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Who are the investors backing Michael Saylor’s big play into Bitcoin? And how did he convince them?
1 / A thread
1 / A thread
2/ Russell Investment is the 8th largest shareholder in MicroStrategy (~2%). They’ve
their position 70%+. They’ve bullishly blogged on BTC since 2018 with quotes like...
their position 70%+. They’ve bullishly blogged on BTC since 2018 with quotes like...
3/ “While many are questioning Bitcoin’s foundations, perhaps even more importantly, Bitcoin is questioning the foundations of the central banks.” https://russellinvestments.com/au/blog/bitcoin-questioning-the-foundations
4/ Renaissance Tech is the 10th largest holder. They have 4x’d their position since June...the same time they got internal approval to trade BTC futures.
Its also around when MSTR publicly said that they were considering alt. assets. RenTech knew BTC was on the table and gave
Its also around when MSTR publicly said that they were considering alt. assets. RenTech knew BTC was on the table and gave
5/ My personal fave? The Citron Fund
. They were publicly
-ish on BTC for *3 years* before reversing their position, saying MSTR was the best BTC exposure available on the stock market today...
. They were publicly-ish on BTC for *3 years* before reversing their position, saying MSTR was the best BTC exposure available on the stock market today...
6/ Citron bought up shares in MSTR and released their investment thesis valuing them at $700/share. It is ~145% increase from the current price of $286. https://citronresearch.com/wp-content/uploads/2020/11/MicroStrategy-The-Best-Way-To-Own-Bitcoin.pdf?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link
bought up shares in MSTR and released their investment thesis valuing them at $700/share. It is ~145% increase from the current price of $286. https://citronresearch.com/wp-content/uploads/2020/11/MicroStrategy-The-Best-Way-To-Own-Bitcoin.pdf?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link
7/ BlackRock has 
their position by ~5%, but remain the largest overall investor (15%). They’re also the world’s largest asset manager, managing $8TN. Their Chief Investment Officer said 2 weeks ago “BTC is here to stay.” Their CEO went further saying that BTC could replace gold
their position by ~5%, but remain the largest overall investor (15%). They’re also the world’s largest asset manager, managing $8TN. Their Chief Investment Officer said 2 weeks ago “BTC is here to stay.” Their CEO went further saying that BTC could replace gold
8/ Saylor said it was a ~6 month process for approval for the move into Bitcoin.
6 months. To allocate $250M into Bitcoin.
At a min, I would have expected 12 months.
So how did Saylor convince the board and support from shareholders?...
6 months. To allocate $250M into Bitcoin.
At a min, I would have expected 12 months.
So how did Saylor convince the board and support from shareholders?...
9/ #1 They were already open to it. Russell had been blogging since ‘18, RenTech had documented interest in BTC trading. The fast timeline implies others were also curious. They don’t want to miss the boat and the fact that BTC has survived 12yrs shows its “not just a fad”
10/ #2 Education on Bitcoin. Saylor has stated this and it shows. MSTR has an entire section of their website dedicated to BTC materials.
And that education continues. In the Investor Analyst Day last month, Saylor answered 25 questions during Q&A. 10 of them were BTC centered.
And that education continues. In the Investor Analyst Day last month, Saylor answered 25 questions during Q&A. 10 of them were BTC centered.
11/ #3 Lack of other options. Many investment funds have governing charters which don’t allow investing in crypto. For others, they’ve cited concern over custody/security.
Basically every fund can invest in stocks, but w/ GBTC you pay a premium. MSTR is the best of both worlds
Basically every fund can invest in stocks, but w/ GBTC you pay a premium. MSTR is the best of both worlds
12/ / TL;DR: BlackRock, Russell and RenTech all likely gave their blessing in the switch to Bitcoin. If MSTR proves a success, they could use Saylor's playbook to advocate for BTC at their other portfolio companies too
