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.
@jrcornel/bitcoin-tends-to-turn-even-the-staunchest-of-doubters-into-believers
Then they bought another $50 million over $19k.
@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.
@jrcornel/big-news-mstr-selling-usd400-million-in-convertible-notes-to-buy-more-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:
)https://twitter.com/CoinCornerDanny/status/1337013384588521472/photo/1
- CoinCornerDanny
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