What does he need to do? His company already has a large portion of the supply.
Discussion
I think that's the point, his company doesn't DO anything.
It does what he wants it to do. Other people are investing in it because it does what they want it to do.
You may be applying your own philosophy onto a company as a value judgement. A company is merely a legal structure for cooperating people who have a specific goal. It doesn't need to DO anything other than whatever those people want it to do.
I agree that it's only possible within the context of a fucked up fiat system, but that's just reality. I also agree the model would go away with a Bitcoin world. But they'll still have the Bitcoin they bought. That's my main point. They may get no more, but they already have a huge amount. The company will have served its purpose and dissolve I suppose.
Strategy to me is much like the investment companies that shorted the housing market in 2008 and got fiat rich. The difference is that Strategy will get Bitcoin rich. People were using leverage to short housing too. He's just shorting fiat. You could say those companies did nothing, but that's only true if you remove the fact that they did exactly what they aimed to do.
Well it is the infinite money glitch as they say. But yeah, why let Saylor and Wall street hold bitcoin when you can hold yourself... Degens gonna degen.
Once they can't buy any more on leverage, they either sell or rug their investors. They do have enough to last them a long time though admittedly. It will be free money for them and other bitcoin treasuries in the long run I'm sure.
So I actually don't fully understand their entire structure. I may be missing a point as a result. The biggest risk I see if if they need more debt than they're worth in Bitcoin to stay solvent and can't get the debt. If that's the point, then I agree they're fucked if one of several things happen. I was under the impression they were paying debt back for free and clear Bitcoin. While risky, I imagine they'll walk away with Bitcoin.
But this is why I use self-custody instead of Strategy. For me, escaping this kind of bullshit is the whole point.
I understand they get the debt almost interest free and dilute shareholders. So it is basically risk free as long as bitcoin keeps going up as the bitcoin on balance sheet increases the company value. Which I'm sure it will.
The risk is trusting a 3rd party. Mara are a large bitcoin holder but they dilute the shareholders and extract the value for themselves.
The other risk is, that they have no real business activities. So what is the point to hold them over owning bitcoin yourself? They have no revenue or provide any value.
Just like for people, I do believe (real) businesses should have bitcoin treasuries though, it can ony give more positive effects long term.