Replying to Avatar Creediator

How are they borrowing at 0%. They are raising money by borrowing against stock so if the stock falls their will have to liquidate bitcoin to settle the loan which then floods the market even more. 600% stock gain in a year where BTC is only 2x. That is leverage isn’t it?
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B.O.P 1y ago

I am trying to figure that out too. I know the closest they got liquidated was at 15k. Their average price per coin is around 40k so they would be in the money after a 30k decline. From my understanding People buy micro strategy stock, the price of the stock rises, this essentially gives mrst the ability to take out debt against those shares in the form of company issued bonds. Then they buy bitcoin by converting those bonds into fiat to buy more.

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Creediator 1y ago

Well the math doesn’t add up. You can essentially do this with any asset. Issuing more shares is inflation of stock which should put pressure on the stock value growth.

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B.O.P 1y ago

Exactly and other companies will do this, and that’s why every company will eventually be priced in bitcoin.

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B.O.P 1y ago

Or bitcoin per share

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B.O.P 1y ago

Any company can dilute their shares already to infinity that isn’t anything new. What is new here is backing it with an asset like bitcoin and essentially printing free money to buy the scarcist asset on earth.