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Is MicroStrategy Just a Bitcoin Time Bomb Waiting to Explode?
230 sats \ 4 comments \ @DrBrader99 3h bitcoin
So i was recently reading a article where peter schiff has said that bitcoin treasury companies like microstrategy-"have no real bussiness model"
He basically said
        The company generates little to no meaningful operating earnings 

        It keeps piling on accounting losses from btc volatility 

        It only survives by issuing more debt or equity to buy more bitcoin
So Is this actually true?
Microstrategy still has a software bussiness but the market no longer values it for that it trades like a laveraged bitcoin etf
So the question that interest me
What would actually happen if mstr ever started selling large amount of bitcoin
Would it crash the market?
Or is todays liquidity deep enough that retail plus institution would absorb it?
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0 sats \ 2 replies \ @BlokchainB 2h
Would it crash the market?
Yes it would. Simple supply and demand dynamics. If Saylor dumped his 600k+ coins on the market it would be catastrophic drawn down that would put Bitcoin in a deep bear market.
Or is todays liquidity deep enough that retail plus institution would absorb it?
The order book is not deep enough to absorb such a massive sale of coins. It will definitely tank the market
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53 sats \ 1 reply \ @spiderman 20m
But I will get bitcoin at a discount and it will further decentralise the ownership?
I am always a huge fan of Whale liquidation as it reduces a single entity's influence on the market.
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0 sats \ 0 replies \ @BlokchainB 16m
That’s if people take advantage a few will a majority won’t
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0 sats \ 0 replies \ @anon 1h
My opinion… is that mstr will be fine. They have like 600k bitcoin. When the world eventually figures out what bitcoin is and its 10 times more valuable mstr will be some kind of Berkshire Hathaway / Bitcoin bank.
NFA no one knows the future… but if I had to bet they’re still buying.
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