In August and September, MicroStrategy bought $250 Million worth of BTC and $175 Million worth of BTC, respectively. And at the time, Bitcoin was trading under $11,000. Several weeks ago MicroStrategy announced plans to offer $400 million of convertible bonds in order to buy more of the cryptocurrency. Not only did they raise the full amount, but they raised a total of over $600 million in two days. I thought Michaels timing was great and bought the most recent pivot low near $17,000...I even gave it a name.
Do you remember the twitter conversation Michael and Elon had a week ago? The crypto space and traditional financial media outlets went crazy. Elon was concerned about liquidity, but Michael said he would show Elon his bitcoin playbook.
Come to find out Michael didn't buy near $17,000...that date was December 14th. Michael used the $600 million raised and was buying bitcoin before that dip on December 14th.
Yesterday, we found out that Microstrategy CEO Michael Saylor has bought $650 million worth of Bitcoin since December 11.
Later that day, he appeared on the Funky Crypto podcast, which is co-hosted by MMA fighter Ben Askren. On the podcast, he revealed what it was like to buy so much Bitcoin so quickly.
“Last week I bought $1,000 worth of Bitcoin every second in the evenings and the weekends, I bought $2,000 worth of Bitcoin during the day,” Saylor said on the podcast.
So that 650 million dollar offering at a 0.75% convertible senior notes isn’t due until 2025. Bitcoin is now trading above $26,000. Not only can he pay back the interest now, but that $650 million is now worth over 900 million. This guy is a genius, as this was one of the easiest trades/ideas of this decade and we have 9 more years before the decade is over.
The question becomes, will Michael rise more money to buy more bitcoin...2021 is going to be an interesting year.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.