What’s the micro, micro, MICRO version of Microstrategy $MSTR?
My crude summary of Saylor’s move is to issue corporate debt to buy bitcoin, and as it has appreciated significantly over time, the value of MicroStrategy's holdings has surged, outstripping the costs of the loans.
A bold arbitrage.
So, I’m keen to know if anyone is doing this at a lower level - eg a private, bland business?
I own a biz generating 27% NPAT.
#bitcoin #business
nobody knows about private companies of course but there are a lot of companies copying Mstr strategy.
True, but some private companies and solopreneurs “build in public”.
Here’s one I stumbled upon: https://bitcoindentist.com.au
A dentist roll up diverting cash to bitcoin!
He is in a unique position because being a publicly traded company he can use the stock price to wage an attack on the monetary system.
He can offer convertible notes so he doesn't have to pay any of the loans back. The more he takes and locks in cold storage the tighter the supply the more BTC will go up the lower the chances the stock price won't out pace the bond payment.
Once others take note and start doing the same thing look out above. BTC price will crash up. He will hit a point where no company no matter how successful will ever be able to accumulate as much btc as mstr and they will be a force to be recond with when the BTC economy takes over the planet.
Right now they own 1.2% of the entire future global economy.
Mitsubishi UFJ Financial has the most cash on hand of any company at 780billion.
If there is 100T dollars in FIAT in the world Mitsubishi only has .78%
I have a feeling saylor won't be happy stopping and might get to 2.1% before this play starts to top out.
It’s a great play.
Private companies can also issue convertible notes. I’d love to know if anyone has raised capital for this kind of arb at a small, private level.
Think of permanent equity with a 30 year lock up - plenty of family offices/PE funds have that kind of structure too.
Just more difficult to value the conversion. But true.
