Last Friday MicroStrategy paid off its loan to Silvergate Bank at 20% discount. They borrowed $205 million last year, only had to pay back $161 million. Interesting thing is they have raised about $340 million by selling company stocks to pay back the loan. What do they do with the remaining money? They bought 6,455 more bitcoins. Why? Because bitcoin is magical and nobody is as obsessed about bitcoin as Michael Saylor.
Now MicroStrategy holds about 138,955 bitcoins. Impressive! This doesn't even include 17,000 bitcoins that Michael Saylor personally owns. Prices go up, prices go down - Saylor continues to accumulate the money of the century. Saylor no longer is the CEO of MicroStrategy, he resigned from that position about eight months ago. But he still plays a decision making role in the company as an executive Chairman.
When Michael Saylor transitioned into Chairman role and gave up his CEO position, it was clear at that time that he no longer wanted to be distracted from the day to day operations of the core MicroStrategy business. He focus has fully shifted to bitcoin and bitcoin strategy of the company. Some criticize him for turning the company into a bitcoin business, instead of focusing at what they are good at. Time will tell if/when this bitcoin strategy plays out successfully.
I have a lot of respect for Michael Saylor as a businessman, and a bitcoin advocate. Unlike many others who try to promote one product or other, Michael Saylor has been truthful and honest about his vision regarding bitcoin. He articulates better than anybody the reasons why bitcoin is revolutionary and one of the best investments anybody could make in this century. He doesn't sell something he is not buying himself, and it seems he is willing to do so at any price as long as he has some cash. That is a real conviction. Not everybody can do that. Just like any investment, bitcoin is not completely risk free.
This strategy may work for big companies and wealthy individuals with a lot of cash. Even though they are investing almost everything they have, that is still almost everything. They have basic life needs taken care of and more. They don't have to worry about mortgage or rent payments, they don't have to worry about grocery shopping expense, raising children, and supporting families. They are all taken care of. This is not the case for the ordinary people. Regular people can't just go all in on an investment, and disregard everything else. Life is expensive.
However, continuous and fearless accumulation of bitcoins by Saylor and MicroStrategy is inspiring. I believe everybody should have some bitcoin or satoshis in their wallets, but only with the money that is not needed for daily expenses. Money in savings is best kept as bitcoin, hive or hbd. Not a financial advice.
Since Saylor entered into bitcoin space, he has played a great role in educating people, companies, and institutions about the value proposition of bitcoin. He has become an influential speaker for bitcoin and he does it well. His experience in business space and academia does bring a lot of credibility to this speeches, interviews, and thoughts. Still most impactful and powerful thing he has done is buying more and more bitcoins. It is obvious to everybody that he doesn't just talk bitcoin, but also walks bitcoin.
He is also criticized about being bitcoin maximalist, as he doesn't see similar value in other crypto projects. He explains his reasons well. However, the main reason that nobody should expect him to be anything less than bitcoin maximalist, is the amount he and has company has invested in bitcoin. Not only they have all cash they have on bitcoin, but also took out huge loans to buy more. I am sure he has competent financial, accounting, and legal professionals who consider all possible risks when they make such financial decisions for the company. So far it seems his strategy is working well and I hope it will become one of the most successful investments and business strategies.
One question some may ask is - Why would a company need so many bitcoins? 100k bitcoin is already a lot and should be more than enough for any one company. Especially because bitcoin is decentralized and total possible coins is limited to only 21 million (even less considering all the lost coins). The scarcity of the asset and its decentralized nature is precisely why I believe they continue buying. Because they understand companies, institutions, and even counties sooner or later will discover the potential of this money. As time goes by acquiring more bitcoins will become more difficult.
Although Saylor's intentions are to never sell their bitcoins, at some point they will have to take profits at least to cover the loans. Perhaps it won't happen anytime soon as long as Saylor in charge of this sailing ship.
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shares in MS anyone ?
Do you think it is a good idea to buy MS shares with accounts that can’t directly buy bitcoin or crypto?
Its quite an interesting strategy. And surely their buying alone must also affect the price which is to their gain. They are also tying it up, so its less freely available, again affecting the price to their gain. Plus they must be making money of it in other ways as well.
I guess one of their other main points is the scarcity and that it will become one of the ultimate assets, and will hence be worth far more in the future. And when that happens they will be sitting on gazillions worth ! I think I need to start accumulating more BTC !
Initially they were buying with cash accumulated with business profits (half a billion dollars), then decided to put all future profits into bitcoin as well. Then they figured out they can get long term loans with low interest and bought more. Then figured out they can sell more company stocks and use that money to buy even more.
I think it was a good deal for Micheal Saylor but I wonder if it's a good thing that he holds so much BTC. It sounds like the centralization of BTC might be happening as they buy more BTC and it looks like Silvergate needed to raise some cash fast.
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Pushing 150K BTCs really is a CHUNK of Bitcoin, I wonder how many dollars or gold one company would have to hold to have a similar share of the max supply? If you can even compare given the differences in max supply!
That is great observation/thought. Apple usually holds a lot of cash in fiat. But that probably nothing compared to the total supply of USD.
A drop in the ocean, I would have thought, I wonder how much BTC Apple have?!?
They're dollar-cost-averaging on a huge scale.
Microstrategy is one of the golden hands in the Crypto Space, this man keeps buying in every dip, and i have a feeling that, when bitcoin will reach all time high, he will be one of the richest man in this world, Or atleast in the top 10
He is already rich. I don’t think cares much about wealth, but cares more about property rights.
They are doing all right. I guess their micro strategy is much more giga after all.
That's a crazy amount of bitcoins but I'm really happy to see that people still fight for a better future in the crypto world, or at least as it was a while ago, and that they are not discouraged. I still believe in their future too!
"Now MicroStrategy holds about 138,955 bitcoins" - That's a lot of Btc lol
Having such control over the supply might not be the healthiest thing for the industry. Imagine if he decides to sell 10% of the supply owned, it might have a huge impact on the market - especially if there's no deep liquidity to absorb the selling pressure. On the other hand, he is free to do whatever he wants, that's the beauty of capitalism and private property.
Fun times ahead.
Selling 10% wouldn’t do anything really. Even selling all would hurt bitcoin in long term, maybe only short term price decline. However, the fact the decided to sell could cause panic and make others sell as well. That probably would create long bear market, similar to what happened in 2018 when MtGox trustee sold significant amounts of bitcoin and announced afterwards that they may sell more.
That is a whooping sum of amount. Well, I know that the crypto world will still gain a lot of attention very soon and I hope the time comes very fast
It is the only company that has bought Bitcoin in every sonerio. As two days ago, because of Binance, the Bitcoin came down, even then he has also bought. This is not a small company, its owner is a very intelligent person. The way we're seeing news in the market today is that China is coming full circle into crypto, which is very good news for the crypto. The way the situation in the banks has come to light in the last few days, the test of people has completely ended on top of it and people are coming into crypto.
Microstrategy has a strong balance sheet. Of all the mamy companies going bankrupt, this one is actually thriving. Now with BTC up its going to make them a big player again !
It's impressive that MicroStrategy continues to accumulate bitcoins, and it's inspiring to see Saylor's conviction and fearlessness in investing in this asset. Your admiration for Saylor's vision and honesty is a testament to his success in educating people, companies, and institutions about the value of bitcoin. Although the investment strategy may not work for everyone, the continuous accumulation of bitcoins by MicroStrategy is something to be celebrated. Keep following your interests and learning more about the fascinating world of cryptocurrency.
He's interesting philosophy about Bitcoin which he has been implementing for almost a decade now is something that many people admire. Private institutions will do well emulating some of his strategies and considering Bitcoin investment in their investment portfolio. I think that has been one of his goals, to serve as a role model and lead by example.
He has been truthful and honest about his vision for the cryptocurrency. Though Bitcoin is not risk-free, people should invest only what they can afford to lose. They are now trusting more on crypto amid the scarcity and financial crysis many banks are defaulting. Which leds us to question weather we should even keep our money in the banks or not. Whatsoever i am very positive for cyrpto's future, i beleive that digital money is the future.
why they have to pay less after the bank went bankrupt?
maybe they are planning to use bitcoin they have to acquire more business in the future so that they don't have to sell bitcoin in the market. who knows, but they surely has a lot of bitcoin on their hands.
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Bank needed the money, the made a deal. I doubt any intentions of expanding their business or acquiring other companies. Saylor has spoken about that in the past, that they are good were they are at as a company.
i used your profile pics just because they were on front page, as an example of my mockup of voice.com (stolen from steem/ @dclick) style banner ads on top of each post showing the top upvoter/tipper and smaller icons of every voter aon the bottom, WE SHOULD HAVE that ANYWAY, we shoudl show every account that upvoted a post as small clickable icons, with teh biggest upvoter at the top as a banner ad linking to teh url in their profile!)
here ya go i just had to show you both because i used your pofile pics as examples
oh and michael saylor yeah yeah sure whatever lol great article lol u should post on @snipverse @geekgirl youd do well teher and ill gve uyou 10,000 snips
Interesting, but I don’t understand the purpose of the banner. Is this a new front end for Hive or completely separate app? What blockchain does Snipverse use?
Thank you!
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:) way to go Saylor!
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Investment is about taking a profit, so it makes sense that eventually a good chunk of those bitcoins will be sold. It would be awfully hard to hodl completely if btc were to hit a dollar a sat...
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