@kcblitzkrieg
LOL I think you are late to the rock throwing party. The issue is that MSTR doobie used debt to buy these and for the total ammt invested he is pretty heavily leveraged so that is why the stock dropped 70% when BTC dropped and I am saying another small drop would be massively damaging since his equity is so low relative to the total investment.
Oh this is a simple situation, not complex at all, get me the dates on when he went heavy on debt for buying at the market, then we will compare the market caps of miner stocks at that time and all along. The guy could have done a takeover of several miners and been mining this entire time and guess what, the purchase of a company has assets behind the purchase, so in addition to the treasury BTC the companies owned (MARA, RIOT etc) they also have business assets and have been mining all along, now take the debt used and lets look at TODAY what is his real equity? Based on BTC 38k what is his equity? Not how much each is worth, you have to say what equity he has. Then compare to what the enterprise value of the miner is today and compare. Most margins for miners is 70-80% so the equity of every single mined BTC is strong, the underlying equity even if BTC drops 15k more is higher than what Saylor has for buying at the market since it was all with debt.
So if you want to see what the best use of capital is at this point, the exercise is simple..and even if he didnt want to buy say a RIOT or MARA he could have created a stand alone mining operation for much cheaper back then and been mining the entire time.
Do you actually know what his equity is right now and that is including debt service as well even if the rate is artificially low there still is debt service. You say above his average is 27k but I saw on his twitter his average price is over 30k and who knows the interest expense I am not sure. So he has 8k per coin in equity and spent 3.7B to purchase them, that is a 30% profit margin on his debt and 30% equity. MARA market cap is 2.5B today, RIOT is 1.94B and both have over 6k BTC plus cash and assets and they are mining at a lower prices than Saylor paid. So what is a good rate of return for the high risk he is taking on BTC?
In August of 2020 Saylor started buying BTC, back then MARA traded at less than 5 per share or a market cap of 300M (likely less they floated since then) and RIOT was trading at 3 and that is a less than 300M market cap so he could have purchased both for less than a Billion, less and have enterprise equity now at triple what he has by owning BTC alone (enterprise equity meaning share price then vs now).
Easy decision...
He put basically his entire personal net worth in bitcoin at an average of $8,000 per Btc and then started the process of getting people within MicroStrategy on board … MicroStrategy started buying around $15k I believe and they’ve been continuously buying ever since. His plan is to hold. Where were you when Bitcoin was $65,000? Nowhere. You’ve basically been a buy signal whenever you start this.
Most of your analysis here is on the past and is accurate enough … analyzing the past is simple… but his plan is to hold. I honestly didn’t know what you meant when you said ‘buy a miner’.
If you had to hold something for the next 10 years what would you rather hold … BTC or MARA/RIOT? I would rather hold BTC.
He’s been continuously buying so it makes sense that he’s not up massively on his holdings.
Saylor is going to win his bet and he’s going to win it in a big way.
Your crypto calls haven’t been great. You never said RIOT or MARA was a good buy when they were cheap. You never thought Bitcoin was going to hit $60+k. You never thought altcoins were going to explode the way they did.
You know who called all of that? Me. And you ‘corrected’ me.
First off I am not interested in alt coins, if any comment I made it was that the risk is not worth it but hey some people like high risk and some do not, you were telling many and me to buy ADA at 3 and I am not rubbing your nose in it, what good does it do? That is your gig to push people down my comment was Saylor has little equity in his purchases, they are debt based not with cash flow or cash he has and I think that was a massive mistake even if it does go higher.
To answer what you asked, I doubt he ever considered buying an asset based approach and mine, he was enamored with the premise of BTC not thinking of it as a CEO and as an executive and yes I would rather own the opportunity that gave me the most assets, the greatest return on equity and the least ammt of debt required to perform the objective. The better play no question was to buy a miner, but I would bet he either never considered it or minimized the concept back then.
Also I did not come in and attack you on what you own or rub in your face when you kept posting leveraged trades that you acknowledge you lost on, I never tallied your losing trades, that is what YOU do and you have always done to me and many others, you trail people to belittle and try to make yourself feel better. I hope you do quite well with whatever you decide and no i have not mentioned what I own or have purchased because the few times I ever did YOU personally attacked and tried to put me down on any trade I ever posted, you are one of the only posters in this forum who resort to petty personal attacks, but I do actually own several BTC miners, but that has nothing to do with the discussion of Saylor using pure debt to buy BTC, he is heavily leveraged and I have no idea why a company board of directors would allow a 3B purchase based solely on debt when the market cap of the entire entity is a little over 3B itself, that is absurd.
If you continuously bought something over the last year you would have little equity in your purchases as well. Please name the assets that could have been continuously purchased over the last year and a half and have a ton of equity.
If you bought MARA or RIOT every time he bought BTC then your equity wouldn’t be nearly what your math was suggesting. Your math was based on the low not based on a continuous purchasing spree.
I’ve mentioned your bitcoin trade because you talk as if you have all the answers but the fact is you sold your bitcoin at like $9,000 and made basically nothing while mocking me when I said bitcoin was going to $50,000+.
You’re Monday morning quarterbacking Saylor and in the long run he’s going to be right and you’re going to be wrong.
I never said what I sold at, and that is the same reason because you are always looking to take a shot at someone and you have made several negative comments about what you guess my trade was and many many other things. You need to stop attacking and belittling people that serves zero purpose and I think you know if it happens again what the result will be.
All along pretty much my sole remark about Saylor is that he is using debt to purchase and has little equity, and that the company is a technology company not a bitcoin risk investment vehicle, I have no clue how shareholders and BOD allowed this guy to leverage 3B in pure debt and put the company at risk in the process. Its reckless and even if he succeeds it is not sound business. If he invested cash flows from operations or a moderate level of debt well maybe and then you form an entity aside from the core business, this happens often but not that the side gig overtakes the foundation of the business and potentially could destroy the entire entity.
You are rarely doing back and forth here it is either people agreeing with your position or you outright attacking and abusing the rules when someone disagrees with you, it happens quite regularly but it will for sure never happen again I can promise you that much. I dont care if someone loses on a trade or wins on a trade, your abusive childish attacks are finished and never should have been allowed to go this far.
@I_Need_A_Detox
Useless no, worth the current valuation no. At least there is recourse, so these people can legally pursue recourse...what about the people this week that got swindled from that scam I read about with crypto? What is their recourse or insurance, zero...nada...nothing. It is one of the biggest weaknesses of the enterprise is if you get screwed it is 100% on you, nothing you can do about it. If anything this issue is why US regulators should get involved, the little guy can get taken and does get taken and there is zero which can be done about it.
Blackrock owns 16.3% of Microstrategy. They also plan to offer crypto trading through the firm's Aladdin investment platform. The Crypto space will soon be as corrupt as the stock market. 
Lol I’m sure it is already corrupt as f*ck in the crypto space, where there is BIG money involve there is and will always be corruption involve, how many times have you seen ‘rug pull’ in the crypto space and big time manipulations by whales in this space already, and also so much people’s cryptos get hack. With that said I still think crypto space has better upside than any other types of investments but for sure more risks too.
I don’t know for sure because when BTC becomes big enough like say over $500,000 in price with a significant market cap the gov around the world could decide to ban or regulate it to shit, right now it’s not big enough to be a major concern and also in a few years I’m sure USA and some other counties will want their own central bank digital currency (CBDC) like China have now and it will mean the gov will do everything in their power to ban or regulate BTC to shit. I hope to see cryptos in general succeed but do have concerns when it significantly becomes big enough the corrupted gov will do things to hurt or slow it down to promote their CBDC.
I don’t know for sure because when BTC becomes big enough like say over $500,000 in price with a significant market cap the gov around the world could decide to ban or regulate it to shit, right now it’s not big enough to be a major concern and also in a few years I’m sure USA and some other counties will want their own central bank digital currency (CBDC) like China have now and it will mean the gov will do everything in their power to ban or regulate BTC to shit. I hope to see cryptos in general succeed but do have concerns when it significantly becomes big enough the corrupted gov will do things to hurt or slow it down to promote their CBDC.
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