1/ MicroStrategy has 70,470 Bitcoin. Now what?

A thread

2/ Over the past few months, MicroStrategy has made Bitcoin its main treasury reserve asset, as well as raising a $650M convertible note offering in order to buy even more. This has amounted to $1.125B+ in purchases, totaling to 70,470 Bitcoin aka ~0.34% of supply.

3/ Michael Saylor has stated that these 70,470 BTC were purchased at an avg price of $15,964. At a current BTC price of $23K, his holdings are worth $1.6B and he’s already up $496M (69%). So what happens if Bitcoiners aren’t crazy and the price continues to rise?....

4/ BTC price estimates range from a conservative $65K to $1M to even higher. At $65K price, MSTR holdings are $4.6B. At $1M, they’re a staggering $70.5B. To put this in further perspective, MSTR’s current mkt cap is $3.16B. Even in a conservative case, BTC holdings crush this

5/ So what do you do when the asset you’re holding could become more valuable than ~20x the entire company? There are many options, but assuming Saylor doesn’t sell the majority and HODLs (and his bullishness makes this likely), there are 3 main possibilities that come to mind

6/ Option 1:Reinvest in core products. MSTR is the largest independent public business intelligence company w/ a leading enterprise analytics platform. Saylor could sell a portion of BTC & reinvest profits into his existing core products. Right now, I find this an unlikely move..

7/ Option 2: Expand to new products. As a BI company, with BTC as their largest asset, wouldn’t it make sense to expand to blockchain analytics? Saylor said as much at the Investor Day in Nov...

8/ “There’s an entire exploding universe of intelligence opportunities all wrapped around this kind of unique bitcoin intelligence coming off the blockchain. And we’ll explore it all.” - Saylor

9/ Saylor also shared a new dashboard tracking returns of currencies, metals, stocks, & bonds vs BTC. It makes sense to track BTC return given it is now their main reserve asset. But also points to MSTR’s interest (and ability) to focus on BTC related metrics/products

10/ MSTR's new dashboard on their site https://www.microstrategy.com/en/hyperintelligence/asset-vs-btc

11/ Option 3: Completely pivot MSTR to a crypto company. He could refocus the entire company to BTC development or other crypto venture. I find this less likely since he spent 20+ yrs building a strong BI biz. But, w/ the pressure of BTC’s skyrocketing value, not an impossibility

12/ TL;DR: Given the bullish case for Bitcoin, Bitcoin will not just be MSTR’s main reserve asset, but change the future direction of the company. This seems most likely to play out in the form of Saylor soon expanding the company’s products into blockchain analytics