Another day and another major Bitcoin purchase for MicroStrategy and Michael Saylor

If having over $2 billion worth of bitcoin on their balance sheet wasn't enough, they decided to add another $10 million more.

In a filing with the SEC today, it was revealed that MSTR bought $10 million worth of bitcoin at an average price of $33,810 per coin.

The SEC filing can be seen here:

(Source: https://www.sec.gov/ix?doc=/Archives/edgar/data/1050446/000119312521025369/d124926d8k.htm)

This $10 million purchase was the second purchase of the same size in the last couple weeks, both having a cost average over $30k.

The last time MSTR was buying bitcoin, the price more than doubled short afterwards.

This filing of the BTC purchase comes a day before MSTR and Saylor are set to present their ideas about bitcoin to thousands of corporations and executives at their virtual Bitcoin for Corporations Event set to kick off tomorrow.

https://hive.blog/hive-167922/@jrcornel/the-bitcoin-for-corporations-event-starts-in-a-couple-days-and-guggenheim-blackrock-can-start-participating-in-bitcoin-today

Crazy or Crazy Like a Fox?

While some said their previous purchase of $10 million was a desperation move from a company and man that are too over-extended trying to prop up the price.

I see it as the exact opposite of that.

To me, it does indeed look like a desperation move, but the desperation is about getting as much money as they possibly can into bitcoin right now before it makes the next leg up.

And as we know from reading several of my posts on the matter, after this 30% correction, the next leg up will be at least 100% higher than the lows, which puts us up around $60k minimum before the next 30% correction.

More on that can be seen here:

https://hive.blog/hive-167922/@jrcornel/on-average-bitcoin-surges-153-after-correcting-by-30-during-the-last-bull-market

The neat thing about the strategy that MSTR is incorporating is that as their company generates dollars, those dollars immediately go into buying more bitcoin.

From the man (CEO Michael Saylor) himself:

"MSTR plans to progressively acquire more bitcoin at prices that probably keep going up."

(Source: https://www.coindesk.com/microstrategy-buys-more-bitcoin-february-2021)

It's turning into a nice sink of sorts for bitcoin, a source of continued demand and buying pressure.

And, as I mentioned above, the last time MSTR was buying around a certain price level the price more than doubled in the weeks following.

I fully expect the same thing to happen yet again here.

And remember if the company doesn't generate enough cash, or if the price of bitcoin were to drop low enough, MSTR can always just do a convertible debt offering and come with half a billion dollars to buy more like they did the last time. :)

Yea the game is rigged to the upside at this point, hopefully you are on the right side!

Stay informed my friends.

-Doc

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