It could also signal that they're unable to deploy capital to innovate (and bring future cash flow).... MicroStrategy has been an acquisition target for many years.
This is also my take, bad capital allocation.
MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
31–40 of 176 posts
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#32If most assets are still rising and breaking all time highs in a downturn economy what it really means is that the dollar is falling in a race to the bottom with all other fiat currencies. People avoid holding money by buying stocks and housing, not because of natural P/E ratio but forced by the continuously devaluation of cash. What "money" do you expect businesses want to hold in this situation?
The interesting thing is that stocks and real estate were traditionally considered difficult things to protect. For example, without the US military, many global businesses wouldn't exist. It's basically like the US citizens paying taxes so that stocks are safe investments for the richest of the world.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#33Earlier quoted context omitted.
It seems to be a common sentiment but the general business people can't completely back it with macro data so everyone just brace for impact... I assume these folks have actual intel to take this big decision.
>I assume these folks have actual intel to take this big decision. They sure write like they do. But they act like gamblers hoping for the next big score.
What if sentiment is blue-pilled and holding dollars is actually the gamble? You would be holding the wrong side of the stick.
I would agree that dollars have little downside but the purchasing power degradation of dollars feels like a irremediable tax on savings. And hard money like gold, silver, Bitcoin or Ethereum a quite decent hedge.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#34Earlier quoted context omitted.
wasn't quanatative easing done for like a decade after tbe recession with no inflation? why is there any reason to think this time around will be different? scale?
No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.
I never understood how anyone can find it remotely fair for the Fed to introduce new money into the economy by any means other than equal division between all citizens.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#35"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…
It seems to be a common sentiment but the general business people can't completely back it with macro data so everyone just brace for impact... I assume these folks have actual intel to take this big decision.
>I assume these folks have actual intel to take this big decision.
Short of a crystal ball I don’t see how
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#36Earlier quoted context omitted.
wasn't quanatative easing done for like a decade after tbe recession with no inflation? why is there any reason to think this time around will be different? scale?
No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.
But if there's special kind of inflation that doesn't hurt people's ability to buy goods and services, does that really matter?
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#37"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…
wasn't quanatative easing done for like a decade after tbe recession with no inflation? why is there any reason to think this time around will be different? scale?
Also look at art prices. The money was going to certain places without ending up in the hands of the every day people.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#38They do not care about the environment. Bitcoin contributes a lot to global warming by design.
Maybe, but who really cares about the environment when they stand to make some easy money?
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#39Earlier quoted context omitted.
wasn't quanatative easing done for like a decade after tbe recession with no inflation? why is there any reason to think this time around will be different? scale?
No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.
CPI includes housing. Most Americans have seen minimal inflation over the last decade.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#40"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…
I can totally believe how Bitcoin, Ethereum and the rest of the cryptocurrency space could go through another bubble (the last one was quite small if you compare it to the DotCom bubble and consider how much money is floating around nowadays). So I can imagine that this will turn into a big profit for them but the arguments are hilariously weak. Granted they will get a lot of PR out of it.
Hilariously weak? I think they lay out a reasonable argument considering the amount of debt around the world and the fragility of the economy. The big question is: will we have deflation or inflation? I am not sure, but I doubt the USG will let itself go bankrupt.