r/investing
Michael Saylor's Strategy Sold 32 Bitcoin at $77,135; Then Piles $101 Million Back in at $65K
Strategy sold 32 BTC at $77k and bought 1,550 BTC at $65k using proceeds from $181M stock offering, boosting cash reserves to $1B.
- Successfully executed a high-sell, low-buy strategy, selling BTC at $77k and repurchasing at $65k.
- Increased USD cash reserves to $1 billion, providing more dry powder for future purchases.
- Effectively utilized ATM stock offerings to fund Bitcoin acquisitions without taking on traditional debt.
- Dilutes existing shareholders by continuously issuing new Class A common stock to fund Bitcoin purchases.
- Highly exposed to Bitcoin volatility; a drop in BTC price could severely impact the stock.
https://www.ibtimes.co.uk/michael-saylor-strategy-buys-1550-bitcoins-1801669
Days after Michael Saylor's Strategy offloaded 32 BTC at $77,135 per token, the largest corporate BTC holder in the world disclosed in a Monday 8-K filing with the US Securities and Exchange Commission (SEC) that it purchased 1,550 Bitcoins at an average price of $65,332 per token between 1 June and 7 June.
The purchases were funded using proceeds from at-the-market sales of its class A common stock. Last week, the company sold over 1.4 million class A shares for around $181 million in proceeds.
Strategy also boosted its USD reserves to $1 billion as of 7 June, up from $900 million as of 31 May.
Well, it's actually far worse since they are not buying BTC with cash. They're buying it with MSTR sales, and MSTR fell even harder than BTC.
They sold BTC when it was 482 MSTR, and rebought when it was 510 MSTR.
If anything, they should be selling more BTC because its price ratio to MSTR is the highest it's been for years, and because they just burned through 70% of their cash reserves last month paying off 1 out of 6 of their convertible debt loans.
Microstrategy used up 70% of their cash reserves last month, and they only have enough to pay for 6 months of STRC dividends.
So of course everyone in the community is worried they will sell more.
Your math skills are gone because youre in physics now?
... uhh wut lol what kind of physicist ignores math
Yeah. That's why you don't trust AI. This is a hallucination.
The actual number of active addresses is about 100k unique addresses per day.
https://bitinfocharts.com/comparison/bitcoin-activeaddresses.html
Basically, Bitcoin can allow 0.005% of the global population to make one transaction per day. (Or allow 1% of the population to make one Tx per 230 days)
Can I somehow short this guy's research?
Uhhh. Technically impossible since Bitcoin is a slow-ass network that only supports about 400k transactions daily.
Sorry but all the stories for the “potential” of crypto has all but run their course. It’s simply not interesting anymore.
Just tells me Btc is a shit asset
Yes.
If 4 year cycle for bitcoing was true, then its pattern would be predictable, everyone would buy during the predictable low part of the cycle, and then sell during the predictable high part of the cycle.
One of two can be true but not both:
1 - Bitcoin is predictable, rigid asset which is heavily manipulated by halvings and other factors that form a predicatable 4 year cycle.
2 - Bitcoin is a freeflowing asset with no influence from outside.
The whole 4 year thing started floating around recently as a 'copium' mechanism, basically cherry picking data, looking for patterns to reinforce an idea. Trying to make up a correlation/causation where there is none.
Saylor has just been the biggest bull out there for years, and had claimed since 2022 that he would never sell bitcoin.
So it wasn't control, but the "signal" that his small sale of coins sent to the market. AKA "If the biggest bull is selling, maybe I should too". Personally, I think he did it as a test, knowing he would buy back in anyway. Eventually, Strategy probably has to trade BTC on sheet to generate alpha, at least during consoladation periods.
This says more like 100k: https://bitinfocharts.com/comparison/bitcoin-activeaddresses.html
I’ve seen some sites saying up to 600k daily but nothing that says a million.
How is it market manipulation?
good point, well man, foreign bank accounts are still fiat covered by trust in goverment, gold is only viable when you hold it phisicaly and no one can take it from you otherwise it is just line on the graph.
you still see bitcoin as investment to get more fiat, when you look at it from the other side you still hold the same amount of bitcoin, in the begining of recesion everything is liquidity but people at those time want to hold things that cant be printed like gold or \bitcoin\
\*most people still see bitcoin as investment so it serves as liquidity for them in problems, there is more and more people tho that see it as potential future money (including me) which stack satoshi during those times. As bitcoin get biger and more people hold long term (or even pay with it), volatility will drop over time.
also its inprintability is good for us normies considering games theory, if states cant print their curency they need to be financialy responsible which would make wars a realy rate and much shorter
deflation money (loosing walets and higher demand from growing population) is not good just for this but it also makes overconsumering a lot more financialy iresponsible, sice you are motivated to buy just things you need and make sense for your life (not 60 pairs of shoes).
current system is on inflation is just way to rob poor people buing power of their savings because wealthy have money parked in actives like companies or houses that just racs up nominal value with inflation.
Saylor selling 32 Bitcoin did absolutely nothing to the Bitcoin market. Half a million Bitcoin trade hands everyday. This guys is just pulling things out of his ass
It did. Not because of the trade value, but because of who was selling.
When one of the largest holders of BTC who has actively said 'ill never sell' starts to sell -- even if just a little bit -- all of the other holders begin to question and wonder 'maybe I should sell too' because in the end BTC is mostly just a game of hot potato... and when the biggest holder shows signs of selling despite their adamant statements they never will, that is a scary prospect for anyone holding BTC.
Pretty genius really. If you believe in the concept.
Not sure we have enough historical data to see if that holds moving forward - it's not immune for a bubble
The price movement has been following an adoption S curve with gartner hype cycles superimposed every four years. Past performance and all that, but to ignore it when discussing price correlations is foolish
Yeah that’s my view too. This wasn’t to judge people - I openly said I don’t understand it, not that it’s wrong. But knowing how much there is in the world to see and do, and how little time we have, the idea of (just for example) voluntarily chasing business goals and staying in the corporate world when you’re already unimaginably wealthy is just unfathomable to me.
But then life would be boring if we all wanted the same thing I guess.
i belive so it is not right now,
buying shares is cheaper way to bitcoin exposure than buying bitcoin itself then, thats why i put 3% of portfolio in it
it is gambling as hell without dispute, it would either 5x in bullmarket or i will lose my money, neither will affect me financialy
it is a lot safer to buy bitcoin itself, even saylor said it
i belive so it is not right now, but they benefited from it for a long time and most probably will again in the future cycles
buying shares is cheaper way to bitcoin exposure than buying bitcoin itself then, thats why i put 3% of portfolio in it
it is gambling as hell without dispute, it would either 5x in bullmarket or i will lose my money, neither will affect me financialy
it is a lot safer to buy bitcoin itself, even saylor said it