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u/begoodhavefun1 1d ago
He’s truly one of us.
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u/punyadoption779 1d ago
dude bought high sold low and somehow became a legend, that's next level commitment to the strategy
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u/RoyYourWorkingBoy 1d ago
Yep, DCA works. Strategy is up $3 billion.
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u/ALth0r 1d ago
Thats a very tiny amount. Also he was down not a month ago and could get back in the ree really quick since he also buys when it pumps.
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u/TheSkunksMisery 1d ago
...or it could go up and could be in the black forever. You dont know, neither do I.
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u/Drfilthymcnasty 1d ago
Well yeah, it’s one thing to do it with your own money, but he is using other peoples. Absolute legend.
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u/chente08 1d ago
became a legend for the amount of BTC he bought, not for his earnings lmao
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u/Subject-Chest-8343 1d ago
Well, his company went to irrelevance to a 50B$ comapny in 6 years, and quite possibly a trillion dollar company within the next 6... I'd call that at least a legend in the making lol. He also has a substantial personal bitcoin stack.
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u/shpeucher 1d ago
Ok and I’m buying here too
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u/CannonBurt 17h ago
I think it will keep consolidating around $80K. Unless we get a major bullish catalyst, I don’t see a strong breakout happening. Otherwise, a pullback is still likely.
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u/jeffdeansalem 1d ago
Perhaps before you post this you did some research on why Strategy is buying at the top. Saylor and the Strategy team are no fools.
You look so foolish posting this without understanding MSTR
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u/Narf234 1d ago
Not looking for a “gotcha” comment. Could you explain why Strategy is doing what they’re doing?
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u/Alfador8 1d ago
They're using investor capital to buy bitcoin. Investors are more willing to throw money at him during peaks, and less likely during troughs. It's just market psychology.
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u/jeffdeansalem 1d ago edited 1d ago
Strategy can issue more shares when MSTR is trading at a premium to the value of its BTC holdings, basically when it’s above mNAV.
When BTC goes up, MSTR’s trading volume usually increases as well. Strategy can use that liquidity to tap its at-the-market (ATM) offering and issue shares based on the trading activity that day.
For example, over the last two weeks, MSTR issued around 15 million shares into the market at the prevailing prices. That’s only a fraction of the total trading volume, so the additional shares were easily absorbed without moving the price much and shouldn’t have a meaningful impact on the market price.
The important part is that they can really take advantage of this when MSTR is trading above mNAV and there’s high trading volume. And that typically happens when BTC is rallying.
So the higher BTC goes → the more MSTR volume/liquidity → the more efficiently Strategy can raise capital through the ATM.
For the selling at low prices, this is just for tax loss harvesting
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u/Weak_Sprinkles_9937 21h ago
So, he is diluting the shares of the exsisting investors. This stratergy only works if btc keeps going up, but I guess, it probably will.
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u/jeffdeansalem 13h ago
Its exactly the thesis! If Saylor is right, it will be the ultimate YOLO. If his wrong, then he will be remembered as the biggest blunder is financial investment history.
But all the math points to that his right
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u/Weak_Sprinkles_9937 3h ago
Yeah, I think bitcoin will go up in the long term as it is going to get scarce and scarce.
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u/fireballx777 14h ago
He's diluting current investors in the traditional sense, in terms of percent of market cap owned. But it's accretive for investors in terms of amount of Bitcoin owned.
To use super simplified numbers, let's say Strategy owns Bitcoin worth $100k, and there are 100 shares of MSTR outstanding, of which you own 1 share. Each share represents 1/100 ownership of the company. Ignoring any other value of Strategy, just based on the value of the underlying Bitcoin, each share should be worth $1k. Now let's say the shares are trading at a 20% premium, at $1200 each. Saylor issues 100 new shares and raises $120,000, and then uses that to buy Bitcoin. As a shareholder, you have been diluted in the traditional sense, in that you now own 1/200 of MSTR instead of 1/100. But you own 1/200 of $220,000 worth of Bitcoin, which should be worth $1,100. You own a smaller slice, but the pie got bigger.
This strategy only works as long as MSTR is trading at a premium. You could do a similar but opposite strategy if/when it's trading at a discount -- sell Bitcoin to buyback shares. This would also increase remaining shareholders' portion of Bitcoin nominally owned. I think Saylor plans to avoid this due to the optics of selling Bitcoin unnecessarily.
This is obviously also very oversimplified. Theoretically you could do this kind of accretive selling/buying with any amount of premium in the share price vs underlying Bitcoin. In reality there's friction involved in both buying and selling, large moves in either direction cause unfavorable price movement, and there is some time delay between raising capital and being able to spend it. So in reality, it's only worth doing all this if the premium is significant enough to outweigh the risks. You can watch how the premium fluctuates over time: https://charts.bitbo.io/mstr-nav-premium/. At the height of MSTR's price towards the end of 2024, it was close to a 200% premium.
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u/Weak_Sprinkles_9937 3h ago
But, considering this is being done, why would investors price MSTR at a premium, knowing that saylor will sell MSTR to buy bitcoin. Besides, how is it even beneficial at a scale, the benefit seems to be very marginal, considering he is diluting the investor share.
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u/UndeadDog 1d ago
You don’t understand. He doesn’t care when he buys or sells. It will be meaningless when Bitcoin reaches 1 million.
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u/brianrob41787 1d ago
Zoom out - they’re 5 billion in the money
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u/_Stylite 17h ago
And they can be back in the red after one bad day- he raised his average to $75.4K
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u/Strange-Term-4168 1d ago
But the cash comes from selling shares of their stock which correlates with price of bitcoin….
So if they sell 100 shares to buy 1 bitcoin at $60,000, what difference does it make if they wait and sell 100 shares for 1 bitcoin at $75,000?
The only thing that matters is mnav and increasing btc per share.
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u/gigasawblade 20h ago
Btc per share is down from 220k to 190 too.
They sold BTC at the lowest point to keep 6B of cash. That massive pile of USD they collected didn't grow when bitcoin went back to 75
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u/LORDRAJA1000 1d ago
yall clowning him, but you probably would’ve done the same thing 😂 hindsight bias is a bitch
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u/MotanulScotishFold 21h ago
Meanwhile Saylor bought lower than that to sell there and buying higher to sell later at even higher.
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u/ObjectiveJackfruit35 1d ago edited 1d ago
OP is someone who tries to time the market rather than DCA and it embarrassingly shows lol
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u/RustOceanX 1d ago
I want to be honest with you. If people like you all understood why Strategy buy at higher prices, then people like me, who already know this, wouldn’t be able to accumulate MSTR at such a low price. Asymmetric knowledge determines whether an investment makes you wealthy or whether you’ll be among the 99% who only wake up when, after x years, the price trend reaches a plateau, and while others have already made 10–100x their investment, you can only hope to make 2–3x over years. I’m not saying this to hurt you, but that’s the harsh reality.
We are all constantly “victims” of a lack of knowledge. Because you can never understand everything or know everything. At some point, we all realize that certain groups have become rich because they knew certain things very early on. So the question is whether you'll soon understand how to evaluate Strategy, or whether you're one of those who turn away, confused and skeptical.
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u/Mikfinity_ 12h ago
I've only kept a very limited allocation towards MSTR (5% of my crypto, 1% total portfolio) but this thread really changed my perspective on it. Especially your comment.
Theoretically, if you had some cash on hand right now, would you start deploying now toward MSTR or wait until Oct-Nov to see if the ''bull-trap'' thesis does play out - Giving opportunity for BIG buying.
I'm loving the mNAV and fear right now.
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u/Full-Atmosphere-4818 1d ago
Saylor began buying Bitcoin almost exactly 6 years ago. His average purchase price is $75,412 and the current price is $78,662. Evidence shows he tends to buy less when the price is low and mostly when it is high. The hard fact is he would have done better putting the money in t-bills in this period and almost every other asset as well. Six years is a long time. I like Saylor for what he has done to popularize Bitcoin but overall he has not done that well.
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u/akjrvkrv 1d ago
To be fair, Bitcoin is in a cycle low, six years is not much at all when you take the four year cycle and past performance into account.
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u/highKickin 22h ago
What are you talking about? People gave him billions and he put almost everything into btc. He is massively leveraged and carries very little risk. If Bitcoin goes up as predicted, this will be one of the best financial decisions ever. The best part, he has to pay for this in the future. So you could say he will buy btc in the future for prices from the past.
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u/schmelf 1d ago
They’re method for funding themselves lends itself to this. When BTC appreciates, their mNAV expands and they can sell MSTR shares for Bitcoin. Think of it like this, if BTC runs and their mNAV goes from 1x to 1.5X, that means they before the move one dollar of MSTR stock sold would buy $1 of BTC. When it’s 1.5X they can sell $1 of MSTR stock and buy $1.5 of Bitcoin. So they are in a position where they will usually buy high because the premium usually expands as price rises and contracts as prices fall.
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u/Yesthisisdogmeow 1d ago
It’s almost like there was no one buying STRC but after that pump people are back buying. With newly generated funds, instead of dipping into reserves are able to make new buys.
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u/Medical-Junket1576 1d ago
Strategy had to defend STRC which forced them to pivot, once STRC is back to par and maintains it they can resume big purchases of BTC or pay down convertible debt
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u/PuzzleheadedGain9813 1d ago
He buys high sells low makes sense to me I do the same thing guess you can say I’m strategic
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u/MiceAreTiny 1d ago
Saylor has nothing to do with bitcoin. His creative accounting is borderline fraud. Buy high, sell low is not a sustainable strategy. The value can not go up if the underlying value does not. Somewhere, people are losing. Or will lose when the paper bitcoin or dollar is not there.
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u/TruthPuzzleheaded814 23h ago
Hoi allemaal ik ben nieuw met Bitcoin mochten jullie tips hebben hoor ik het graag.
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u/Ok_Independence3695 22h ago
Strategy has its own "STRATEGY" for buying and selling his bitcoin, but we dont have strategy lol😅
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u/zenethics 18h ago
They literally can't buy it otherwise. They don't buy "when price good" they buy when their stock has inflows.
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u/Tall-Ad1293 18h ago
Reddit sees “sold at 64k, bought at 78k” and immediately goes full portfolio manager 😂
MSTR isn’t a swing trader. The whole game is raising capital when the market gives them favorable terms and turning that into more BTC per share.
Roast the structure if BTC/share stops growing. “He didn’t buy the exact bottom” is NPC analysis.
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u/Latter-Weather5368 16h ago
These minute differences in Bitcoin price of $10-20k will make such a negligible difference to anything when Bitcoin is above $5m a coin - Strategy are playing a 30+ year game not trading from year to year
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u/Natural-Contact-3875 8h ago
Michael Saylor’s last publicly disclosed personal Bitcoin position is 17,732 BTC, separate from Strategy’s corporate holdings, at an average purchase price: $9,882 per BTC.
You have 800 USDT stfu
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u/Clean-Gear-1386 8h ago
They didn’t have capital and their bitcoin positions were in the hole for billions when they had to sell. AI says there average price per BTC is 75,412.
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u/Grouchy_Journalist86 6h ago
I just hate that they call it dividends when there’s no income being generated. It’s not a company to produce dividends, it’s a bitcoin treasury company.
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u/ScoreOk5355 1d ago
seems like the pressure got to them and they couldn't turn off the news and just chill for a few months
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u/Objective_Can_569 1d ago
Selling low and buying high is the strategy. They’re going to be the biggest company in the world doing this
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u/Subject-Chest-8343 1d ago
Well, selling low isn't really the goal, but in a broader sense, the stock being an amplified expression of bitcoin exposure is a feature, not a bug. The derivatives market on MSTR is bigger than that of IBIT, even though the latter has more than 3.5x the market cap. This in turn fuels liquidity on the stock, giving them the ability to raise cash so easily.
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u/omg_its_dan 1d ago edited 1d ago
Meaningless cherry picking. The company’s strategy has enabled them to accumulate 800k+ BTC. They are not a trading firm trying to time their buys/sells, so of course some individual transactions will not be optimal. Long term this doesn’t matter.
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u/rsincognito 1d ago
Your post shows that you know absolutely nothing and I think it’s funny how you publicly made it known to everyone.🤣
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u/unthocks 1d ago
Its called trolling
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u/rsincognito 1d ago
As I look at the picture on my desk of me and Michael Saylor together from 2023. Okay bud. 🤣😂
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u/AgedActor 1d ago
One can afford to do this when they're not buying with their own hard-earned money.
He's diluting stocks out of thin air and using them to make purchases.
I don't blame the guy. He's just taking advantage of a flawed system.
And I'm sure he's got a better strategy, pun intended, for his personal stash of Bitcoin.
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u/Pristine_Ladder_8394 1d ago
Bro he bought it at $10,000, in millions of dollars
What’s your record? 😂
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u/TrueCryptoInvestor 1d ago
Not the first time, probably not the last one either… 😑
Meanwhile, I bought below $7K and just held…
Guess I’m no Saylor… 🙄
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u/Unusual-Arrival-3425 1d ago
You have been holding since 7k and never took profits or added to the original investment?
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u/Naive_Carpenter7321 1d ago
It's almost as if nobody knows 😂
The most beautiful thing about the value of Bitcoin is that it's driven by the people who both do and don't own any. Surely the most democratically valued "thing" in that is has no other use to drive this change. When the people see a pattern, that pattern will disappear by the very nature of humanity trying to capitalise on it.
Long term is where the value lies.
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u/kotb0614 1d ago
as a shareholder i'll be equally happy with (a) $500 mstr next run, or (b) the whole thing blows up in saylor's face...win win
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u/AreaFifty1 1d ago
It’s not dipping back to 59k bro, in fact it’s not even dipping below 76k at this point.
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u/keralaindia 1d ago
Strategy funds its Bitcoin purchases primarily through At-The-Market stock offerings and convertible bond sales. They can only execute trades once that fresh capital is raised and settled. If the capital raise completes when Bitcoin is at $78,000, they deploy it immediately rather than holding cash to wait for a dip back to $59,000.
Also, during market rallies, Strategy’s stock trades at a premium relative to the Bitcoin on its balance sheet. Selling stock at a premium to acquire Bitcoin increases the "BTC per share" for existing shareholders because the financial metric they track is BTC accretion per share—not buying at the absolute lowest price