Saylor has been catching a lot of hate and general criticism lately, the critics extend their net to include all the so called Bitcoin treasury Companies, Strive, Metaplanet etc
Let's say you're an entrepreneur and you sell your business for $500M take home and you want to create a Bitcoin companyLet's say you're an entrepreneur and you sell your business for $500M take home and you want to create a Bitcoin company
- You can structure it any way you want
- As complex or simple as you say
- But it must be different from the way Saylor has built Strategy
You might put $350M straight into spot Bitcoin and hold it in proof of reserves multisig that is verifiable and use the $150M to generate an income of some kind, which pays some of it's profits into Bitcoin reserve as time goes by
Lots of Bitcoiners critique Saylor but how would you do it differently?
The main thing I would do differently, given that I'm trying to do something similar to Saylor, is that I would use my bitcoin to buy back shares whenever mNAV dips below one.
That would essentially set a floor under the share price based on bitcoin's current exchange rate and would ensure bitcoin per share only ever increases.
If this is just what kind of business I would run with that amount of bitcoin, then the answer is developing and installing products that make use of the heat output from bitcoin mining devices for both commercial and private use. Water heaters and furnaces are the obvious starting places, with saunas and hot tubs as more niche applications.
Rather than trying to convince users to pay more upfront for these products, I'd sell them for less than the alternatives on the market but direct any mining fees earned back to the company.
Employees would all have bitcoin denominated base salaries plus equity in the company and sales would be made exclusively in sats.
Saylor is not an idiot, he's not in the business of trying to lose money, but financial engineering is tricky because essentially whatever 'strategy lol' you decide upon, the short sellers are waiting like vultures to peck at your weaknesses
This is a pristine road map to take but there are multiple risks involved with this, I'm sure you're aware of them so I won't bore you with the details but it's worth mentioning...
And lastly, part of Saylor's ethos is not selling Bitcoin which stops the short sellers from arbing, if Wall St know that as soon as mnav dips you'll be buying back by selling corn, those pesky traders will be pre empting your move by trying to take advantage
On reflection it's a bit of a mess
It's only selling low when denominated in dollars but the play is the conversion between shares and bitcoin, not between either and fiat.
In terms of shares and bitcoin, he'd be buying low and selling high, respectively.
Wall St algs would instantly exploit this
Shorts would deliberately push the NAV below knowing it forces 'your' company to become a compulsory seller of its own underlying corn
I'll give you the benefit of the doubt in theoretical terms, we'll never know in reality unless you just won the powerball 😂😂
To be fair, he'd be no more obligated to make that trade at the moment mNAV flips than he is to issue new shares every moment that it's above one.
Fair dos, you were the only one who had a better idea, versus the thousands who criticise Saylor and that speaks volumes
A bitcoin company registered in nolsa with a focus on fiat result cannot be called a "bitcoin". The idea is to have a functional company with bitcoin return, it first needs to produce something, meet some demand, generate real value, sit on top of a bitcoin reserve and sell it or it does not meet this requirement. @Oshi is a bitcoin company in fact.
I was thinking recently about it, a company running on bitcoin, what would be the system of providing more bitcoins in exchange for financial results and everything else. I still need to elaborate so it's not a thrown post, I really want to receive good comments about it. This one of yours can be a good one to clarify the ideas.