MicroStrategy knows or not?

[doesntworkthatway]

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

[yhiaali3]

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?

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.

[red4slash]

Hello. I read today in this article that Microstrategy and its chairman, Michael Saylor, hold 386,700 BTC, thus the ~1.84% of the total BTC supply. Many of these were purchased in 2024 and at relatively high prices.

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.

[Hewlet]

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.

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.

[Free Market Capitalist]

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.

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.

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.

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.

[Synchronice]

Hello. I read today in this article that Microstrategy and its chairman, Michael Saylor, hold 386,700 BTC, thus the ~1.84% of the total BTC supply. Many of these were purchased in 2024 and at relatively high prices.



And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

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.

[davis196]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions. Cool

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.

[Yucky]

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.

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.

[iv4n]

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.

[Swordsoffreedom]

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?

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.

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

[MarjorieZimmermanGinger]

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.

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.  

[d5000]

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 meant something similar: the important issue seems to be that it's easier for Microstrategy to get liquidity to buy Bitcoin in bullish phases. It doesn't matter that much if he's very long term oriented like he says, or if his horizon is (secretly) a bit closer in the future, e.g. late 2020s.

The big problem of this strategy is however that it makes MSTR also vulnerable to short-term price swings because they always will buy above the average price. Let's say we have a crash in late 2025 and 2026. MSTR has already survived the 2022 crash, but there were fears of bankruptcy at one point if I remember correctly and MSTR suffered in this phase. Now let's suppose that the crash in 2026 is slightly deeper than the one in 2022. If things play out badly, the high cost of the Bitcoins Saylor bought in late 2024 and 2025 could then become a problem. If the investors demand repayment in cash of their bonds, then he may be forced to sell BTC for a loss, dipping the market further.

I can however not imagine a solution for the problem. He can't simply say: "okay, I'll buy the dips only", because he also doesn't know when and if dips happen. And if he retains the income from his notes and hodls them until the next bear market then for sure this will not be as attractive "story" for the investors. "It can only go up from now on" sells better.

In conclusion, the "rules" of the stock market (your company is higher valued when the prospects are good and thus you have more liquidity) limit the possible profitability of the MSTR model, which would be higher if he was able to buy more BTC in low-price phases, and make it also more risky. Thus I'm not really convinced of the model, it may even be an accelerator of one of the next crypto bear markets if Microstrategy is forced to sell BTC eventually.

I don't quite see why he puts his common stocks as a hedge and not bitcoin itself.

Because the post is pure marketing and not scientific (he benefits more from MSTR increases than from BTC increases)? For me the post isn't specially "deep". I however have some doubts about the legality of such a style of communication ...

[Jegileman]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

They know beyond which we know, this is a company that always does investment for the purpose of getting profit, so do you think they will invest this much into an asset that they won’t get the profit in the long run? I don’t think so. Microstrategy have set a big example to big companies alike if they really know that. They should follow in the footstep of Microstrategy. If a big company like this can have such a big investment in bitcoin and keep adding more even when the market is on bullish trend, then why not trust in this project and also invest for the future.

Maybe they’ve seen the future much ahead of us and will likely get their share of the profits when we already ate ours. Few years ago, Microstrategy started their investment in bitcoin and it’s a great thing to see how big of a profit they’ve made over this period. What other investments can give such ROI on investment within a short time? It is bitcoin and only it can continue to give that. Anticipating for the future when it become a legal and adopted currency worldwide.

[sunsilk]

And I wonder. Do they know something we don't and are buying aggressively?

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.

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.

They know that whoever gets first, gets the most. And this is what they do. They're recalling the great gold rush that has happened in the past.

That's one comparison that we're probably having right now. So, it's two birds with one stone for them. They hit and get Bitcoin as they acquire more.

At the same time, the shares of MSTR are growing together with it.

[Samlucky O]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

You asked as if you don't know why they are buying Aggressively. We all knows that bitcoin is the future asset treasury that will ever exist to replace Gold and many people are clamoring to make sure they have a slice of it before it supercede gold. Undoubtedly Michael Saylor is doing pretty well in accumulating bitcoin and surly I see them following Satoshi Nakamoto suits. Because if Satoshi Nakamoto HODls apparently 1m bitcoin and Michael Saylor Microstrategy is HODLing this amount then surely they may be second highest bitcoin HODLer aside Satoshi. And if they continue this they may even supercede Satoshi total amount HODLings. For me I am seeing microstrategy heading to the world richest firm with bitcoin investment expecially when bitcoin rises above $500k ish.

[bias]

You asked as if you don't know why they are buying Aggressively.

I think that I know but in fact, I don't know. The simplified theory though behind this strategy is that the company can repay the fiat debt by selling less bitcoin in the future.

Because if Satoshi Nakamoto HODls apparently 1m bitcoin and Michael Saylor Microstrategy is HODLing this amount then surely they may be second highest bitcoin HODLer aside Satoshi.

No, it's not the second, and in order to be the second needs to buy a "bit" more...



*The source that I found needs some update but I couldn't find a more accurate one. If anyone can find a newer list, please share it.

Let's see how many others will adopt this (Micro) strategy...

[icalical]

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.

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.

While MicroStrategy aggressive buys on Bitcoin attract people attention, it isn't always all good things. The recent investment of 5.4 billion happened when Bitcoin hit an all-time high of nearly touch 100k. While this adds to market hype, it also increases risk, both MicroStrategy stock and their long term strategy would be under pressure. I also think that there might be a possibility that while their strategy can increase demand, this could tend to overhype, risking unsustainable price surges that would result in possible corrections.

[The Sceptical Chymist]

If you want to know more, we usually debate about it in the thread:

MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’

OP should have checked the first page of Economics before starting this thread, because the one you linked to was probably right near the top of it and there's no reason for this one to exist.  There aren't any new or even interesting questions being asked here, and if this isn't locked soon it's just going to turn into a magnet for shitposters since Economics has become a cesspool like so many other sections.

Do us a favor and practice some good forum etiquette, bro.  There's a button on the lower left hand corner of the screen that you can see, and it says "lock topic".  Please do exactly that and follow Poker Player's suggestion to engage in the MSTR/Michael Saylor chat in the thread that's been running for years.

[lovesmayfamilis]

Interesting. If Microstrategy knows anything, this question should be forwarded directly to this company or directly to Michael Saylor. All other answers, in the absence of the above, will be just guesses and fantasies, right? How can anyone know what is in the mind of another person? Just as we can know the next steps. There is a lot of information about this company and its owner, about Saylor's passion for Bitcoin. It can also be guessed that Saylor, like each of us, wants to increase his investments and get as much profit as possible.

[DubemIfedigbo001]

And I wonder. Do they know something we don't and are buying aggressively? To what point will they continue this strategy and what do they expect to gain, besides the obvious? Share your thoughts and opinions.

Well, I don't think they know a more helpful information about bitcoin than we all know here, Bitcoin is the future, and it is still much early in its evolution, they don't want to be left out and they are taking advantage of these early days of bitcoin to accumulate future riches for themselves, which is the same thing most of us are doing now, although in smaller fractions. The opportunity is handed over to everybody, not just MicroStrategy or tesla to prioritize bitcoin and get as aggressive as we can be in accumulating it. They may have set the standards for the recent days' aggressive accumulation pattern and if we have more whales like them dive into bitcoin, $150k - $200k in this Bullrun would not be farfetched.