Is MicroStrategy Just a Bitcoin Time Bomb Waiting to Explode? \ stacker news ~bitcoin

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Is MicroStrategy Just a Bitcoin Time Bomb Waiting to Explode?

251 sats \ 9 comments \ @DrBrader99 27 Nov 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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72 sats \ 0 replies \ @anon 28 Nov

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.

0 sats \ 7 replies \ @BlokchainB 27 Nov

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

53 sats \ 6 replies \ @spiderman 28 Nov

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.

0 sats \ 5 replies \ @BlokchainB 28 Nov

That’s if people take advantage a few will a majority won’t

59 sats \ 4 replies \ @spiderman 28 Nov

If by few you mean the coins in a single address will get distributed to a hundred addresses that still is decentralisation

93 sats \ 3 replies \ @DrBrader99 OP 28 Nov

The order book is not deep enough to absorb such a massive sale of coins. It will definitely tank the market

Bitcoin trades around 20 to 30billion$ per day on combined major exchanges and mstr holds around 60billion$ worth of bitcoin so i think its not that market cannot absorb this massive dump just the panic it will create in market maybe not be sustained if lets say everyone tries to sell.

25 sats \ 2 replies \ @BlokchainB 28 Nov

That is probably total volume (buy and sell) plus price is set at the margin. If some market sold $60billion on a low buy volume day the price will free fall until buying can absorb all that sell pressure