MicroStrategy has now invested $475 million into Bitcoin, but this may just be the beginning...
If you are in crypto you have likely heard about MicroStrategy by now.
They were the tech company that took the crypto world by storm when they announced they were putting hundreds of millions of dollars of their company's treasury assets into bitcoin.
Something not many other companies had done before them.
After buying another $50 million a few days ago, they have now invested a shaded under $500 million total in bitcoin.
https://hive.blog/hive-167922/@jrcornel/microstrategy-buys-another-usd50-million-in-bitcoin
Not too shabby!
However, it's not just what they have already bought that gets me excited, it's what they could be buying the future...
Here's what gets me really excited...
If you saw the quote from CEO Michael Saylor the other day you likely got the fact that they invested another $50 million into bitcoin... that part was clear.
However, there was something else in there if you dig a little deeper that got me really excited...
Here's the quote btw:
(Source: https://hive.blog/hive-167922/@jrcornel/microstrategy-buys-another-usd50-million-in-bitcoin)
Specifically this part:
"in accordance with its Treasury Reserve Policy"
Hmm... now that could be taken several ways but the way I read it, it sounds like they are going to be continuing to invest whatever excess cash they have in bitcoin "in accordance with its Treasury Reserve Policy"...
That may be a reach on my part or it may not be, tough to say at this point, but if it's not, that would mean that the more excess revenue/cash the company generates, the more bitcoin they will be buying.
They paid over $19,400 per bitcoin with that recent $50 million, which is near the top of the current range. That may also indicate that they don't care much about price and are simply going to be dumping whatever excess cash they generate into bitcoin.
So, the better MSTR does as a company, the more bitcoin they are going to scoop up!
Their stock price has been absolutely soaring these last several months, trading along with bitcoin more than anything that they company is doing, imagine if they were to sell some more equity?
They could use that equity to grow the business, generate more revenue and eventually excess cash, which you guessed it, could then be used to be more bitcoin!
See the cycle here?
There is no guarantee that it will work like this, and it probably won't, but it may work out in sort of variation of that, which also includes buying more and more bitcoin as the months go by.
This puts a major buyer on the bid at whatever price for bitcoin, which is what it's going to need to keep pushing it higher when the price gets to really crazy valuations eventually.
Just some things to think about.
Stay informed my friends.
Image Source:
-Doc
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Even though Bitcoin is trading at a much higher premium than the last time he bought, he likely realizes the shift in the market; a shift he very much helped create. Bitcoin sentiment is turning around very fast and becoming hyper bullish across institutions. He's looked at the charts the same as the rest of us and probably comes to the logical conclusion that another mega bubble is coming.
2021 Bitcoin Doubling Curve
Also interesting to note that the doubling curve will be at $20k in summer 2021... so even if we crashed all the way back down to $13k we'd likely bounce back in six months anyway.
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Yea, though it sounds like it isn't so much about market timing as it may be about their Reserve Allocation Strategy where they take excess cash and pump it into bitcoin. If that is the case then the only variable on when they buy bitcoin or not will be how much cash MSTR the company is generating! Interesting development :)
That being said, the last time they bought the price doubled over the following couple months. Perhaps that happens again as well.
Michael Saylor is a person who gives me a very good vibe. I saw him in an interview on Kaiser report and I have read things he says and he is a person who in addition to being very intelligent has a lot of conscience with a vision of real and consistent life.
Their brave bet in Bitcoin, with which they would have crucified it if it falls to $ 6000-$ 7000 in the following months, has not only got more large companies to do the same and push the price. For me the biggest thing it has achieved is that the community of users endorse and defend Bitcoin, they are no longer a bunch of geeks. Now when regulations arrive or whatever the government wants to do, there is a business force that will condition these "SHITS" texts so that they are not so "SHTITS" texts
Yea he is quite literally a genius in terms of IQ. Former MIT graduate. He is ether going to be a legend for his move with MSTR or out of job over the coming years.