Don’t listen to experts who don’t understand anything about Bitcoin.
In early December 2020, Michael J. Saylor announced that MicroStrategy would borrow $550 million to purchase more Bitcoins. MicroStrategy intended to issue 0.75% convertible senior notes to complete the transaction. Interest was to be paid every six months starting in 2021. The maturity date was December 15, 2025, unless MicroStrategy purchases or converts the notes earlier.
This announcement by Michael J. Saylor came as no surprise.
Michael J. Saylor decided to embrace an All-In Bitcoin Strategy
Indeed, since announcing on August 11, 2020, that MicroStrategy was making Bitcoin its primary treasury reserve asset, Michael J. Saylor has stuck to his strategy. He believes in Bitcoin more than anything else now. Michael J. Saylor has even become one of Bitcoin’s greatest ambassadors in just a few months.
His transparency is also remarkable since he had confessed at the end of October 2020 the number of BTC he owned personally. This was following the request of several people on Twitter. Michael J. Saylor responded with this tweet:
While Michael J. Saylor has engaged MicroStrategy in an All-In Bitcoin strategy, he has done the same on a personal level as well.
Before its announcement in early December 2020, MicroStrategy already owned just over 40,000 BTC. However, when you are convinced of Bitcoin’s phenomenal potential for the future, you feel like you can never have enough BTC.
Michael J. Saylor also felt that way. That is why he wanted MicroStrategy to have even more BTC.
Citi downgrades MicroStrategy to Sell
As a result, Citi decided to downgrade MicroStrategy to Sell. Until now, Citi was Neutral on MicroStrategy. Citi analyst Tyler Radke then made it very clear that Michael J. Saylor’s All-In Bitcoin strategy was what led the financial institution to downgrade MicroStrategy’s rating.
Citi analysts did not appreciate a new interview with Michael J. Saylor on Binance’s YouTube channel a few days earlier in which he once again declared his complete confidence in Bitcoin:
“If God designed virtual gold in cyberspace, he would’ve designed Bitcoin. People that know this know that God’s name is Satoshi.”
Tyler Radke said there was growing concern that the company was losing focus on its core business while the CEO was showing a “disproportionate focus on Bitcoin”.
After the release of this Citi analysis, MicroStrategy’s share price fell rapidly by -15%:
The market prefers to follow Michael J. Saylor rather than Citi’s recommendations
Despite Citi’s rating, the market responded more than favorably to MicroStrategy’s senior convertible notes issued, as Michael J. Saylor’s company was able to raise an additional $100 million over the $550 million originally planned.
MicroStrategy was thus able to purchase an additional $650 million worth of BTC on December 21, 2020, as Michael J. Saylor officially published in a tweet:
MicroStrategy now owns 70,470 BTC purchased at an average price of $15,964, for a total of $1.125 billion. As of December 30, 2020, with a Bitcoin price at $28K, the Bitcoins owned by MicroStrategy are now worth $1,973,160,000.
MicroStrategy’s investment in Bitcoin is therefore a 76% increase in value.
It seems that equity market investors are much more discerning than Citi analysts, as MicroStrategy’s share price has been on the rise again in the last couple of weeks. MicroStrategy is up +32% since the bottom price reached after the Citi analyst rating.
Michael J. Saylor is in the same position as all Bitcoiners: that of people who are right before everyone else. This is never easy to live with, but we must continue to move forward until the day when the truth will appear in the eyes of the greatest number of people.
The same people who may have criticized Michael J. Saylor will be the same people who will call him a genius in a few years or even months.
Final thoughts
The big lesson you must learn from this story is that you should not listen to experts when they talk about things they don’t understand. Bitcoin is a new technology, a total paradigm shift. You can’t expect Citi analysts to have a far-sighted view on this subject.
The best thing you can do is to make your own research to build up your own mind. That’s what Michael J. Saylor did, and why he decided to invest more than a billion dollars in BTC in the process.
When you’ve done the same thorough research, you too will end up buying Bitcoin and feeling that you can never have enough of it.
