Topic: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’ - page 43. (Read 14591 times)

If the other assets were underperforming, then I could have agreed. But that is not the case. The Dow Jones Industrial Average has risen by around 65% during the last 6-7 months (ever since the start of the global COVID 19 pandemic). Most of the investors are selling their other assets (such as treasury bonds and bullion) to invest in equities. And this time, how can Saylor justify his move to invest in cryptocurrency?

Well im sure the stakeholders were not in the dark while investing into Microstrategy's plan.

Im sure they also realise that holding investments in FIAT based assets is actually eroding away with time.

The Microstrategy strategy is about securing wealth, the wealth has already been made they all want it to be there in 10 years time for example.

What the U.S authorities do is anyones guess and a seperate matter. They are already wrecking the $ so thats not safe anyway.

He may not be having any issue in holding for 5 years or even 30 years. But what about the other stakeholders/investors? Are they going to remain silent, in case the price dips by 80% (similar to the situation we had in 2015)?

And looking at the way the Congress is going after Libra/Diem, I am not feeling very comfortable right now. I have a feeling that the authorities may target Bitcoin very soon.

He may not be having any issue in holding for 5 years or even 30 years. But what about the other stakeholders/investors? Are they going to remain silent, in case the price dips by 80% (similar to the situation we had in 2015)? And looking at the way the Congress is going after Libra/Diem, I am not feeling very comfortable right now. I have a feeling that the authorities may target Bitcoin very soon.

He wont care if the price drops below $16k, he has stated always that he is looking long term, very minimum 5 years, he talks about 30 years.

He has a very clear understanding of Bitcoin.

That last tweet tells a lot and there are keywords to pick up on, HODL, AVERAGE.

They were willing to buy at $21,925! no fear when you can look to the long term.

He also mentioned in an interview that all his board were positive about the purchase of BTC.

Average buy price $16K. Still kind of hoping for a crash below Microstrategy's average price, if only to see Saylor try to explain himself to his investors and the SEC, and to see what it does to MSTR's price.

Do you consider Saylor to be one of the $24k longers?

His desire to accumulate much more may not be due to the price but maybe as a result of his believe in the actual tech behind Bitcoin which drives him to get more despite the perceived high price.

A drop to $14 or $15k would not really be that significant as it would barely take off up to 10% of their average purchase price.

As for Saylor, I'd like to see him sweat. He is so urgent to accumulate (even now going into debt to buy more) that it feels quite greedy. I want to see him punished for the same reason I want to see $24K longers punished.

Their average price is 16,000 USD.
Stock to flow model price is now 23,600 USD
Given that the market price has never dropped below 50% of the model price (touch wood now), I think that we can say goodbye to the 11,000 USD price.

Losing 30% on an investment is not nice, but nonetheless, many CEO's have survived that.

Do not forget that Micheal Saylor controls 70% of the voting rights, so he can basically do what he wants, without any retaliatory powers from other shareholders. He's actually one of the longers surviving CEO on the street. Now you know why.

Regarding the market Crash, why do you hope for a crash only to see Michael Saylor in a difficult position? We all would be suffering. No sorry, I prefer him to get ultra rich.

Michael Saylor has expressed their interest to hold onto the bitcoins for 100 years (which I think is a way of saying we'll be hodling for a very long time, doesn't necessarily have to be the exact figure), and I believe the shareholders also agreed to it. If they intend to hold for that long then they'll definitely experience multiple crashes in the price undoubtedly, and they definitely would be expecting this considering they did their homework before diving in.

If a crash affects their stock ratings however there could be some complaints from holders about the company getting inevitably linked with Bitcoin price movements and shifting from what they originally invested in. It remains to be seen if such an effect would happen though.

So that's the entire amount they raised from the debt issuance, right? $650M? So absent some new injection of cash, it looks like they're all out of dry powder now.

Average buy price $16K. Still kind of hoping for a crash below Microstrategy's average price, if only to see Saylor try to explain himself to his investors and the SEC, and to see what it does to MSTR's price.

If a crash did happen, I'm thinking there would be a lot of very angry shareholders of MSTR who'd be questioning what the hell management was thinking with the bitcoin purchases.

They are now 96% in the money, impressive!

So that's the entire amount they raised from the debt issuance, right? $650M? So absent some new injection of cash, it looks like they're all out of dry powder now.

Average buy price $16K. Still kind of hoping for a crash below Microstrategy's average price, if only to see Saylor try to explain himself to his investors and the SEC, and to see what it does to MSTR's price.

Micheal Saylor is at it Again!

https://twitter.com/michael_saylor/status/1341006691408752640?s=20

MicroStrategy Announces Over $1B in Total Bitcoin Purchases in 2020
December 21, 2020

PDF Version

TYSONS CORNER, Va.--(BUSINESS WIRE)--Dec. 21, 2020-- MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest independent publicly-traded business intelligence company, today announced that it had purchased an additional approximately 29,646 bitcoins for approximately $650.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $21,925 per bitcoin, inclusive of fees and expenses.

As of December 21, 2020, the Company holds an aggregate of approximately 70,470 bitcoins, which were acquired at an aggregate purchase price of approximately $1.125 billion and an average purchase price of approximately $15,964 per bitcoin, inclusive of fees and expenses.

At 12:00 midnight on December 21, 2020, the market price of bitcoin reported on Coinbase was approximately $23,910 per bitcoin.

“The Company continues to operate in accordance with its Treasury Reserve Policy and currently holds approximately 70,470 bitcoins,” said Michael J. Saylor, CEO, MicroStrategy Incorporated.  “The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value.  We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price.”

“The Company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash.  We also remain dedicated to our customers and our goal of operating a growing profitable business intelligence company,” said Phong Le, President & CFO, MicroStrategy Incorporated.  “As we work to grow revenue through HyperIntelligence®, Cloud Intelligence™ and Embedded Intelligence™ offerings, the Company expects to continue to generate positive operating income and free cash flow and will continue to evaluate the use of excess cash in accordance with our capital allocation strategy and Treasury Reserve Policy.”

It's a fun little loophole they've found. At 40%, they would be required to register as an investment company under the Securities Act, but since BTC isn't technically a security, that requirement doesn't apply.

I wonder how the SEC feels about all this.