MSTR Bitcoin (BTC) Holdings From Hopium to Copium

Michael Saylor:  On August 11, 2020, Microstrategy embarked on its Bitcoin Strategy, acquiring 21,454 bitcoins at an aggregate purchase price of $250 million. Performance since that time of BTC is +83%, $MSTR is +79%, S&P is +16%, Nasdaq is +6%, Gold is -14%, Bonds is -16%, and Silver is -33%.

Community Reaction:

Looks like you forgot to include your average purchasing price. You can do it here. It looks like you cherry picked a single purchase making up 1/7 of MSTR holdings and at 1/3 of the actual average buying price to make things look good?

This is utmost copium.  Where Michael is cherry picking a way to communicate a massive paper loss.

Pointing to the June 29, 2022, tweet:  MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTR

Question: You say your average price is $30,664. So aren’t you down -29%?

Someone felt that history is being repeated again pointing to, “In 1999, MicroStrategy, Saylor’s software firm, admitted to overstating its revenues and erroneously reporting a profit when it actually made a loss. The fiasco shaved over $11 billion off MicroStrategy’s stock market value in a single day.”

So average price per BTC is 11652! That is impressive.  I thought your average price was higher

Is it possible there’s invalidated Bitcoins, or lack of coordination between validator networks that could enable a technical flaw? How aware are you of duplicate coins across different networks? These data servers replicate treasuries. Need to know.

But the last 4 months you are losing $10,050 per Bitcoin and that is for 129,599 BTC. Why be selective to try to say one small buy was good when in total you are losing $1,300,000,000. Tell the bottom line. And that loss is your investor’s $ vs yours.

It’s ok that you’re down a lot (as are many people in crypto), just a bit misleading not to mention the other 100,000 BTC you bought at $30K+ (especially since you seem to imply with your tweet that past performance indicates future expected returns)

The genius of the wording makes it seem like his positions are up. When in reality his BTC position is down.

The reality still is that Bitcoin is the highest paying and the least risky financial instrument if you know when to buy it.