Replying to Avatar B.O.P

Is MSTR going to be this cycle’s FTX👀? They got too much corn
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Azz 1y ago

I think they will get too much debt and buy too high. A pump followed by a recession would break them.

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Matt 1y ago

I don’t think so. They are really not that leveraged. And the debt is unencumbered

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Azz 1y ago

I think the way it could play out is if Bitcoin goes much higher, MSTR share price moons, MSTR issues more debt to buy Bitcoinetc, until MSTR doesn't have the cash flow to service the debt without selling Bitcoin. Then the Bitcoin price crashes, their debt is not serviceable and they have to sell into a falling Bitcoin market to pay the interest on the debt. Perhaps Saylor has learnt since the dotcom bust, but I'm not certain that he will remain grounded during the heights of a bull market.

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Azz 1y ago

I think Blackrock and everyone else will be carefully analysing MSTRs income streams and will attack it once the market turns. Saylor will either dump at the top or be forced to sell down in a crashing market.

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Matt 1y ago

I don’t think so