MSTR - MicroStrategy Incorporated

[Simba]

If you don't know already, Michael Saylor the CEO of MSTR, has been buying bitcoin hand over fist.

 

MSTR recently issued a $1.05B convertible note at 0% coupon, with "net proceeds from the sale of the notes to acquire additional bitcoin. "

 

As of January 27, 2021, at 4:00 p.m. EST, MicroStrategy had 70,784 bitcoins.

 

Let's see how far MSTR goes.

 

1yr return +373% (Feb 23)

 

This is either going to end badly or end up being an amazing trade!

 

8) (no position) - also this really is a sign of the times..

 

 

[Xerxes]

Already a thread on this:

 

https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/mstr/msg451079/#msg451079

[valuepickr]

Already a thread on this:

 

https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/mstr/msg451079/#msg451079

 

If you think that bitcoin is going to perform very well , then I think better strategy would be directly invest in bitcoin rather then investing in MSTR

[deadspace]

Already a thread on this:

 

https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/mstr/msg451079/#msg451079

 

If you think that bitcoin is going to perform very well , then I think better strategy would be directly invest in bitcoin rather then investing in MSTR

 

Yeah but try holding directly invested bitcoin in a TFSA

[Pauly]

Already a thread on this:

 

https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/mstr/msg451079/#msg451079

 

If you think that bitcoin is going to perform very well , then I think better strategy would be directly invest in bitcoin rather then investing in MSTR

 

Yeah but try holding directly invested bitcoin in a TFSA

 

https://www.purposeinvest.com/funds/purpose-bitcoin-etf

 

Wouldn't this do the trick?

 

 

[formthirteen]

What's Saylor's strategy, offset declining revenue with Bitcoin profits?

 

When the company's stock plunged, Saylor lost $6 billion on paper, since he owned 43.5 million MicroStrategy shares, representing about 56 percent of the total shares outstanding.

 

Last July, the company, led by the 35-year-old Michael Saylor, moved beyond data mining software by launching a new business unit called Strategy.com. The aim of Strategy.com is to deliver highly personalized, timely information to people through e-mail, telephone and wireless devices. As an example, people could be alerted about traffic jams, stock price moves, or changes in weather patterns.

 

https://money.cnn.com/2000/04/13/technology/microstrategy/

 

 

MicroStrategy Chief Executive Officer Michael Saylor, Chief Operating Officer Sanju Bansal, and former chief financial officer Mark Lynch each will pay a $350,000 fine as part of their consent decrees with the SEC.

 

The government agency launched an investigation into the Vienna, Va.-based company in April, after an earnings restatement caused its stock to plunge. On March 20, MicroStrategy said it would restate its operating results for the past two years to comply with new federal accounting guidelines on reporting revenue, fueling a stock drop of 62 percent.

 

https://money.cnn.com/2000/12/14/technology/microstrategy/index.htm

 

They still own the strategy.com domain:

https://strategy.com

[Xerxes]

is there something wrong in sticking with the original thread, now that you know there is an actual MSTR thread.

 

Saylor cannot offset declining revenues with bitcoin profit, but he can offset the excitement with BTC.

In any case, as an asset, any realized/unrealized gains wouldn't be passing through MSTR' income statement and if anything it will go through its comprehensive income and hit the BV (if at all). Therefore, the income statement would remain solely based on its operating business which is that of software,