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The Pros and Cons of MSTR and Bitcoin Daddy

Web3 Daily

TL;DR

  • MicroStrategy has bought another 12,333 BTC for approximately $347M USD in cash according to ​yesterday's filing​.

  • On one hand, any entity that owns this much BTC can be dangerous for the market as a whole - if they were to suddenly decide that they no longer believed in BTC, they'd have the ability to flood the market and temporarily tank the Bitcoin price.

  • On the other hand, MSTR is not only single-handedly increasing the amount of institutional investment by billions, they've also become a sort of proxy way for individuals to invest in BTC, without investing in BTC.

Full Story

It's been a while since we discussed MicroStrategy (MSTR) and ​Michael Saylor​ (aka 'Bitcoin Daddy').

ICYMI, ol' Mick is the founder of MSTR - and a huge BTC maxi.

(He believes BTC - and only BTC - will completely change the financial system).

Since we last discussed MSTR, two big things have happened:

  1. The company has bought another 12,333 BTC for approximately $347M USD in cash according to ​yesterday's filing​.

  2. The value of BTC has risen above MSTR's 'basis' (aka their break-even point) of $29,670.

Here's why this is important:

When the value of BTC was down at ~$16,500, there was talk that MSTR would collapse if it went down even just a few k more (below $13k).

They're a public company and were seen by many as making a reckless investment.

The value of BTC is up ~80% since the start of 2023 and MSTR's stock price is up almost 125% YTD.

On one hand, any entity that owns this much BTC can be dangerous for the market as a whole - if they were to suddenly decide that they no longer believed in BTC, they'd have the ability to flood the market and temporarily tank the Bitcoin price.

On the other hand, you know all of that talk about BTC ETF's at the moment?

MSTR is not only single-handedly increasing the amount of institutional investment by billions, they've also become a sort of proxy way for individuals to invest in BTC, without investing in BTC.

There are pros and cons of other companies following in MSTR's footsteps.

Now you know :)