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This is short term thinking. MSTR has access to the capital market and the BTC market cap. Tesla has to sell cars and the story of all the tech they are brining to the world.
That’s a fair perspective, but look at it differently.
Relying on Wall Street to constantly issue more debt or equity to survive a sideways market is its own kind of treadmill.Tesla producing physical products gives them self-sustaining cash flow. They don’t need permission from credit markets to keep the lights on during a deep crypto winter. Clean cash offers a completely different peace of mind than debt leverage.
Yea but that is why MSTR calls its self strategy. I like both companies but on a long time scale 20 to 50 years MSTR can literally do nothing and ride the wave up that bitcoin is while Tesla can’t.
20 to 50 years MSTR can literally do nothing and ride the wave up that bitcoin is while Tesla can’t.
If Bitcoin wins that big, MSTR’s stash scales to the moon. My only thought is that over a multi-decade timeline, managing and rolling over debt maturities gets incredibly complex if macro conditions tighten. But hey, if the wave goes up forever, none of that matters. Let's see how it plays out!
@BlokchainB @denlillaapan
Love seeing this debate in the replies! You both hit the exact nerve center of this post.
Borrowing fiat to buy a finite asset like Bitcoin is the ultimate speculative attack play. But leverage introduces real execution risk. Tesla’s cash-funded treasury lets them ignore paper losses for free, while MicroStrategy’s debt model requires flawless liquidity management to survive a long, sideways market.