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  • #31
    Ok...I have stayed silent on this one...but I will only add one post on this.

    There are many components to what Saylor is doing. He is the longest standing CEO of a Billion dollar publicly traded company, which he also founded. That is not an unimportant aspect of this. He is also literally a rocket scientist who graduated from MIT and has 30 years in the tech space. So to say he is highly successful, highly educated in this area, and also highly intelligent is a bit of an understatement.

    Now on to MSTR and what he is doing with it. He developed a profitable billion dollar company with profits in the approx 30 Million per year range. It took him about 30 years to build up a 500 million dollar treasury reserve. He then converted that reserve into BTC. In 3-4 months that reserve has doubled its unrealized value. So far a pretty darn good move IMO. Prior to converting to BTC he had to offer shareholders a buyout of their stock. He had 1 major taker and the others all stayed on board with the move. While his treasury reserve has doubled, the price of MSTR stock has also risen from 120 to 290. More than doubling the market cap of his company. Also seems to be working out pretty well for him. In short, he is up about 1.6 Billion since he started converting his treasury reserve in June of 2020.

    The latest is (basic speak here) he took out a loan at 0.75% for 650 million which is convertible to shares in MSTR and he is buying BTC with it to further his investment in BTC. This is essentially a speculative attack on the US dollar. The US treasury and the bond market should be shuttering at this move. If this works for him, he could easily rinse and repeat this multiple times over (as could every other profitable company). This also offers him the opportunity to buy back his company and take if off the public market if he ever desired to do so.

    Now I'm not a big fan of using leverage to speculate (mostly because I am not smart enough and have too much risk aversion). But even if it fails for him, his company is still a profitable company and will not cease to exist. It would be worth far less but still a very successful company. (A company that generates 30M in profits every year is pretty successful IMO)

    So you can question his decision making process all you want. And you may prove to be right. But, given his track record, my bet would be on him being right.

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    • #32
      My spouse was adamant about buying Apple when she got her first phone and the kids were so enamored with Apple PCs.
      Bought her a limited amount to appease.
      By far the most significant percentage gain.

      My question to her now is was it the Apple PC or the phone? Blackberry dominated the business phone market at the time and Apple PC’s business market share was minuscule.
      Lucky to cash that fish.

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      • #33
        Originally posted by NapoleanDynamite View Post
        The latest is (basic speak here) he took out a loan at 0.75% for 650 million which is convertible to shares in MSTR and he is buying BTC with it to further his investment in BTC.
        I don’t think we yet know this to be true.

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        • #34
          Originally posted by jacoavlu View Post

          I don’t think we yet know this to be true.
          You are right, until the company announces they have officially bought the shares we don't know that they will. But in their public announcement they specifically stated that they plan to buy BTC with the 650 million. So yes, they could be lying or they may not complete the full purchase. But that is what the public announcement stated.

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          • #35
            Originally posted by jacoavlu View Post

            I don’t think we yet know this to be true.
            Just announced officially...They finished their buy of BTC with this additional $650 million. Average buy price was $21,925. MSTR now has 70,470 BTC on their ledger. Average price of all BTC bought is $15,964.

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            • #36
              Originally posted by NapoleanDynamite View Post

              Just announced officially...They finished their buy of BTC with this additional $650 million. Average buy price was $21,925. MSTR now has 70,470 BTC on their ledger. Average price of all BTC bought is $15,964.
              Yup was about to post this today also. Say what you want about Bitcoin, but this dude has massive cojones. Props.

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              • #37
                He will die as a LEGEND. It is yet to be determined if he will die an incredibly wealthy legend, or an incredibly legendary lesson in failure.

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                • #38
                  Originally posted by jacoavlu View Post

                  I don’t think we yet know this to be true.
                  Saylor has been giving minor details about how he went about this 650 million dollar purchase. He had an algorithm completing either $1,000 buys or $2,000 buys every second for 6 days. That is somewhere between 325,000 and 650,000 micro-buys of BTC. They did it in this fashion so as not to cause a massive price move.

                  He actually stated that the couple big price moves while they were buying was due to outside buyers (of course his micro-buys had something to do with availability). If nothing else this is very interesting and helps create a playbook for future institutional buyers that want to move large amounts of money in or out without dramatically affecting the price. From purely an academic perspective this is awesome stuff to learn.

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                  • #39
                    Originally posted by NapoleanDynamite View Post

                    Saylor has been giving minor details about how he went about this 650 million dollar purchase. He had an algorithm completing either $1,000 buys or $2,000 buys every second for 6 days. That is somewhere between 325,000 and 650,000 micro-buys of BTC. They did it in this fashion so as not to cause a massive price move.

                    He actually stated that the couple big price moves while they were buying was due to outside buyers (of course his micro-buys had something to do with availability). If nothing else this is very interesting and helps create a playbook for future institutional buyers that want to move large amounts of money in or out without dramatically affecting the price. From purely an academic perspective this is awesome stuff to learn.
                    coinbase handled the first round of MSTR purchases. They wrote a case study on it


                    https://blog.coinbase.com/coinbase-i...i=59f9a58dd3be

                    https://primebroker.coinbase.com/con...y-Dec-2020.pdf

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                    • #40
                      tomorrow will be interesting

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                      • #41
                        Originally posted by jacoavlu View Post
                        tomorrow will be interesting
                        ???

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                        • #42
                          Originally posted by CordMcNally View Post

                          ???
                          TSLA!

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                          • #43
                            Blockchain mining stocks should have an interesting day tomorrow as well. Most days over the past month, I'm seeing 20-30% daily volatility, likely will be 30-50% pops tomorrow after the moonshots of Eth and Btc over the holiday weekend.

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                            • #44
                              Originally posted by CordMcNally View Post

                              ???
                              btc up like 15% since the market closed thursday

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                              • #45
                                no surprise MSTR up about 10%

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