MSTR's Saylor has been the king of Bitcoin lately after the perfectly timed purchases earlier this year.
Now he is adding to the "prop bet", investing another $50 mill. As he tweeted on Friday:
"MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash…"
The total value is now approx. 40824 bitcoins X 19050, $777 mn. The last batch is actually down almost $1mn, let's see how that develops.
We outlined our MSTR "arbitrage" logic earlier in November suggesting MSTR was lagging Bitcoin. The stock was trading at 188 back then, now at 328. The big "arbitrage" trade is over, but we are watching the two closely as MSTR is becoming more and more a Bitcoin play, and that one moves both ways…
As MSTR writes on their site:
"Bitcoin is not a currency, nor is it a payment network. It is a bank in cyberspace, run by incorruptible software, offering a global, affordable, simple, & secure savings account to billions of people that don’t have the option or desire to run their own hedge fund."
So far MSTR has acted just like you should when you trade, add to trades that work, but you have to master managing risk, ie what is your plan of action if the trade goes further up, or starts moving lower?
MSTR market cap since our early November post is up approx. $1.3bn, while MSTR's BTC position has increased by some $250 mn since early November…
One thing is sure, watch these two play out going forward….