Topic: MicroStrategy knows or not? - page 3. (Read 691 times)

They have leverage in a more advantageous position and they will certainly take advantage of that. I don't really care about that because if bitcoin can be controlled in such a way then there should be many other people who can do what they do. They are speculating just like we are but their speculation is a little more accurate and I often hear the saying that if you have a lot of money then people will listen to whatever advice you give them even if it is sometimes not the right advice. Not only those who are targeting bitcoin at 150K per BTC or even 200K per BTC but there are many who see it realistically based on its recent price and we might as well be optimistic about it.  

Their buying Bitcoin will have no impact in the short term but in the long term it will have a huge impact.


They have been buying bitcoin consistently for years without paying attention to the price and recently bought another 55kBTC at $97.8k. It sounds like they bought at a pretty high price and if there is any significant correction they will suffer heavy losses. But that's not true, when they buy another $55k at $97k, that means they're holding 386k BTC at an average cost of just $57k for each bitcoin they buy. This means that even if the price of bitcoin drops significantly, they are unlikely to suffer a loss or incur heavy losses.



https://x.com/saylor/status/1861033309934862601

Have your keys and be your own bank... Some understand it easily and quickly, some need more time. In any case, we don't need middlemen who take too many fees for everything. To not mention that third-party services are in control of our funds, not your keys, not your coins.

Saylor just had the ability to invest more than others and he used that to increase his wealth. He seems to be doing very well so far... Of course, risk is always present, so we can say he had the balls to do what he did.

MicroStrategy and Saylor are moving with a risk business mindset. Their strategy isn't something unknown to us; it's something we know, but they're the ones actively putting it into practice. They are big adopters of Bitcoin, so now that they're heavily investing in it, the news has spread, just like we're discussing it in this forum, and the hype for Bitcoin is everywhere.

This will encourage more solo investors and companies to invest in it, increasing the demand for Bitcoin and, consequently driving the price in the market. This in turn, adds to the profit of Bitcoin, which means large holders of Bitcoin will get a lot of profit in the coming six months to a year. That means a lot for MicroStrategy and Saylor. So, this strategy they're using supports the Bitcoin market and helps it keep increasing, while equally benefiting them.
And I believe no one will invest in something they don't think has potential or won't double their investment.

We can only speculate about what Saylor/Microstrategy knows that we don't know. Personally I don't believe that Saylor knew that Trump will suddenly become pro-crypto and this will pump the BTC price to 98K USD. Saylor just placed a bet and the bet turned out to be winning.
Microstrategy will continue buying BTC as long as they have enough money to buy BTC. Maybe they will be aiming at a future Bitcoin price of 150K per BTC or even 200K per BTC. I don't know what they could possibly gain besides massive profits. Maybe they will start selling BTC to the future US national Bitcoin reserve.

You can use talkimg.com instead of imgbb.com, it's managed by our user to ensure that we won't lose images in the future.

Let's talk about MicroStrategy. I don't know what you and other users know but it's clear that MicroStrategy knows more than average Joe. MicroStrategy knows that it's better for the business to save its reserves in a currency that deflates instead of a currency that inflates. They also know that Bitcoin is the only one, truly decentralized cryptocurrency (I don't talk about Monero because there is no air for it to breath because of it's own highest anonymity standards).

Bitcoin got ETF approvals, Trump became the US president, the crypto community reacted very positively for his win, so, you know, a smart mind will buy and hold Bitcoin and the minds behind MicroStrategy are very smart.

My theory is simpler and coincides with what he says. He believes that in 21 years bitcoin will be worth at least $13M. With that perspective buying a bit more expensive or cheaper now doesn't matter, what you have to buy is as much as you can when you get the money for it.


I had an idea of what they are, the question is how it is applied here. If he refered to the bonds he issues I would understand because they have downside protection but stocks? Surely he is referring to what he has repeated several times, that 20th century assets devalue (even gold or houses, due to taxes and increased supply) while bitcoin does not, but I don't quite see why he puts his common stocks as a hedge and not bitcoin itself. He will surely explain it in more detail in a future interview.

that they are aware of the risk involved in how much they have invested and how much more they are willing to invest and are still not bothered shows that they know a thing about bitcoin and are not ready to pull out anytime soon. if the market goes down bellow certain level, they will be at a tight corner where the options available for them will be to continue buying even at the DIP, wait for the market to recover or do what we know as the last option of every investor.

MicroStrategy's believe in  bitcoin is very strong and it continues to create sentiment for investors and holders including other big whales that might be interested in starting off their investment at this time going upwards. if other whales comes in and trumps also steps it, the effect will still be favorable for him so things looks bullish for MicroStrategy for the now and the latter.

Regardless of knowing or not will it be important? I think not because in this case we have the same interest in bitcoin so we don't need to bother anything else in this case because in the end what distinguishes us from Saylor is that he really believes in bitcoin and tries to be the maximum because of the power of money he has but we are people who only set aside a small portion of the income we have for one month for bitcoin that we want to invest in the hope that it can be useful for our future or our own version of financial freedom.

He has a lot of connections and power so in the end even though he knows more than what we know it will only make us guess and make our own conspiracies, so instead of doing things like that it will be more worth it in the end we just have to focus on what we do and the goals we want to achieve.

Yes, MicroStrategy's holdings no longer have a significant impact on the price, but they do have a positive sentimental effect for investors, which I think is what they want by buying more Bitcoin at high prices.

They are actually playing a risky game, but it is still working as long as the price of Bitcoin is high and within certain limits, but if what they and we do not wish for happens and the price of Bitcoin drops significantly, then MicroStrategy will be in a very difficult position.

I think he constantly needs to be in the public eye so that the company's shares grow.

We have talked about that in the Spanish subforum too. The general mechanism seems to be that MicroStrategy can sell bonds for a very low interest rate. Then they buy Bitcoin for it. The "gamble" is basically that the appreciation of the Bitcoins they hold is superior to the interest rates, and they can use it as collateral for other assets. As the rate seems to be lower than 2% per year (if I interpret this correctly, then they're even offering 0% bonds!), the gamble works.

However I have also noticed that it seems that Saylor doesn't buy that much at the most convenient rates, e.g. in late 2022/early 2023 - he only bought slightly over 10000 Bitcoins in the year between early June 2022 and June 2023, instead having bought almost 200000, mostly for more than 50k, in 2024. My theory is that it is easier to attract investor money when the bull is already roaring, and if the gamble pays out -- i.e. if the bull markets are only a little bit similar to the earlier bull markets Bitcoin has experiencied -- then the relatively high buy price won't matter that much. So basically Saylor is going for at least $120k. Although he would be even fine if BTC stays below 100k, but substantially above 60k for several years more, because his cost per BTC according to BitcoinTreasuries is 56000 $/BTC approximately.

Helena Yu already explained Credit Default Swaps. Trying to decipher what he means: if "20th century assets" fail, MSTR is an insurance (like a CDS) for them for a value up to 100 trillion USD.

They're running some kind of IOU form of purchase, with the sell of notes to investors. So, the company doesn't need to sell more shares to get Bitcoin. Did you notice that all their holdings barely make changes in the market, or is there something I'm missing out?

They started to buy Bitcoin since August 2020 and they didn't sell when Bitcoin reach ATH in 2021, so I think they will keep holding Bitcoin until they're really big. MicroStrategy is the fastest growing company, Bitcoin make them rise from 5~ ish Billion market cap to 80+ Billion market cap. https://companiesmarketcap.com/microstrategy/marketcap/

Credit default swap is like an insurance for investors. Let's say the investors invest in X company for $1K with the return $50 per month for 3 years, in order to protect the risk of X company can't pay the return, the investors seek Y company that willing to cover the risk if X company can't pay the return/default. Y company get a fee from the investors, but they need to bear the money from X company.

No, Michael Saylor and MicroStrategy don't know anything we don't know, I think this thread might answer your question as to why MicroStrategy keeps buying Bitcoin despite all this bullishness:
Do you understand why MicroStrategy's market cap is larger than BTC holdings?

In short, they are using borrowed investor money as leverage to try to keep their stock price high so they don't lose money, or so I understand.

Overall, it seems to me the only difference between Saylor and many of us is that he walks the talk. He puts his money where his mouth is. He risks in what he believes in. Whereas, many of us are bullish only in words but actually shiver when buying a significant amount of Bitcoin.

Talk is cheap. That's for many of us. We're cheering for Bitcoin, arguing for Bitcoin, promoting Bitcoin, but only risks a little money for Bitcoin. What makes the majority different from a Michael Saylor is that the former prefers to play safe all the time while Michael is taking the risk.

At the same time, we shouldn't discount the genius of Saylor in setting up different strategies to support its Bitcoin buying spree. He issues new shares to acquire more capital to buy Bitcoin. He issues convertible notes and bonds to raise huge amounts of money to buy Bitcoin. He uses both actual money and debt to finance his Bitcoin purchases.

In this respect, he knows a whole lot more than most of us. In the end, however, all this is founded upon his belief in Bitcoin, something that all of us share. Or perhaps, indeed Saylor knows more about Bitcoin than many of us. He seems to be genuinely passionate about the technology, something many of us probably don't share. We only care about the price.

Everyone of us relies on speculation in this market, whether you are a known personality or not. No one knows the exact future of this market so we will only act on what we know so far. If you have strong belief, for sure, you will invest more.

What could they possibly know that we don’t? No one can predict the market. No one controls it. No one has authority over it that anyone or any company can get through. Whatever microstrategy saw is also something available to us. It’s just how they perceived and interpreted it would be the difference.

Clearly they knew better to invest. No tricks there or anything. They just saw potential and they were right.

Can anyone explain to me like if I was a 12-year-old what Saylor means here? Too tired now but if noone can explain it to me, I will look into it.

Basically what Saylor knows is also we what know. We believe in Bitcoin, right? he's simply believing in it as well in the long run. While many of us here probably have bought and held bitcoin for a long period of time, he's on disadvantage of purchasing it on relatively high prices.

We will never know.

But that is for sure will happen in the future, Microstrategy will surely sell at the right time. He might say in the news that they'll hold forever, there will be a point of time that they'll take nice profits but might buyback and make quick money.