The biggest winner in the crypto market? MicroStrategy's Diversified Investments

Author: Phyrex, Binance Square creator Source: X (Twitter) @Phyrex_Ni

In fact, it doesn't matter whether it is a bull market, as long as the price rises, the sentiment of the market will rise, maybe from the perspective of the future, the last ten years are the beginning of the bull market. There is still a lot of good news that will start to the market itself in the early hours of this morning, both the Federal Reserve paused interest rate hikes, and Powell's interest rate hike ended,After Powell's speech, the three major stock indexes and stock index futures in the United States rose across the board, and the dollar and U.S. bonds both fell, long-term U.S. bonds have broken five in addition to the 20-year period, and the market's sentiment has changed to that the Federal Reserve will fully enter the trend of pausing interest rate hikes, and is expected to start cutting interest rates in June 2024, and it also has its own benefits for the currency market.

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In fact, from the point of view of time, Powell's speech ended at about 3:30 in the morning, although the operation of the currency market has always been based on the end of the U.S. stocks, but the market's reaction did not have a great reaction after Powell's speech, and the sudden rise after 4 o'clock in the morning, and even from the perspective of trading volume, ** The main trading volume is concentrated just after four o'clock, and this time is exactly the time when MicroStrategy announced its financial report, although many friends think that this is the reason for deliberately making up," How can there be so many reasons for the rise in prices, it is enough for the dog village to pull the plate"**, I can't say that this kind of remarks are wrong, but if you read the reports of the Western media in the early hours of the morning, and read the tweet posted by Michael Saylor at 4:03 in the morning with more than 755,000 views, nearly 2,000 retweets, and the data that the whole network is hotly discussed, you can understand that the information side is the main driver of the rise now.

It is true that from the financial report, MicroStrategy actually lost money in the third quarter, but why can a loss information still drive the entire currency market up, there are two reasons, first of all, MicroStrategy's financial report is as of September 30, 2023, and the closing price of BTC at that time is less than $27,000, although it is a loss compared to MicroStrategy's average position, although it has only been a month, The price of BTC has risen by 30% from $27,000, and MicroStrategy, which costs less than $30,000 on average, has made a profit of more than 15%, and MicroStrategy represents the ultimate buying power of BTC in the market.

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MicroStrategy bought 5,912 BTC for nearly $162 million in the third quarter, and in October after the end of the third quarter, MicroStrategy bought another 155 BTC for $5.3 million, bringing the total open interest to 158,400 BTC at a total cost of $4.69 billion and an average position price of $29,586. **This means that to date, MicroStrategy has made more than $905 million in BTC alone, and more than $5,000 in BTC alone. And of that stock, only 15,886 BTC were purchased through collateral, a little over 10%, and the earliest debt maturity date is in December 2025, with $650 million.

MicroStrategy also intimately marked the halving time of BTC in the second quarter of 2024 in the financial report, which means that the price of BTC will rise again from a historical point of view after the halving, and even if the current price is maintained, MicroStrategy has sufficient ability to repay the debt, but the subtext is that MicroStrategy has no plan to sell BTC before the halving cycle, but it may not be easy to say after the halving cycle. Of course, this may be in 2025. And the rise of BTC will also lead to the rise of MSTR, and MicroStrategy will still sell more shares to buy BTC if MSTR rises. It is estimated that this is also a very rare behavior for investors in the U.S. stock market, hoping that listed companies will sell more stocks.

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In addition to the benefits that BTC itself has brought to MicroStrategy, MicroStrategy has invested in the field of Ai, launched MicroStrategy One, and also entered the automotive field, which can be regarded as hugging Ai's thighs, and these are also what the traditional risk market and the currency market like to see, especially MicroStrategy's announcement that it bought BTC again in October to give the market a new impetus. Unlike its partners in the Chinese field, MicroStrategy has a curse that "causes" the price of BTC to fall whenever the purchase of Bitcoin is announced, and Western investors do not seem to pay too much attention to this issue, but think that MicroStrategy's purchase is a positive for the industry, and from the facts, MicroStrategy may be the biggest winner in the currency market.