It's not quite that simple. Microstrategy has invested virtually all of its deposits in Bitcoin + taken on debt in the form of loans & convertible bonds in order to buy even more Bitcoin. However, the debt they have taken on is always due at least 4 years later (I think Saylor wants to take the Bitcoin cycles with him). With the 500 million announced a few days ago, they will have 1% of all Bitcoin.
I think in the long run this will make Microstrategy one of the most valuable companies in the world.
They have also announced that they want to become the first "Bitcoin Development Company". I think sooner or later they will stop their current software business.
I think in the long run this will make Microstrategy one of the most valuable companies in the world.
They have also announced that they want to become the first "Bitcoin Development Company". I think sooner or later they will stop their current software business.
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@stefan_21 I think so! Simple math!
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@GordonGekko83 Yes, of course you're right with your math. However, expectations are always traded on the stock market. And the expectation is that Microstrategy will continue to accumulate more Bitcoin by all means. I could also imagine that they will issue new shares to further increase their position and bring the market capitalization more in line with their Bitcoin holdings.
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@stefan_21 What's good about diluting shares? Why not invest directly in Bitcoin? The business model really makes no sense to me! Why buy the expensive duplicate when I can buy the original and cheaper! For me, the store is irrationally overpriced.
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@GordonGekko83 This is not good for the investor. However, they can continue to buy Bitcoin with the money. They have done this several times in the past. I don't invest in Microstrategy either, but directly in Bitcoin. But I think Microstrategy can be seen as a Bitcoin derivative, as they are leveraged investments. Personally, I wouldn't bet on the price falling while Bitcoin climbs towards 100,000.
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