.

Saylor stated in a recent post on X that MicroStrategy’s portfolio tracker needs more “green dots.”
Source Link: https://cryptobriefing.com/michael-saylor-bitcoin-purchases/
These dots refer to visual markers that indicate each instance of Bitcoin purchased by MicroStrategy, sparking speculation that the company may soon reveal additional Bitcoin investments.

MicroStrategy’s 21/21 plan and Bitcoin bank vision
MicroStrategy targets raising $42 billion over the next three years to fund its Bitcoin purchases.

The strategy, outlined in its third-quarter earnings report, is aimed at $21 billion raised through issuing new shares and another $21 billion through convertible debt or other fixed-income instruments.

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Microstrategy companies are doing their best to invest in bitcoins, they are ready to buy more bitcoins. And they will establish bitcoin banks where only bitcoins will be held and stored for a long time. Because they are more aware of the future of Bitcoin, Michael Sylor practices every process of how to hold Bitcoin to maximize future profits. Which is why they are currently the largest holdings of Bitcoins alone, and they are constantly accumulating Bitcoins thus encouraging them to make more money in the future.
I think MicroStrategy will be considered the only successful Bitcoin holding company, and this company is known around the world.

I recall that about a year ago, Saylor gave a presentation with graduate school business students (it was Harvard, Yale, Stanford or some BIG name school) and the professor did some kind of a survey of the business students in regards if any of them would have taken Saylor's approach to bitcoin to put cash into bitcoin and also to leverage up on such company assets, and something like 80% voted against such strategy based on their learnings.. and Saylor thought that it was ridiculous that Business students were not able to recognize and appreciate the genius nature of Saylor/MSTR's approach to putting bitcoin in company treasuries.


A day or two ago I watched at 1.75x Saylor's 1 hour presentation at Cantor Fitzgerald, and I cannot remember exactly where he said that he was getting his credit (MSTR's credit) for something like 0.78% annualized rather than higher traditional rates of 6% or whatever. .but he said something like their ability to get reduced rates. 

I recall in the beginning Saylor/MSTR was paying like 8% annualized and then with each offering it got lower and lower and lower, and part of it has to do with demand, but also it has to do with other ways that the investors were profiting way greater by buying into MSTR financial products, so Saylor/MSTR did not need to offer higher rates.

Yeah, it might be unfair, but it is what the market is willing to bear, and normal people cannot get those kinds of rates, and part of the reason that Saylor/MSTR is able to get such great rates is that it has built a fairly credible track record in regards to its expertise in this area.  Sure, there are risks, and maybe the strategy keeps working until it doesn't, yet it seems while it is working, there is no reason to not jump on the MSTR/Saylor train - even though I have never bought any MSTR so far.. and I am not planning on doing it either... because I feel good enough having my own bitcoin... rather than relying on 3rd or 4th party managerial and custodial risks.

Sad to say, I did take a course in corporate finance when I was in college and for the life of me I can't recall what the significance of the debt:equity metric is.  I did take a look at MSTR's (abbreviated) balance sheet on Yahoo Finance, and it looks like they've got $46.34M in cash and $4.27B in debt.  Normally I'd say that isn't great, but obviously they put that borrowed money to what turned out to be a good use, i.e., their bitcoin purchases. 

I was going to post a screenshot as a reference, but talkimg isn't responding at the moment.



I probably missed a lot in this thread, but I have to ask how they were able to borrow money at rates not only lower than inflation but lower than the Fed funds rate.  They were actually able to do that to finance their bitcoin purchases?  If that's true, MSTR must have some very friendly bankers.