MicroStrategy’s stock price rising above $200, MSTR bulls have been active in the past week, sending no doubt that Michael Saylor’s technology firm, the once dead technology company from the dot-com era, will surpass everything again in this cycle.
Look, I won’t even begin to dissect the hokum. You can follow BitPaine, Dan Hillery, or any of the hundreds of Bitcoin X accounts that now populate the MSTR bull twitterverse.
There are videos, series, and of course, a lot of people who carelessly…
But the general gist is:
- Michael Saylor decided to buy more than 200,000 BTC, and continue to buy Bitcoin until the fiat system collapses. He will continue to use cheap credit to do this, he can’t borrow because that’s how the fiat system works, it’s a perpetual money glitch.
- This will make his company more valuable than other companies – as it provides exposure to a valuable and rare asset (Bitcoin), but with more beta due to existing profitable product companies. He put it another way, as Bitcoin accumulates gains in value, Microstrategy’s stock will look insignificant compared to the underlying security.
- Since BTC can’t go to zero, and the Federal Reserve has to keep cutting rates (increasing stocks), this is a perfect storm for MSTR, and it will benefit from the injection of liquidity and outperform Bitcoin as Bitcoin enters its prime years. -4. cycle … blah blah blah.
This is my best attempt to repeat this thesis, I wrote it in 2 minutes. I refuse to even copy and edit it. The core is companies that some people believe that buying Bitcoin stock can outperform Bitcoin for some reason, and that this is not speculation, but in line with the behavior of Bitcoin maximalism, or something…
Maybe Dylan LeClair can explain the math to you. He has tried with me many times, and I have never understood anything more than the above. The amount of Bitcoin the company owns per share = good. No Bitcoin divided into shares = bad.
So, why did I buy MSTR? Long story short, I had money in a 401(k) that I could only invest in managed investments. (Yes, that means I also own Bitcoin ETFs.)
But that is not the whole story. Really, I’m just tired of watching MSTR bulls be right about anything they talk about, and want some skin on top. Should I have done some due diligence here? Should I have some hypothesis? Shouldn’t I just be HODLING?
Maybe, but have you considered Michael Saylor, bull, bull, bull?
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