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This company apparently was/is quite cash rich. It bought back $250m of its own shares and then bought 250m of BTC... wow. Does anyone have the wallet address? or pinpoint it?
If most assets are still rising and breaking all time highs in a downturn economy what it really means is that the dollar is falling in a race to the bottom with all other fiat currencies. People avoid holding money by buying stocks and housing, not because of natural P/E ratio but forced by the continuously devaluation of cash. What "money" do you expect businesses want to hold in this situation?
The entire purpose of QE and similar schemes is to reduce the value of the fiat currency relative to other things, in order to encourage people to swap their dollars for things (increasing consumption) or financial assets (increasing investment, at least indirectly).
The problem is that the investment doesn't seem to be happening, partly because of expectations of a future crash. By this point I suspect this has more to do with real-world factors (climate change is a serious obstacle to long-term economic growth) than government policy.
This company apparently was/is quite cash rich. It bought back $250m of its own shares and then bought 250m of BTC... wow. Does anyone have the wallet address? or pinpoint it?
There is high chance that the 21K+ bitcoins are spread out over multiple wallets. Most likely hardware wallets, spread out over multiple geographical locations. I also don't see what the benefit would be for MicroStrategy to publish a csv files with all their wallet addresses.
Here is a list of 20 companies buying Bitcoin recently: https://www.forbes.com/sites/michaeldelcastillo/2020/08/06/v... Keep in mind that 250 mil, and 250 mil times 20 is a drop in the $214.4 billion bitcoin market cap and doesn't move anything. Just a sign of mild interest. Furthermore, Grayscale just ran a crypto ad campaign on large TV networks such as Fox.
The daily trade volume is mostly people passing bitcoin to each other. If a whale like MicroStrategy is actually taking them out of an exchange, things will dry up quickly.
My guess the bitcoins were bought over a period of at least couple weeks, and probably using OTC trades as well.
Earlier quoted context omitted.
There is high chance that the 21K+ bitcoins are spread out over multiple wallets. Most likely hardware wallets, spread out over multiple geographical locations. I also don't see what the benefit would be for MicroStrategy to publish a csv files with all their wallet addresses.
Even more likely a custodian like Coinbase or Gemini already has the funds in cold storage, and a sale occurred OTC which simply modified who owned how much of the BTC.
https://news.ycombinator.com/item?id=18640755
Interesting to re-read this (and other) threads now that BTC is one of the best performing asset classes in 2020...
"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…
So I can imagine that this will turn into a big profit for them but the arguments are hilariously weak.
Granted they will get a lot of PR out of it.
"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…
It seems to be a common sentiment but the general business people can't completely back it with macro data so everyone just brace for impact... I assume these folks have actual intel to take this big decision.
Unfortunately, my experience working with MSTR has been that the expectation of competence isn't really born out in actual competence at a technical level.
I suppose you can only hope that at a management level it's a different story. They certainly seem to sell their product very well.
Here is a list of 20 companies buying Bitcoin recently: https://www.forbes.com/sites/michaeldelcastillo/2020/08/06/v... Keep in mind that 250 mil, and 250 mil times 20 is a drop in the $214.4 billion bitcoin market cap and doesn't move anything. Just a sign of mild interest. Furthermore, Grayscale just ran a crypto ad campaign on large TV networks such as Fox.