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Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

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Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#41

Post by sugarkjube »

7e wrote: post #13
wonderwonder wrote: post #12

I had always thought of BTC in terms of an alternate currency but I watched a video yesterday with Saylor where he pitched it instead as a store of value. While the concept was not new to me, it was a really interesting video and he did a good job with it. BTC will not replace the dollar, but its probably going to eat gold.

What value does it provide?

Actually, there is an underlying value.

What is the the underlying value if a dollar? Or euro?

On first sight, there is none. But when the IRS knocks at your door to collect taxes, you will need to cough up dollars. Or euros when you live in europe. Rubel, yen or gold won't do.

That provides the underlying value of the dollar. Or the euro.

Now what about BTC ?

When the ransomware hacker knocks at your door, you'll have to get bitcoin. Dollars or rubel won't do. That provides the underlying value of the bitcoin.

Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#42

Post by paulpauper »

paulgb wrote: post #38

At today's price, MSTR owns about $14B of Bitcoin and has a market cap of almost $30B. Has anyone here actually used MicroStrategy, the product/service offering? Is the software company behind it worth the implied $16B, or is MSTR essentially just a Bitcoin ETF with a really bad fee ratio? (I’m not even counting the $2B debt on their books) Would I be dumb to do a long BTC / short MSTR pair trade?

Would I be dumb to do a long BTC / short MSTR pair trade?

yes because one of the legs can have unbounded losses

Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#45

Post by sailfast »

wonderwonder wrote: post #12

I had always thought of BTC in terms of an alternate currency but I watched a video yesterday with Saylor where he pitched it instead as a store of value. While the concept was not new to me, it was a really interesting video and he did a good job with it. BTC will not replace the dollar, but its probably going to eat gold.

Only if bagholders convince others that this is true. It's a sales and stability pitch at this point just like fiat currency.

Not sure why it's a good long-term store. It requires electricity to exist.

Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#46

Post by lupire »

alchemist1e9 wrote: post #10
paulpauper wrote: post #2

this sounds like a ponzi scheme in the making, or at least not going to end well

why is Bitcoin so divisive? why some people just “get it” and other scream until they are blue in their face it’s a scam? it’s such a curious litmus test for something but I’m not sure exactly what.

The only use case is getting rich of of other people's losses. There's no social value creation. Some people love that and some hate that.

Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#47

Post by paulpauper »

alchemist1e9 wrote: post #10
paulpauper wrote: post #2

this sounds like a ponzi scheme in the making, or at least not going to end well

why is Bitcoin so divisive? why some people just “get it” and other scream until they are blue in their face it’s a scam? it’s such a curious litmus test for something but I’m not sure exactly what.

there is nothing divisive about pointing out the inherent risk of using debt to buy a highly volaille asset on leverage

Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#48

Post by wmf »

wonderwonder wrote: post #26
dnamlin wrote: post #22

Earlier quoted context omitted.

To me it's never been that "intrinsic value" of Bitcoin makes much sense, but that it holds up a mirror to the incumbent system and how little that makes sense either!

Agree, so much of our global financial system is just made up and produces wealth from the ether. Credit default swaps...

Credit default swaps are not magic; if you can correctly predict future default risk you can use CDSes to take money from people who predict wrong (and this also provides information to the market, encouraging the underlying to be more accurately... never mind).

Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#49

Post by joegibbs »

I might be wrong, it can always keep going up, but is it wise to make a big purchase of an asset that has just reached an all-time high? Especially given how volatile BTC is - it could possibly go to 200k or higher, or it could possibly lose 70% in a year like it did in 2022.

Re: Michael Saylor's MicroStrategy Raising Another $500M to Buy More Bitcoin

#50

Post by heed »

dharma1 wrote: post #17
kinghajj wrote: post #8

Earlier quoted context omitted.

There's some hay in the cryptocurrency space right now about how MSTR's market cap merits its inclusion in the S&P 500, which some think will cause a "flywheel". (1) Index funds purchase MSTR shares, driving up the price; (2) thus allowing Saylor to issue more debt to buy BTC, which drives that up; (3) MSTR shares appreciate due to its BTC holdings; (4) go to step 1 as funds need to rebalance and add more MSTR shares…

Inclusion to S&P500 is a committee decision, not based on purely market cap. It may not happen for MSTR. MSTR is essentially a leveraged, debt laden commodity trust rn, with a highly volatile commodity making up most of its balance sheet. Their premium to NAV is indeed very high, and makes you think why would anyone buy that vs a BTC ETF. Perhaps if you think BTC goes a lot higher (and stays there) their ongoing leve…

I watched part of an interview Saylor gave recently where he said the reason to invest in MSTR over an ETF is increased performance.
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