MicroStrategy won't stop until they are the first quazi Bitcoin ETF
MicroStrategy now looks like they are going to be selling convertible notes for $550 million, up from the previous announcement of $400 million.
Rewind the clock several months...
First MicroStrategy (MSTR) bought $425 million worth of bitcoin back when it was trading near $11k.
Then they bought another $50 million over $19k.
https://hive.blog/hive-167922/@jrcornel/microstrategy-buys-another-usd50-million-in-bitcoin
Then they announced a convertible debt offering worth $400 million where they planned to use the proceeds to buy bitcoin.
And now, they upped that debt offering from $400 million to $550 million.
Wowza! Did you follow all that?!
Crazy like a fox!
In all my years in finance, I have never seen anything like this, in fact I've never even heard of anything like this.
The closest that comes to mind was when the Hunt brothers attempted to corner the silver market and cause a massive run-up in the price of silver.
This is different in many ways, though one has to wonder if that is in the back of Michael Saylor's (CEO of MSTR) mind... Remove all the supply off the exchanges and then any demand that comes in pushes the price significantly higher.
He will never admit that publicly, but it's entirely possible it's in the back of his mind...
Especially when you see charts like this:
(Source: ~~~ embed:1337013384588521472/photo/1) twitter metadata:Q29pbkNvcm5lckRhbm55fHxodHRwczovL3R3aXR0ZXIuY29tL0NvaW5Db3JuZXJEYW5ueS9zdGF0dXMvMTMzNzAxMzM4NDU4ODUyMTQ3Mi9waG90by8xKXw= ~~~
That's the balance of bitcoin sitting on exchanges.
As you can see it continues to be in a massive downtrend as more and more bitcoin are being removed from exchanges every single week.
And this doesn't even include the $550 million on the way to remove another chunk.
2021 is going to be a lot of fun folks, hope you are ready!
Stay informed my friends.
-Doc
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Yeah this is getting out of control, and it is only the beginning. Truth be told, I was wondering if my prediction of $250k Bitcoin in 2021 was ridiculous. How in the world could that possibly happen?
Now I'm going to be surprised if it doesn't happen.
It seems as though even institutions fall victim to the intoxication of Bitcoin. You get some Bitcoin, and then you want some more, and then you get some more, and then you're thinking about how you're gonna get that next score. Bitcoin: the gateway drug.
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Haha yep, and this is just one company. What happens when a couple more companies start doing this? And then a couple more after them? It won't take many of them getting involved like this before there is no more supply out there and the price has no where to go but up. MSTR, the company that helped corner the bitcoin market!
And when you consider that worldwide only around 1% (if I remember correctly) are involved ...
Not only that, but all the institutions are saying we should have 1% of our assets in Bitcoin as a hedge. What happens when they are like, "You, know what? 2% is smarter now... no wait 3%... no wait 5%."
This is already happening.
Looks like they want to leverage up a bit. I read somewhere that they're still buying more than is newly created. MicroStrategy alone! Edit: or was that Grayscale?
I know Grayscale is. Combine them with Square, PayPal, and also MSTR and you have a ton of BTC being removed from circulation.
That's right. I edited my comment, and see your correction.
This is tremendous news! The more bigger stock exchange players come into the game,the better for anyone and the harder to block it by the state!
Dumping billions of FIAT, will make BTC and hopefully some good alts grow in value.
BTC will be the Gold of the century and the alts the currencies. BTC shall be stored, not used, even if it sounds counter-intuitive, the less liquidity the better.
Like you told a couple of days ago, IRA accounts will help a lot of people at old age with this type of investment.
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Yep, that is the hope. Imagine of a couple other companies start doing this as well.
That would be the time for a buy to get before some other big players rush is, regardless the price. Keep it and forget about it the next 2-3 years. If one manages to get 1-2 of this babies, they will be able to live a life of abundance if patient enough in the next 4-5 years.
Thanks for the continuous updates!
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oh my days this guy is cray
They are really pushing the envelope with bitcoin!
Bitcoin IOU network better hurry...Retail investors are going to have to pay through the nose in 2021
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Just when I think I am starting to understand crypto, finance, and investing, there is another term or concept that gets thrown at me and spins me on my head. All of this was so far over my head. I am going to dig into it again and see if I can understand it better.
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Even my bank in Singapore is getting into the game.
https://www.bloomberg.com/news/articles/2020-12-10/dbs-to-start-members-only-digital-exchange-for-cryptocurrencies
I cannot help feel this Microstrategy strategy may be to ward of takeover.
This needs to be updated... :)
Oh yeah! on this wealthy subject, no wonder that every second we'd need a quick update.