Topic: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’ - page 15. (Read 21343 times)

^ Sauce:


https://www.microstrategy.com/careers
https://jobs.smartrecruiters.com/MicroStrategy1/744000018431507-bitcoin-advocacy-manager

Microstrategy is looking for marketing advocacy to carry Bitcoin to the next level.thw company is looking for someone who will lead a marketing campaign for bitcoin in the global arena. They are looking for someone who can spread propagate bitcoin worldwide.
Therefore the application is open for any manager or individual to apply now to spread the good news about bitcoin in the world.
Source: Crypto Pulse Nigeria

CHAD Saylor, the Cornelius Vanderbilt of the current generation!

Plus it's very easy for normies/doubters/haters to dismiss that CHADness by saying that, "He's a billionaire with a large amount of capital available". NO! Chad Saylor is risking the existence of the company he built in one of the most volatile/riskiest asset classes that's trading in the market today. He could lose EVERYTHING. That's NOT EASY.

Microstrategy Company started their Bitcoin purchases in August 2020. In the initial phase they purchased 21,454 Bitcoins. When they bought bitcoins for early stage investment, each bitcoin cost about $11,650 according to the market value at that time. At that time the total value of their purchased bitcoins was $250 million dollars. Since then they have continued to purchase bitcoins in stages.

Phase 2 bought more Bitcoins than Phase 1 just as Phase 3 bought more Bitcoins than Phase 2. They have already reached number 6 in the list of top bitcoin holders in the world due to the consistency of buying bitcoins even they buy bitcoins for investment 40 times in total. Last they managed to accumulate 252,220 bitcoins in their investment portfolio by purchasing 7420 bitcoins on September 20, 2024.

In an interview, Michael Saylor CEO of MicroStrategy Company stated that,


https://x.com/Cointelegraph/status/1842557857801355339?t=gNA9dbBqpRtoD1CeZZC_Tw&s=19

MicroStrategy's surge in market value will not stop if Bitcoin's own market value keeps surging higher. Plus even if the correlation between the stock market and cryptocurrencies weaken, and stocks actually crash but Bitcoin surges, then I believe MSTR will also surge together with Bitcoin. Why? Because smart investors know that the surging Bitcoin in MicroStrategy's balance sheet would make MSTR stocks undervalued if the stock goes down with the rest of a crashing stock market. Through MSTR, there would actually be golden opportunities to invest in a company that will have a lower stock price to book value.

Well no, what Tim says and that you quote is not accurate, starting with the first purchase, where the price of the stock was running fairly flat, i.e. borrowing was not done because the stock had risen.

It sounds like a crazy person setting up a ponzi simply because the price of the stock is going up, and that is not the case.

MSTR runs a business intelligence software that Saylor has defined more than once as a “cash cow”. What he did the first time and many others was with the profits to buy bitcoin, or if you prefer to change shit dollars for bitcoin that as the title of this thread says is superior.

Also I have to remember that their business model integrates both AI and bitcoin. Anyone who has time to watch this video:

MicroStrategy Lightning Platform

Otherwise, there are shorter ones on AI and LN enterprise solutions in the channel.

So, getting back to the subject, he started by buying bitcoin with cash but then thought that if he can take on debt with a good debt to equity ratio, mostly long term and at low interest rates to acquire what he believes is the best financial asset in the world and which he expects to continue to appreciate at least three times the S&P 500 over the next few years, then it is a good financial move.

And that is what he has continued to do, when he has cash from business profits he buys bitcoin and when he can borrow to buy bitcoin he also buys it.

In my opinion, their profit is from the increase in Mstr prices and also their second profit is from holding bitcoin whose price continues to rise.

 

• Investors invest in Microstrategy to get exposure to Bitcoin without owning it

• Microstrategy stock price goes up

• The increase in stock price allows Saylor to borrow money to buy more Bitcoin

• Less Bitcoin is now available because of the Microstrategy purchases

• So Bitcoin price goes up

• So the Microstrategy stock price goes

Source : https://x.com/Tim_Denning/status/1841440529969451318?t=EfuIJa7SD6VL4x1wG0FlnQ&s=19


I think I saylor's words, he wants to hold bitcoin for a long time even many processes he does to get money just to buy bitcoin.

Quote

Michael Saylor says,  “When I’m gone, my stock, my shares, my assets flow into a public charity whose mission is to support #Bitcoin and the adoption of BTC forever.”

Source : https://x.com/COINTIERS/status/1840787901530898851?t=qc-JUllMtCRMKwQo3rHTLw&s=19

Grayscale charges fees on their operations holding BTC and Blackrock is listed there but operating a similar fee based operation for their customers I think.  Blackrock is one of the largest trustee operations in the world if I remember right.

Those are businesses with many customers, I realize Microstrategy is a successful business in more then one initiative but how do they profit from holding BTC.   They buy BTC and the price is good currently so its a net profit for that asset but ongoing everyday do they receive fees like the other larger operators.

I just wonder on their exit game, do they ever sell any BTC even in the peaks because that would still be valid to do.  Sell the peaks and buy regularly at other times is still a net gain and net profit but they never sell any or use it or charge fees on it; hopefully Im missing some part of the story but I expect more from BTC then just to hold it.

MicroStrategy has been investing heavily in Bitcoin since 2020, and they've been investing so far, according to Michael Saylor's Bitcoin Investment and Holdings.
MicroStrategy Bitcoin Purchase History, a purchase chart of Bitcoin investment numbers.





https://treasuries.bitbo.io/microstrategy/

The flippening: $MSTR > $GBTC. Microstrategy currently company #281 if it already were in the S&P500.

Saylor's persistence in his principle to continue buying Bitcoin has brought his company to rank 6th as the largest bitcoin holder. The fairly genius mindset that Saylor has of course has changed his fate today, because he has returned to being a billionaire after the huge losses he experienced in 2000.

At the current Bitcoin holder ranking that you have shared, of course there is a fairly close opportunity for microstrategy to pass Grayscale's ownership which is ranked 5th. I think that at the end of this year, Saylor will buy Bitcoin again because he always has money from whatever means he does to be able to buy bitcoin.

One new post from Saylor showing MSTR and Bitcoin performing better for now.



image source : https://x.com/saylor/status/1840726585667657980?t=FvToONW4uOh_TTloZRzL8g&s=19

I was thinking about something else. I think the next big money is going to be made with AI. And, in fact, huge amounts of money are being invested in it. Probably the businesses that know how to combine AI with other technologies will be the most fruitful, like AI for cab driving.

In this sense, MSTR has implemented AI in its software business, so by investing in it you can kill two birds with one stone: investing in an AI company and at the same time with exposure to bitcoin with leverage.

Maybe it's not their main objective to avoid fluctuation in the market risk by buying in small bits instead of buying everything at once, their main objective is to buy bitcoins in any market situation when they already have cash. MicroStrategy bought the company's bitcoins at market highs even at low prices. The total number of bitcoins held by them regardless of the market price is 252,220BTC, regardless of the number of times they have purchased bitcoins so far. They are already going to surpass grayscale as Bitcoin continues to be bought. Right now the number of Bitcoins held by Grayscale is 254,677BTC. Maybe if Michael Saylor takes another step and buys Bitcoin they will surpass Grayscale very easily and they will solidify their role as the most influential in the Bitcoin market.

image source: https://x.com/BitcoinNewsCom/status/1838943914906050677?t=VvKdjmpWTb48Hepy_Q79iw&s=19

Well, he made that clear in a recent interview. He said he was going to continue to buy in the highs in the lows and anytime they had cash available to buy or could get it through debt. For him, he's buying blocks of Manhattan in the late 19th century, whether the price goes up or down one year. Buying blocks in that Manhattan of cyberspace called Bitcoin is always a very good investment.

That is why the investment strategy applied by this method demonstrates the actual significance of stability in the financial management. Through this it shows great confidence in them that this digital asset will be valuable in the future and they continue to invest in it even if the price goes high. This approach is based on the fact that long-term cash investment is always characterized by certain resistance and self-discipline.

Therefore, the method applied by MicroStrategy known as dollar cost averaging also gives clues to other investors. This way they can avoid fluctuation in the market risk when buying in small bits rather than having to buy everything at once. And this is a rather wise decision, one that can become a crucial lesson for those interested in a less-risky way to get into the coverage of cryptocurrencies.

Microstrategy has continued their Bitcoin purchases at any market moment for the past four years. Whether the market price is high or low is not a headache for them but we have seen that if they have cash they do not hesitate to buy Bitcoin. They have already spent four years of their bitcoin investment journey during which they have purchased bitcoins 40 times. MicroStrategy Company is one of the best examples of dollar cost averaging method of investingmicroStrategy Company already owns 252,220 BTC since August 2020 by purchasing Bitcoin through DCA. (The average entry of each of their bitcoin purchases is $39,266.)


image source: https://x.com/Vivek4real_/status/1838308893987938606?t=J4xD6mC9pI7gAZJi37trNQ&s=19

MicroStrategy is back to buying BTC today, Now MicroStrategy company already holds 252,220 BTC with an average entry of $39266 per Bitcoin.


Source : https://x.com/saylor/status/1837116692209574119?t=TEKXFAczWcLZvO05L7Eapw&s=19

MicroStrategy Completes $1.01 Billion Upsized Offering of Convertible Notes at 0.625% Coupon and 40% Conversion Premium. $MSTR
Source : https://x.com/saylor/status/1837100617505907021?t=0WYf0VMb3p2r8mi4oCMwIw&s=19

I think saylor and microStrategy got a fresh cash injection to buy more BTC, they already used $458 million dollars to buy Bitcoin which was done today.

Yes, it was his fault for being so greedy to buy a lot of bitcoin, even today the company MicroStratety has announced the company will open the price of a convertible senior bond offering worth $875 million.

I think they have acted quite right to provide a lot of benefits for shareholders by providing interest of 0.625% paid twice a year.

But did this sale go successfully where they were able to sell shares in the convertible senior bond offering.

Some experts say that microstrategy wants to find additional capital to buy bitcoin, and some say they want to pay off loans.

Source : https://www.microstrategy.com/press/microstrategy-announces-pricing-of-offering-of-convertible-senior-notes_09-18-2024

I found Saylor's recent interview with Saifedean Ammous to be somewhat interesting, since so many times no one gets too many words in edgewise with Saylor, since Saylor tends to be able to back up his arguments quite well, and at various points during the interview, Saifedean was suggesting the time-value of money was going to cause interest rates to continue to come down due to technological innovations, yet at the same time, Saylor was arguing that Saifedean was living in some lala land in regards to how detached from reality to expect that loans would be given out without interest or that younger people would be able to somehow magically acquire equity. 

I don't claim to understand all of the arguments that were made, yet I did understand that Saylor was suggesting that one of his recognized mistakes in regards to getting loans to buy more bitcoin was to be using bitcoin as the collateral for the loan, given the extent of bitcoin's volatility, which causes potential problems in regards to making the bitcoin vulnerable, so then his thoughts are that collateral, if needed, is likely going to have to come from somewhere other than from bitcoin.. which makes sense... and he even conceded that he/MSTR have been in way better positions to negotiate way better loan terms than would be possible for a lot of regular folks... which we also know that a lot of regular folks need to build a certain amount of either equity or personal credibility (debt worthiness) to even be able to achieve somewhat reasonable rather than onerous loan terms.

Yes MicroStrategy company are ready to buy bitcoin whenever they have cash available. We have seen in the last few days ago that they bought Bitcoin when the Bitcoin market was dumping. MicroStrategy increased its raise to $875 million to buy more bitcoins and redeem outstanding notes. source: Saylor