I nailed close to the local top I have shares, though, because there's still uncertainties what level of bitcoin treasury adoption GME will be doing, If it's the same intensity as mstr or metaplanet, we're looking at 8000% roi within 5 years or 5000% roi within 2 years, respectively GME is the easiest >500% before end of year 2025 on shares, no leverage from this level $21/share as soon as I see a good amount of bitcoin purchase by GME, I'll be looking to buy LEAPS calls I still want to have 1000 shares of mstr and hold for 10 years or forever... 1000 shares of mstr will be worth $10M within 5 years, imho, but 5000 shares of GME will also be worth $10M within 5 years if they completely follow mstr bitcoin strategy for a lesser investment capital outlay, imho
I disagree. Investment funds needed a proxy to invest in crypto, thus MSTR's logic worked. But why would they need another and another one? Similarly, after BTC other coins came but they never caught up in price to the original one. Not to mention that American funds have now crypto ETFs, so no need for proxys anymore. I think in this case lightning will strike only once and that was MSTR. Have they done it a year ago, when the crypto fever was fresh(er), it could have worked. But investors should realize now that even MSTR is just moving with the market, so no special advantage in investing in it.
An interesting idea. Next to video games install trading desks. Let teenagers come in and enjoy the end times...
There are others adopting this bitcoin treasury, Rumble is also doing it, along with Tesla, Block, I think there's about 80 so far that are publicly traded companies, there are many more that are private companies The logic is based on discounted cash flow, increasing shareholder value, increase of book value, and all the stock market capital markets, financial markets valuation metrics Blackrock bitcoin spot etf ibit and others are always available By the numbers, GME purchases 15,000 bitcoin using the $1.3B in convertible bond issuance proceeds bitcoin goes to $200k before eoy, GME has now increased enterprise value, book value, treasury asset value, shareholder value And now GME earnings will show $1.7B increase in net income from the GAAP bitcoin profits And if bitcoin goes to $400k/btc, profits are even higher, of course if bitcoin goes down in price, there will be a recorded loss, which is why you have to believe in bitcoin
I understand why they are doing it, I just don't think the market will value the stock so much higher because of it. Well, if yesterday was a sign, they dropped a lot on the bond issue.
This is a normal occurrence and happens with mstr as well GME got a 0% interest loan of $1.3B for 5 years, but it comes with strings attached The convertible bond (debt) buyers hedge 70% of the debt value using GME shares, as it's a 70 delta call option, they cover as GME goes down, they short more as GME goes up, all the way to 100% delta neutral at the conversion price From my very limited understanding of the mechanics Pek, buy and hold for at least 5 years 1000 shares of GME, it will be worth $2M give or take
I'm surprised your estimation is too low. It should be $1 million, at least. As every responsible finance guru would tell you, the last thing you wanna do is to borrow money to gamble in Vegas, especially if you're already in debt and unemployed.
I do not want to be wrong, so I'm picking easy targets based on time periods $200k/btc is the easy target, 99.9988% probability before 1/1/2026 $1M/btc is the easy target 99.9988% probability before 1/1/2030 Your analogy is incorrect unless your definition of a "responsible finance guru" is a retarded moron Someone is lending you $1.3B for 0% interest for 5 years so that you can buy an asset that is practically guaranteed to go up in value in that same 5 years, most likely over 1000% in 5 years and you would turn it down??? What negative IQ would say no to such a deal, and it's secured by shares in your company you can issue at will GME has $16M in debt and has $4.7B in cash from sales of shares, you should do some research before saying they are already in debt
All good except you forgot to cite your source. Based on what? You're assumption? You've been saying this for years now. Aren't you tired yet? And one more. GME has been struggling financially to keep afloat for years. It was on the verge of going bankrupt not too long ago.