Topic: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’ - page 4. (Read 17191 times)

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

You have to have full admiration for the fully committed strategy that Saylor has. He is hoovering up a big % of the supply & show no sign of stopping. I wonder if the plan is to acquire 5% of all the Bitcoin that will ever be mined? Either way, MSTR is now doing so much better than it was previously, another proof that Bitcoin = winning.

I agree with you Micro strategy isn't bad after all. It's just important that companies should carefully evaluate the circumstances and objectives around them before adopting a strategy. And not blindly adopting one without consideration of risk tolerance, financial goals, and regulatory compliance. Micro strategy has been giving more attention and new companies are willing to adopt the strategy like it is the only existing one for big companies. Other approaches are similar or different but more suitable for new companies. For example, they may accumulate Bitcoin gradually with time or prefer to allocate a fixed percentage of their treasury reserves to Bitcoin. Such would work well still. Legal devices and regulatory issues may hinder Mirco's strategy in the future what would companies who considered it as the best mean would do?

More Bitcoin purchasing power to Microstrategy Company.
Source: Crypto Pulse Nigeria and MicroStrategy Raises $700 Million Through New Convertible Bond Issue and base on the goal Michael Saylor has on Bitcoin, he is ready to purchase Bitcoin whenever there is Cash available.

Surely there will be many companies that enter bitcoin even though they will not reveal themselves, because some of them still believe that bitcoin is a very risky asset than the stock market or others, so they prefer to remain silent rather than speak explicitly like Saylor and MicroStrategy.



If seen from here in a matter of one year from the beginning of 2023 to January 1, 2024 the increase in the price of bitcoin increased by approximately 195%, and from any investment it is very rare to provide capital gains of up to that size within 1 year, it will certainly be tempted by how MicroStrategy benefits from bitcoin investment, and then more companies will enter to buy bitcoin.

We don't know that part but he's announcing it so it means that he's part of the buying process. Whether he's actually the one that does all of the purchases but I think he's the deciding when to buy it and then his people/staff are just following the orders from him. And once it's done for MSTR, he'd announce it. It's a company decision so basically, it's either the boards have agreed if it's only Michael to do all of the decision or they do closed door meetings and agreements first before any purchase.

even hundreds of companies or more have bought a lot of btc, but they are silent on social media. Of course they follow in the footsteps of saylor or MicroStaregy but they will not reveal it because they do not want their footsteps to be based on the superiority of other companies while they compete in the competition of the products they market.

I also found several large companies that have bought bitcoin in large amounts such as Tesle, Coinbase, Hut 8 Mining Corp, Riot Platforms, Inc. Galaxy Digital Holdings, Block, Inc, CleanSpark and Bitcoin Group SE.

Source : https://decrypt.co/47061/public-companies-biggest-bitcoin-portfolios

Being the CEO of MicroStrategy Company and he also knew the important of bitcoin. Saylor knows the uniqueness of bitcoin and it store of value in the future. He knows that bitcoin is better than gold and other assets. And his strong believe is that bitcoin price will increase because it has a limited supply in the market and one day global adoption will take place. And once the limited supply of the 21 millions bitcoin are mined then bitcoin will be very scarce and he will make a good profit from the investment and that is whey he is investing for a long term and hodling continuously.
And Saylor's approach of investment is the best approach ever and it is only few persons understand it and follow up.

In fact, companies would not miss such opportunities and would invest with this strategy to bring their companies to a better level. Many companies have not implemented this strategy so far, but this does not mean that they will not. Bitcoin always finds new investors. Of course, companies have similar strategies in their future plans and will announce that they invest in Bitcoin over time. Time always works in favor of Bitcoin.

When the permissions Saylor said about banks are granted, a major obstacle may have been overcome. The moves that large banks will make for Bitcoin investments will allow many investors and companies like MicroStrategy to make big profits.

Well, at the moment I'm sure more than one board is thinking about it, seeing that its strategy has led MSTR to be the most profitable company in recent years, even more than Nvidia. If the next few years continue in the same way I think that companies will join en masse.

Saylor himself explained in a video that one of the obstacles is that the big banks do not have permission to buy and hold bitcoin for the moment. Most companies have been with the same bank forever and all they want is to be able to make a call, and tell JPMorgan or BoA to buy $1B in bitcoin and hold it in custody. At the moment they can only do it with Coinbase or similar and that puts them off.

Ever since MSTR/Saylor announced MSTR's bitcoin strategy in August 2020 (the beginning of this thread and information contained in OP), Saylor has been MSTR's main spokesperson in regards to bitcoin strategies that the company has been taking.  Even though MSTR is a publicly traded company, Saylor has retained quite a large ownerhip stake and even leadership role in various aspects of the company, and especially their bitcoin related ventures. A few years ago, he did give up CEO position that would oversee the companies other business (software operation), yet he could probably take that position back if he were to want to.

Saylor is in a bit of a unique position, since there are not too many public companies that have such majority ownership in one person and also seems to profitably cashflow so much in its software business, though most folks consider that MSTR has mostly transformed itself into a bitcoin-focused (bitcoin accumulating) company.

There were some initial reports from Saylor that he had personally accumulated close to 18k BTC in his personal stash in around mid-2020 prior to the company's purchasing of BTC, and also there were inferences that he may have been using some of his sales of shares in early 2023 (or something like that) ended (or was it early 2024) resulted in his buying hundreds of millions of dollars more BTC into his personal stash, yet I think that there is no real solid admissions from Saylor regarding his personal stash, except I think that he has proclaimed that he had never sold any of his personal bitcoin, and he even had suggested from time to time that he had bought more BTC in his personal stash.


Even though Saylor has been being quite public about his bitcoin buys and even giving trainings for other companies to follow his playbook (the MSTR bitcoin buying playbook), including a training that he gave in February 2021 (and surely several other ongoing BTC outreaching that he has been doing), yet it is a bit surprising that we do not hear about more companies following Saylor's playbook, even though there do seem to be some that follow some variation of Saylor's playbook.. At the same time, it seems that there are not too many companies in a position to really employ their playbook as extensively as Saylor has done with MSTR.. including that many of us have proclaimed that Saylor is a bit extreme (and he even admits so, even though he does not self-identify as a "psycho") in regards to the amount of financial leveraging that he has been ongoingly employing to continue to purchase large stacks of bitcoin.

Saylor is the owner of the microstrategy company and if You ask who bought Bitcoin in the Microstrategy treasury then the answer is Saylor. Even saylor who always announces that he has bought btc at X. We do not know how their process is in planning something, but I admit that Mr. Saylor is a changemaker for microstrategy in Bitcoin investment.

Saylor's success in accumulating more Btc has made many other companies follow their steps to make Bitcoin a company treasury asset. So what is the conclusion for us, of course do not sell our btc ownership because many companies are queuing to buy more BTC.

Just a simple question, Is Michael Saylor the one buying all these bitcoins, or are all the bitcoin purchases that are being done for Micro Strategy as a company that Michael Saylor is part of?
 
Michael Saylor is also part of the decision-maker of the company, but I don't think all the decisions to buy when ever they are being done by him should have some support and decisions from others too, which they will all have to come to an agreement on when is the right time to use the available resources for bitcoin purchases.

To me what's crazy about this is that he's pitching investors that he's going to give them yield in bitcoin.

I said here a while ago that I bought shares of MSTR and sold them after a while with profits.

I have now bought back in because of this. Obviously it is a small part of my total investments and I am aware that it is a bitcoin derivative product with leverage.

Now, just as companies want to reward the shareholder via capital appreciation, managing the compant well and with share buybacks, and/or with dividends, they all do it based on the dollar or their local currency.

That Saylor is proposing to reward shareholders with a yield of between 4 and 8% in bitcoin over the next few years, having been 17% this year, is a total novelty and I think the key to its success. The dollar will continue to depreciate for sure and bitcoin in the long term will almost certainly appreciate as well. An 8% of a company in dollars, which is quite a good yield, is going to be a laugh compared to this.