The price of MicroStrategy stock soared above $200, the MSTR bulls were in force last week, reporting insufferably how Michael Saylor’s tech company, a once-dead dot-com era tech company, will once again outperform this cycle everything.
Look, I’m not even going to start parsing the hokum. You can follow Little Pain, Dan Hilleryor any of the hundreds of Bitcoin X accounts that now make up the MSTR bull twitterverse.
There is videos, wiresand of course many people who spend irresponsibly long hours…
But the general gist is this:
- Michael Saylor’s has decided to buy over 200,000 BTC and keep buying Bitcoin until the fiat system collapses. He will continue to use cheap debt to do thisthat he can borrow because this is how the fiat system works, infinite money mistake.
- This will make its company more valuable than other companies – because it offers exposure to a valuable and scarce resource (Bitcoin), but with added beta thanks to the company’s existing profitable product suite. In other words, as the Bitcoin they collect increases in value, Microstrategy’s stock will look undervalued compared to the underlying collateral.
- Since BTC won’t go to zero and the Federal Reserve needs to keep cutting rates (stimulating stocks), this is a perfect storm for MSTR. This will benefit from the liquidity injection and outperform Bitcoin even as Bitcoin enters its 4-year term. cycle… blah blah blah.
This is my best attempt at repeating this paper, I wrote it in 2 minutes. I refuse to even copy it. The bottom line is that companies that some people think buying Bitcoin stocks can outperform Bitcoin for some reason, and that this is not speculation, but morally aligned Bitcoin maximalismor something…
Maybe Dylan LeClair can explain the math to you. He tried it with me several times, and I never understood more than the above. Amount of Bitcoin the company owns per share = good. No Bitcoin divided by stocks = bad.
Why did I buy MSTR? Short story, I had money in my 401(k) that I can only invest in regulated investments. (Yes, that means I also own Bitcoin ETFs.)
But that’s actually not the whole story. Really, I’m tired of seeing the MSTR bulls being right about whatever they’re talking about, and I want some skin on the top. Should I have done some due diligence here? Should I have a hypothesis? Shouldn’t I just be HODLING?
Maybe, but have you considered Michael Saylor, bull, bull, bull?