thinking out loud here:
do Berkshire Hathaway investors ask to see bank info for the 300 billion USD on their balance sheet?
Do Apple investors worry about TIm Cook not promising for share buybacks? how much of the value in the stock can't actually be redeemed by USD on the balance sheet.
so if Michael is refusing to do buybacks, the only thing he wants to do is invest in his own business similar to a growth tech company. I interpret that as he is not competing with ETP products.
Agreed, normies companies you trust and your trusted source are auditors and regulators.
But Bitcoin is different while self custody Bitcoin is verified, not trusted.
Bitcoin companies like Xapo bank or Strategy are hybrid models, most of their business is still based on trust, but the Bitcoin part is the bridge to a new paradigm.
Don't trust, verify.
At least the Bitcoin holdings should follow the Bitcoin philosophy.
i also don't hear Tesla investors talking about this, but they do have a lot more data about new cars in parking lots, millions of drivers proving out FSD, etc.
so if Balance sheet is what Strategy does, it does seem logical to have some way for investors to measure it
maybe it's ENron! i'm cooked just like my grandparents were in that case
You must be new to bitcoin. "Trust me, bro" is not how we do it. And I couldn't care less how tradfi does it.
not new to bitcoin per se, but i'm new to diversifying into GameStop & Metaplanet, or Enron 2 & 3.
idk, maybe there's a genetic propensity to trusting in founder-led ponzi schemes. if my grandparents tried to increase their share of people's time on this earth by buying the original Enron (futures on future energy production), then there's nothing i can do but surrender to the fate of future scorn of bitcoiner snowbirds in their Naples mansions as i settle into a Sarasota mobile home.
i definitely think the highest IQ way to do bitcoin is everything in cold storage.
but maybe i can get even more than my fair share (and give away 10% of course). isn't this more helpful than if i just converted my saved time into bitcoin?
Insurance is still a valid business. so i'm investing in the future of insurance. maybe after hyperbitcoinization we won't need insurance as abundance mean that medical care costs go to almost zero and engineering stuff will get better so fewer accidents.
i see Strategy as an insurance play (biggest stack of collateral)
GME as a hedgefund with a horde of retail investors (as opposed to wealthy interests)
MetaPlanet is geographical diversification with incredibly intelligent leadership
I also think these will become new power brokers in a multi-polar, decentralized world. giving them bitcoin is like voting for the leader of my pack.
maybe that's why establishing podcasts nowadays is so popular, because getting one's brand out there is how to amass power and influence. it used to be priests/politics.
nuns don't appear to get the respect that priests do. i want the ego of a nun
MSTR is different in the sense that it is a kind of club with explicit purpose to hold BTC and short fiat. Isn't its whole half of the balance sheet BTC? If I was part of that club, I would want to see the coins are there. It is not like other companies where the purpose is to have a profitable economic activity.
Yeah, it does make sense. this could be low hanging fruit for the new MSTR competitors to establish public addresses.
"Like MSTR but with proof-of-reserves"
this is what has my wheels spinning more than the proof of reserves:
what is this ATM thing he is talking about?
so the idea used to be:
short fiat long bitcoin --> borrow convertible debt at lower interest rates than what individual investors can
it was understandable for someone who wanted to short the fiat system and didn't mind the volatility
however now they have made a sort of Rube Goldberg machine with STRF and STRK preferred shares. the 10 and 8 % dividends of the preferred shares are always paid out by selling shares of MSTR into the market.
it should be no problem since the price of the underlying bitcoin collateral should grow much faster than the 10% and 8% fiat dividends. and they are well over-collateralized (5 to 1).
the MSTR shareholders are betting that the price of bitcoin will rise much quicker than the 10 and 8% dividends, plus the Bitcoin bought by the STRF and STRK shareholders grows faster than the dividends and increases MSTR shareholders Bitcoin per share.
the worry is that sentiment drives MNAV right now and not any underlying business model.
interesting
