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Saylor can get away w this due to owning most of MS.
Your regular CEO who doesn’t wouldn’t even dream of taking this risk w his company’s balance sheet.
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Saylor comes off as a complete lunatic that plays into HODL fanaticism. If he gets liquidated who knows what will happen.
It's one thing to invest in bitcoin as a technology, it's another thing to just hold a ton of bitcoin liquidity and hope that hype causes it to appreciate.
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He does come off as a complete lunatic, agreed, but he could be more orange pilled than any of us realize - nonzero chance of that.
Other thoughts:
  1. I think he is so all in on Bitcoin as his final play - he's gonna get stupidly rich via Bitcoin or die trying.
  2. I don't think he buys into any hardcore cypherpunk ethos
  3. $20K is an absolute steal for Bitcoin, if I had $500M I'd buy more at that price
  4. Saylor probably personally does jack shit to help Bitcoin's adoption as a medium of exchange, which is like priority number 1 right now for me personally
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Saylor probably personally does jack shit to help Bitcoin's adoption as a medium of exchange, which is like priority number 1 right now for me personally
He announced a few days ago that MS are looking into Lightning R&D for enterprise applications, so it'll be interesting to see what happens with that.
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Just for reference, who do you guys think is NOT a "lunatic"?
Calling enormously successful / influential people "crazy" "odd" etc. is such a boring opinion. Would you rather they just sit at home and watch netflix and football? Stay in their lane? What do you think success and influence should be?
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Tim cook strikes me as this very run of the mill billionaire - not a lunatic at all. Could probably think of others. I agree it's such a boring, neomarxist opinion.
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Good example and good on recognizing the problem. The enemies of freedom want a slow march toward mediocrity.
So I could be fooled, but it stands to reason that anyone sticking their neck out is rejecting the mediocrity, and probably doing it at great risk to themselves. So people like Saylor should be celebrated for their balls, or we wake up one day and balls are gone for good.
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I wonder if MSTR and MS ever do miscalculate this leveraged bet, I mean this is all debt marked against his company income, so I assume he must have contracts locked in with governments, no one could be this confident if they didn't have a customer who isn't agnostic to the economic climate.
Is he just making a bet that governments will always fund him at an increased rate + inflation will erode the debt his taking on and the diluting of equity?
Surely there is a breaking point where this strategy gets over it's ski's
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Save some for the rest of us, geeze
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Good for them. MSTR is priced like a meme stock right now IMO.
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I don't understand stocks. Are they effectively creating more shares to raise $500m? I'm probably mistaken because the stock price is up on the news (unless that's unrelated).
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200 sats \ 1 reply \ @jeff 9 Sep 2022
Risk assets rallied hard today. The entire market, and bitcoin, all went up. That probably explains it more than this specific announcement.
For all we know, if this news wouldn't have come out, the stock might have rallied even more than it did.
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102 sats \ 7 replies \ @jp 9 Sep 2022
Yes, microstrategy is selling common stock (a basic equity) to raise funds. These funds are then used for investment purposes (which will be Bitcoin)
Institutions which cannot directly invest in Bitcoin (but are able to invest in equities - eg retirement funds) can buy microstrategy stock to get some exposure to Bitcoin through an intermediary
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Does this kind of thing dilutes existing shareholders?
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223 sats \ 5 replies \ @jp 9 Sep 2022
Generally, Yes - there are more shares that have been issued.
If you had 10 shares of a company that had 100 total shares, you would have 10% equity. If the company offered new shares (e.g 20 more shares to have a total of 120 shares in the market), you would have 8% (10/120)
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But since he will just buy more bitcoin with it, it doesn't really dilute the other shares right? People who buy these new shares in reality buy bitcoin for MSTR. There will be more shares, but there will also be more bitcoin in the treasury.
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No, there will be more shares so the existing shareholders will be diluted by the latest issuance.
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Got to love inflating shares in your own company to facilitate buying an asset that can not be inflated.
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Mstr is just a bitcoin etf at this point, so that logic makes less sense.
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Dilution makes sense for existing investors if their overall value of their holdings has gone up. 10% of a company valued at 10M is worse than 8% of a company valued at 100M.
Legend
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You have to admire Saylor.
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Lmfao imagine being so one dimensional, you cannot imagine any way of making money other than buying Bitcoin.
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How would you do it different? M&A's? Stock buybacks? What makes his strategy so one dimensional? Have you've listened to his breakdown of alternative options and how he's outperformed all of them? The performance of MSTR has been nothing short of phenomenal since adopting a bitcoin standard.
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I don’t like financial speculators. I like entrepreneurs. He should focus on building a business that increases Bitcoin adoption, instead of simply buying it up and hoping it goes up in value.
Let me be clear - I don’t like people who skim off the top to get their money. Institutionalized rent seekers and financial market traders are an unproductive plague on society.
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What is your motivation on this site? Your posts really don't align with this community. But it doesn't seem like you have any good ideas of your own? Since you aren't trying to be convincing, I have to assume you are just trying to be disruptive? Start your own website where you can be king! But that would require effort instead of just mindless critique. Tough spot to be in for you.
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It’s not a tough spot at all man.
I think we should be using Bitcoin to pay people and to buy goods and services.
A lot of people think we should hodl it and buy it as an investment piece - when, if that’s all that is ever done with it, it will never achieve the universal adoption I would like to see.
I’m pushing back on the manic focus on financial speculation in this community.
If you can’t appreciate that, oh well.
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I actually share your perspective on spending bitcoin, and I strongly share your perspective on rent-seeking behavior.
You do you, I'm not trying to censor or tell you what to do. Just suggesting that you are tripping over your own dick and really come off as an asshole sometimes. Not saying thats your intent just another asshole's opinion.
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2 cheers to assholes with opinions.
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I try to spend and use the network as much as possible!
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