Replying to Avatar MrTea

Great job Danny! Companies and individuals should strive to be productive. This is the part Saylor ignores. Selling debt to buy bitcoin is not productive. It’s obvious when taken to the extreme in a world where all companies just issue debt and buy bitcoin. It’s absurd. Yet if all companies strive to be productive in their own way then that makes sense.

All treasury companies are garbage. Basically scams where insiders use their influence to acquire more bitcoin than they could otherwise do personally. Saylor pretends that these are real businesses trying to be productive and simply buying bitcoin. They aren’t and he knows it. Strategy’s preferreds do add value to the marketplace so let’s call them the exception.
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ihsotas 1d ago

They should strive to get their investors return. Having a Bitcoin treasury does this. Pretty simple really.

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MrTea 1d ago

I can strive to be an Olympic sprinter but it won’t happen. However I don’t go around trying to (fraudulently) get people to invest in my future as a sprinter

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ihsotas 1d ago

How is it fraud? They lay out their thesis pretty clearly. Once a company has a stack of bitcoin they have different operating models they can move to. Strategy moved to the preferred market because they think they can offer higher yield while being way more collateralized than the standard offerings and therefore out compete the market. So far this thesis is playing out.

I don’t own anything besides bitcoin and some stupid shit in my limited 401k for my fiat job, but I don’t begrudge companies from trying to build a treasury of bitcoin.

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MrTea 1d ago

It probably isn’t fraud by the legal definition. It’s more like a shitcoin. I’m of the belief that companies should do something productive. Eventually they have to or will fail. My issue with most treasury companies is I don’t believe they actually are trying to do anything productive. I suppose they could so I can’t disagree with you on that. I think they’re all engaged in this ledge Ponzi scheme where they want you to buy equity in their company that does nothing and never will. Since they disclose that it’s not legal fraud. But it’s still a misallocation of capital which I can’t support. They should strive to do something productive with their time as we all should. Hodling bitcoin isn’t productive. Saylor knows this because he could use one of his own absurd analogies to deduce it

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ihsotas 1d ago

Saylor views most of the S&P and misallocated capital and fraudulent. His point is that most companies are shit, so why not at least be shit with Bitcoin on your balance sheet?

I’m a self custody maximalist, but I find the STRC product helpful in that I can keep some funds in essentially a stable coin earning yield. This product wouldn’t exist without a company deciding to accrue Bitcoin. Strategies initial plan was to try to beat stacking sats by accessing deeper credit markets and that worked out pretty well but had a limited shelf life. I think offering a high yield savings account is going to drive a lot of profit and will put strategy into a new class of company over the next 5 years.

There is of course going to be the pure grifters looking to take your bitcoin, but I think in general there are ideas being generated that will only be possible for companies with a large stack of bitcoin. Now is the time to get that large stack.