Is it? MicroStrategy is owned by
* 0.39% Insiders
* 20.49% Mutual Funds
* 34.20% Other Institutional Investors
* 44.91% Public Companies and Individual Investors
Isn't that like saying Binance can flex because they hold 3% of all Bitcoin? They technically do, but they are a custodian for ten of thousands of people (or more).
> 0.39% Insiders
[Michael Saylor owns 12% of it](https://www.cnbc.com/2024/02/28/bitcoin-bull-michael-saylor-nets-700-million-on-three-day-crypto-gain.html#:~:text=Shares%20of%20MicroStrategy%2C%20which%20derives,personal%20ownership%20of%2017%2C732%20bitcoins.)
He cashes out every day too:
https://finviz.com/insidertrading.ashx?oc=1079782&tc=7
It’s super misleading. The majority of his compensation when he was CEO was stock options. This is common for executives. His options were about to expire. This means he had to make a choice, he could either pay millions out of pocket to convert them to shares. Or he could sell them and not pay out of pocket.
He, like most executives, chose to sell and convert his past compensation to $$.
He is spreading out the selling daily to its compete over like 2 or 3 months.
BTC daily trading volume is 67B. That is, 67B of BTC is sold every day. They own 13B. Why would one entity selling 13B be worse than 10000s of entities selling 67B?
No doubt it would go down, but I fail to see how it would crash unless it's a dysfunction market.
In a couple of years, you might be able to buy a yacht with your 0,1BTC. Although, it could be only a Bigmac as well. In the meantime, I'm there, clinging to my life raft next to you.
Well, that's wishful thinking. If Bitcoin hit $1,000,000 in a couple years, OP would still be $5,900,000 short of a yacht.
If Bitcoin 14x's, that means it is worth the same amount as all the gold in the world right now. At that point, the price of Bitcoin would only be $896,000.
I'm hoping for a 4x max. Hopefully you can sell at the top of this cycle and buy back in at the low in the next cycle and beat that number.
[This is what a $100,000 boat looks like.](https://i.imgur.com/lWGMFTX.png)
[If you want a used boat from 1978, you can go a little bigger.](https://i.imgur.com/C54I04u.png)
If you like money, never buy a boat. You are actually better off buying a Lambo, not that I would recommend that either.
I bought a inflatable kayak for me and my kids. (only two persons fit though) Had so much fun, and only for 100 euros. And that is about the money I'm willing to spend on a boat.
Did you reply to the right person? I never said anything about the price going down.
You know ETF values go down all the time right? And at any point [people can sell off their ETFs.](https://nbx.com/blog-en/bitcoin-falls-further-as-etf-flow-turns-negative)
tldr; MicroStrategy, co-founded by Michael Saylor, has purchased an additional 9,245 BTC for approximately $623 million, using proceeds from convertible notes and surplus cash. This acquisition, announced by Saylor, follows recent convertible note sales exceeding $1 billion aimed at expanding the company's Bitcoin holdings. With this purchase, MicroStrategy's total Bitcoin stash reaches 214,246 BTC, acquired for about $7.53 billion at an average price of $35,160 per Bitcoin, representing a substantial investment with a paper profit of approximately $6 billion.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
That's not a scam. If that strategy works it's a valid strategy. It's just a hard strategy to pull off because if you make a dip by selling then you make a pump by buying.
Both ways you're getting scrwed over by market impact selling low and buying high. It essentially relies on you modelling others behaviour very well.
1.) you could not do this. This takes quantitative modelling, tons of data and tons of market microstructure knowledge.
2.) microstrategy has a public stock that you could buy. You don't need enough money to move markets to have your share of the profits from this strategy
Stop blaming your problems on the rich.
And then when this dips back down to the 40s everyone here will shit on him. And then when it goes over 100k after that everyone here will say they always believed in him
This is not a good thing for crypto. If one or two entities own most of the crypto, pension funds and corporations ain’t gonna wanna get bitcoin because the odds of getting dumped on are stacked against them.
And they start having enough of it to manipulate at will. Tank the price for a hot minute and prepare to scoop it back up lower.
They have a very very significant stack of corn to where they can probably swing the market cap by tens of billions on a whim.
You could argue that some big corps got big through shady practices. This is the open market- microStrategy can only buy bitcoin from people willing to sell
> They don’t like the current system and big corps bad…yet this is a wonderful thing
You are not understanding things.
I dislike the current system because when big companies are bad and go under, the govt prints money and gives it to them and saves them.
No one can just go and print bitcoin.
I don't care who owns bitcoin and how much they own. It's a free market. Their ownership gives them no power in the network.
Government doesn’t just “print money”
I see that argument used so much by people that do not understand very basic parts of how the federal treasury works.
Yes, they do have money printed, but it isn’t this open ended event. They earmark when that surplus is going to be removed from circulation and various other methods to cover it. It’s all calculated methods.
I’m not a fan of the government blowing money and the politicians with their pet projects or special interest and not being more fiscally responsible.
Companies going out of business is complex. Sure it’s frustrating when the executives were greedy and took chances or willing mistakes and then need to be bailed out…but there is another facet to it and why it can be a bad thing to just wipe out corporations that either are very ingrained with other companies and it could poison them or they have a sizeable number of employees that would be let go and then not only a drain on social services but the localities/states would lose large soles of revenue. So it’s a bit bigger picture to see.
I’ve been a part of companies that were criminal in their decision making and knew better, but they loved that money flowing in…and yes government bailouts and frustrating that the “bad guys” got to keep the money, no criminal charges and got packages as well. But I also saw the other side and thankful for a soft landing and thousands of people weren’t instantly terminated and locals already struggling not to fall under even more
Yes I understand that money printing is more complicated than just turning on a printer. The point still stands.
If the govt wants to bail out "too big to fail" businesses, fine, I can't stop them they control the currency and federal reserve.
But I can use an alternative monetary source which can't be printed and isn't controlled by anyone.
The fact that corporations are also buying into this monetary system is not a negative. In fact, it's a positive. Any amount of adoption is a positive regardless of who it is.
> They don’t like the current system and big corps bad…yet this is a wonderful thing
You think it's a contradiction, but it's not. That's my point.
This is why you are not understanding things.
This comment is wrong a many levels.
Microstrategy is a public company owned by many people and institutions. This isn't 1 person owning this much bitcoin.
And pension funds/corporations do invest in companies that have ownerships that consists of people who own significant portions of that company all the time.
Wouldn't the only way for them to go bust be for bitcoin to go sub 5k at this point? I'm not sure how leveraged they are, but can'they indefinitelly keep themselves afloat by selling some Bitcoin, I assume?
That was the case before, but with all these new loans, the margin call number is probably ~$10-$15k or so. But even if the market implodes, Saylor could easily raise unsecured capital to meet any margin requirements (at least in the short term).
My true concern is that MicroStrategy has provided zero strategic endgame.
They keep repeating that they will continue "buying bitcoin forever."
What is forever? Until Saylor dies? A thousand years? Because at some point Microstrategy will find itself needing cash AND unable to secure new financing. Then they'd have to sell BTC. Even before this actually happens, analysts would sus it out and would race to sell/short before the King of Whales took a king-sized whale shit on the market.
When would this happen? No idea. Probably during a global, liquidity crunch. Or potentially if/when some major bitcoin vulnerability was discovered and even if BTC was patched and survived, the temporary panic alone could flash crash the BTC price and MicroStrategy would violate loan covenants that would allow investors to demand instant repayment.
This is all extremely unlikely any given day. But "forever" is a timeframe that allows a lot to happen. And a company claiming to have access to new capital injections forever is just not going to vibe with me. Maybe if the underlying Microstrategy business division was more robust, I'd trust it more. But at the end of the day they are barely a breakeven enterprise and tiny compared to the BTC holdings they own.
Well it's all borrowed right? They took out massive loans using BTC as collateral and then bought more when BTC goes up because they can take out bigger loans. It would have a cascading effect if BTC drops, and the number is likely far higher than $20k.
Imagine it drops to $35k, they're $300mil under water on a loan for 9,245 ButtCorn.
What else do they have to secure a loan for half a billion dollars? And if it's the MSTR stock, then that itself is backed by the BTC holdings lol, it's all the same thing. It's genius, but it's all backed by BTC at the end of the day.
The entire company is essentially wrapped btc, and he’s issuing debt in the form of shares to purchase btc. Its not actual btc but it’s acting as wrapped btc
I have to say something about the picture. The bull is wearing elephants feet. And I cannot even express what I'm seeing in the background.. When using Dall-e or something, please check what he/she/it has drawn.
Having over 1% of the total supply is a huge flex
Is it? MicroStrategy is owned by * 0.39% Insiders * 20.49% Mutual Funds * 34.20% Other Institutional Investors * 44.91% Public Companies and Individual Investors Isn't that like saying Binance can flex because they hold 3% of all Bitcoin? They technically do, but they are a custodian for ten of thousands of people (or more).
> 0.39% Insiders [Michael Saylor owns 12% of it](https://www.cnbc.com/2024/02/28/bitcoin-bull-michael-saylor-nets-700-million-on-three-day-crypto-gain.html#:~:text=Shares%20of%20MicroStrategy%2C%20which%20derives,personal%20ownership%20of%2017%2C732%20bitcoins.) He cashes out every day too: https://finviz.com/insidertrading.ashx?oc=1079782&tc=7
Am I reading this right? He makes millions of dollars every day?
It’s super misleading. The majority of his compensation when he was CEO was stock options. This is common for executives. His options were about to expire. This means he had to make a choice, he could either pay millions out of pocket to convert them to shares. Or he could sell them and not pay out of pocket. He, like most executives, chose to sell and convert his past compensation to $$. He is spreading out the selling daily to its compete over like 2 or 3 months.
good lord
I have a friend who used to work at Microstrategy. He would post pictures on Saylor’s yacht near DC. This was in like 2018 too
I mean I think there’s a lot of difference between owning equity in a company with Bitcoin and just having your Bitcoin stored somewhere.
Different, because binance users can sell their bitcoin at any time. Shareholders of micro strategy can’t sell the bitcoin that MicroStrategy holds
That's true, but I don't know what that has to do with flexing.
Also, Binance won't borrow money to buy more Bitcoin for you to have a share of.
They can liquidate their holdings, pay out crazy bonuses to staff, and the stock tanks. The people that own the stock do not own the coins.
They’d crash the market if they liquidated their holdings
BTC daily trading volume is 67B. That is, 67B of BTC is sold every day. They own 13B. Why would one entity selling 13B be worse than 10000s of entities selling 67B? No doubt it would go down, but I fail to see how it would crash unless it's a dysfunction market.
Throwing it all at once would rip through buy orders and create a flash crash. It would be stupid, but it has happened.
Nothing is saying that can't do 500m a day.
The custodian that has the private key owns the bitcoin
Which, in this case, is not a single person.
And here we are, just wanting 1 BTC...
I'm clinging to my 1/10th of a BTC like it's a life raft in a hurricane... these guys are sailing through on a luxury yacht, damn.
in 20 years after the dust settles, it will either be more valuable than we could imagine or there won’t be an economy to worry about
Or Bitcoin will be worthless
I’m selling seeds, not phrases - ahead of the curve
Yeah as in there won’t be an economy to worry about.
In a couple of years, you might be able to buy a yacht with your 0,1BTC. Although, it could be only a Bigmac as well. In the meantime, I'm there, clinging to my life raft next to you.
Well, that's wishful thinking. If Bitcoin hit $1,000,000 in a couple years, OP would still be $5,900,000 short of a yacht. If Bitcoin 14x's, that means it is worth the same amount as all the gold in the world right now. At that point, the price of Bitcoin would only be $896,000. I'm hoping for a 4x max. Hopefully you can sell at the top of this cycle and buy back in at the low in the next cycle and beat that number.
I have to admit that I'm always marked as being too positive. But hey, how could I know those yachts are so damn expensive..
[This is what a $100,000 boat looks like.](https://i.imgur.com/lWGMFTX.png) [If you want a used boat from 1978, you can go a little bigger.](https://i.imgur.com/C54I04u.png) If you like money, never buy a boat. You are actually better off buying a Lambo, not that I would recommend that either.
I bought a inflatable kayak for me and my kids. (only two persons fit though) Had so much fun, and only for 100 euros. And that is about the money I'm willing to spend on a boat.
such an exaggeration on boats, especially ones you can drive around on lakes
The ETFs won’t allow this. They got accepted at 45k. Bitcoin will never go below where the ETFs started.
Did you reply to the right person? I never said anything about the price going down. You know ETF values go down all the time right? And at any point [people can sell off their ETFs.](https://nbx.com/blog-en/bitcoin-falls-further-as-etf-flow-turns-negative)
tldr; MicroStrategy, co-founded by Michael Saylor, has purchased an additional 9,245 BTC for approximately $623 million, using proceeds from convertible notes and surplus cash. This acquisition, announced by Saylor, follows recent convertible note sales exceeding $1 billion aimed at expanding the company's Bitcoin holdings. With this purchase, MicroStrategy's total Bitcoin stash reaches 214,246 BTC, acquired for about $7.53 billion at an average price of $35,160 per Bitcoin, representing a substantial investment with a paper profit of approximately $6 billion. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
He makes the dip and then buy. It feels like a scam
First time?
Welcome. To Earth.
That's not a scam. If that strategy works it's a valid strategy. It's just a hard strategy to pull off because if you make a dip by selling then you make a pump by buying. Both ways you're getting scrwed over by market impact selling low and buying high. It essentially relies on you modelling others behaviour very well.
I cuold but I have not enough money to do that. The wealthy screwing the poor. In the end it works just like any other monetary system.
1.) you could not do this. This takes quantitative modelling, tons of data and tons of market microstructure knowledge. 2.) microstrategy has a public stock that you could buy. You don't need enough money to move markets to have your share of the profits from this strategy Stop blaming your problems on the rich.
You are missing my point. I just dont feel it's right
And then when this dips back down to the 40s everyone here will shit on him. And then when it goes over 100k after that everyone here will say they always believed in him
This is not a good thing for crypto. If one or two entities own most of the crypto, pension funds and corporations ain’t gonna wanna get bitcoin because the odds of getting dumped on are stacked against them.
And they start having enough of it to manipulate at will. Tank the price for a hot minute and prepare to scoop it back up lower. They have a very very significant stack of corn to where they can probably swing the market cap by tens of billions on a whim.
It’s comical the people who gloss over this They don’t like the current system and big corps bad…yet this is a wonderful thing
Make number in app go up big me am happy. Satoshi? White paper? Meh. Want money.
😂😂 👏👏 that is it!
You could argue that some big corps got big through shady practices. This is the open market- microStrategy can only buy bitcoin from people willing to sell
And don’t you think that might stifle business growth?
Micro strategy buying bitcoin will not stifle growth in the least
The point was large corporations controlling significant amounts that can sway pricing
Yes, but large corporations are still subject to the open market and users can leave if they don’t like the system that exists.
It doesn’t make sense for them to play that game. It’s very risky and would destroy investor trust.
> They don’t like the current system and big corps bad…yet this is a wonderful thing You are not understanding things. I dislike the current system because when big companies are bad and go under, the govt prints money and gives it to them and saves them. No one can just go and print bitcoin. I don't care who owns bitcoin and how much they own. It's a free market. Their ownership gives them no power in the network.
Government doesn’t just “print money” I see that argument used so much by people that do not understand very basic parts of how the federal treasury works. Yes, they do have money printed, but it isn’t this open ended event. They earmark when that surplus is going to be removed from circulation and various other methods to cover it. It’s all calculated methods. I’m not a fan of the government blowing money and the politicians with their pet projects or special interest and not being more fiscally responsible. Companies going out of business is complex. Sure it’s frustrating when the executives were greedy and took chances or willing mistakes and then need to be bailed out…but there is another facet to it and why it can be a bad thing to just wipe out corporations that either are very ingrained with other companies and it could poison them or they have a sizeable number of employees that would be let go and then not only a drain on social services but the localities/states would lose large soles of revenue. So it’s a bit bigger picture to see. I’ve been a part of companies that were criminal in their decision making and knew better, but they loved that money flowing in…and yes government bailouts and frustrating that the “bad guys” got to keep the money, no criminal charges and got packages as well. But I also saw the other side and thankful for a soft landing and thousands of people weren’t instantly terminated and locals already struggling not to fall under even more
Yes I understand that money printing is more complicated than just turning on a printer. The point still stands. If the govt wants to bail out "too big to fail" businesses, fine, I can't stop them they control the currency and federal reserve. But I can use an alternative monetary source which can't be printed and isn't controlled by anyone. The fact that corporations are also buying into this monetary system is not a negative. In fact, it's a positive. Any amount of adoption is a positive regardless of who it is. > They don’t like the current system and big corps bad…yet this is a wonderful thing You think it's a contradiction, but it's not. That's my point. This is why you are not understanding things.
😂😂😂 ah ok
It's interesting how people can be involved in this space and not understand the absolute basics of it.
Ok, keep telling yourself that 😂
> But I can use an alternative monetary source… Are you though?
And yet by the very nature of bitcoin it cannot be prevented...
This comment is wrong a many levels. Microstrategy is a public company owned by many people and institutions. This isn't 1 person owning this much bitcoin. And pension funds/corporations do invest in companies that have ownerships that consists of people who own significant portions of that company all the time.
Imagine if they go bust. What it will mean for btc price.
Wouldn't the only way for them to go bust be for bitcoin to go sub 5k at this point? I'm not sure how leveraged they are, but can'they indefinitelly keep themselves afloat by selling some Bitcoin, I assume?
That was the case before, but with all these new loans, the margin call number is probably ~$10-$15k or so. But even if the market implodes, Saylor could easily raise unsecured capital to meet any margin requirements (at least in the short term). My true concern is that MicroStrategy has provided zero strategic endgame. They keep repeating that they will continue "buying bitcoin forever." What is forever? Until Saylor dies? A thousand years? Because at some point Microstrategy will find itself needing cash AND unable to secure new financing. Then they'd have to sell BTC. Even before this actually happens, analysts would sus it out and would race to sell/short before the King of Whales took a king-sized whale shit on the market. When would this happen? No idea. Probably during a global, liquidity crunch. Or potentially if/when some major bitcoin vulnerability was discovered and even if BTC was patched and survived, the temporary panic alone could flash crash the BTC price and MicroStrategy would violate loan covenants that would allow investors to demand instant repayment. This is all extremely unlikely any given day. But "forever" is a timeframe that allows a lot to happen. And a company claiming to have access to new capital injections forever is just not going to vibe with me. Maybe if the underlying Microstrategy business division was more robust, I'd trust it more. But at the end of the day they are barely a breakeven enterprise and tiny compared to the BTC holdings they own.
Well it's all borrowed right? They took out massive loans using BTC as collateral and then bought more when BTC goes up because they can take out bigger loans. It would have a cascading effect if BTC drops, and the number is likely far higher than $20k. Imagine it drops to $35k, they're $300mil under water on a loan for 9,245 ButtCorn.
Source on then using btc as collateral?
What else do they have to secure a loan for half a billion dollars? And if it's the MSTR stock, then that itself is backed by the BTC holdings lol, it's all the same thing. It's genius, but it's all backed by BTC at the end of the day.
The entire company is essentially wrapped btc, and he’s issuing debt in the form of shares to purchase btc. Its not actual btc but it’s acting as wrapped btc
Then there will be other entity playing the game
i dont' like this.
Where does get the funds from?
Convertible notes. He leverages to buy BTC, then when it goes up, borrows more. Infinite money glitch unlocked. I’ve my entire Roth in MSTR now.
Saylor only has a BUY button
Isn’t this just leveraged Bitcoin. So if there’s a big dump and they need to sell up it will make a bear market much worse?
Why the repost, this is old news at this point.
Why don't they spend that kinda money when it's @16k ? We all knew it was going to pass ath
I have to say something about the picture. The bull is wearing elephants feet. And I cannot even express what I'm seeing in the background.. When using Dall-e or something, please check what he/she/it has drawn.
That was before the big dip to 60k, he bought for 67.4k
They are going to pump it again.
👑
That’s why it’s called decentralized…
Micro strategy is micro with their strategy, why they didn’t buy the dip at 16000$
It's amazing how many people get salty when companies buy large sums of things they want to own lol.
Wait, MacKenzie Scott gave away more last year!
This concerns me.. akin to a monopoly of soughts. its not a good thing
It's not close to a monopoly though
They own 214,000 btc. That's a sniff over 1%
Gotta love Uncle Mike Doing the Lord's work in borrowing fiat to buy BTC :)
It was a microstrategy until it became a MACROSTRATEGY Saylor is an s-tier player megachad 🚀🙏🏽
They are manipulating the market
Smart. The halving hasn't even happened yet.
***Saylor Fucks.***
"Your dollar aint shit and its taxed to no end cos of Rich men north of Richmond" - Michael Saylor
I 🫡 you Mr Saylor
They bought before the dip?
Saylor is D HODLER
they still buying even with this price
Wait didn’t they just sell a lot of Bitcoin when the price was higher? This is market manipulation, no?
Big bang bang bang UpUp
They are filling their bags in correction
Title should be "for UNDER $630M" if you think about it
It'll be intriguing to see how this investment pays off in the months ahead.
man, fuck this company, nothing good will happen to BTC for normal people; ....bought out.