Can someone explain why microstrategy isn't a ponzi? How do they pay their bond coupons if they don't sell their Bitcoin?
Discussion
Not saying it's not a ponzi but I believe they have a profitable software business earning 30-40 mil a year.
Nope. They don't produce anything anymore. They do absolutely nothing other than use BTC to collateralise a debt based fiat ponzi scheme. Bitcoin was supposed to fix debt. MSTR use it to support debt.
wait a year or so and they can explain how JP Mallers works aswell 🤣🤣🤣
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Not an expert but have heard that the software business meets their cash flow needs. I have always suspected that at some point they’re going to buy more cash flow in the form of another fiat business.
Strategy’s debt obligation is tiny compared to their ability to raise cash. When they sell shares in MSTR, STRK or STRF, or sell convertible bonds, there’s always a disclosure that the funds “will be used to buy Bitcoin and for other corporate purposes.”
The salient question for Bitcoiners is, “Is Bitcoin Yield increasing?” So far, the answer is assuredly, yes, steadily and aggressively. Over time, as Bitcoin price rises, MSTR rises 1.5 - 2x. So they sell appreciated shares, buy Bitcoin, pay the dividends and whatever else.
I’m curious to see what they do when the price crashes. I’m not worried that they can pay their dividends, and personally, it would bother me to see them sell some Bitcoin to ride out the bear market. All we know is, Saylor said they’d pause buying Bitcoin if conditions become unfavorable to their ability to increase Bitcoin Yield.
I meant to say, “…it would NOT bother me…”
This was my understanding as well. I’m sure at some point they will sell ‘when the market is higher’ and use the proceeds to pay off the debt to avoid doing so during the next bear market.
Just buy Bitcoin, but if you have money tapped in the market then MSTR has been a boon to my IRA. It’s also a good way to ‘time’ the Bitcoin market without selling actual Bitcoin.
With new debt lol it is a ponzi but so is the dollar