This, this and this. MSTR is in a pure gambling position that probably only works if Bitcoin exceeds some minimum gain...when it doesn't those loans and whatnot will make them insolvent. So it's already a greater than 50% chance they fail fundamentally, unless Bitcoins value isn't priced in (unlikely with the ranging and pegging to western markets) It's a borderline ponzi scheme...how many times have we seen a similar story of failure after a delusional run up that didn't seem fundamentally sound? Common sense will prevail, just like GME, DJT, BBBY (already in the coffin) - all cult movements with irrational logic WILL surge but reality will catch-up. Based on my studies about 4-10X excursion from reality is to be expected. Greed and groupthink is moving them...and then greed will cause the smart ones to sell at 4-10X and leave a bunch of whiney desperate cognitively dissonant bag holders. Lookup the YouTube "the cult of the dead stock" to see what I mean. That may take a few years to catch-up though.
Tesla is a fun story too. It's a bit MSTR and cult like but not fully. People hang on Musk's words treating him like a Messiah and believe delusionally he's out to make everyone rich like Robin Hood is hilarious because he's the one screwing everyone. I'm pretty sure he's on many drugs by the way he acts. People love a charlie sheen character. On the other hand electric cars and the scale needed to make them affordable was a sound idea...and the high 0-60 acceleration and other features do make sense and add value. Unfortunately it's not better for the environment without major advancements in battery technology, which may someday soon come. A super quick charging, carbon based battery for instance. Until then Tesla's only hope for long term survival is making cars in india or Africa (China's China) or the robotaxi move... I can gaurantee you my children in 20 years won't need to drive a car, similar to how they get an Uber today. Everyone wants to press the service model and deny people ownership of anything... This is our dystopian future. But I'm not sure if it will be Tesla as is. So their showing flopped and that's why the stock tanked recently. What else happened? Hybrid came and ate his lunch, ensuring sales will continue to fall, especially as arrogant Karen owners realize a paint job or fixing any damage costs $5000 minimum due to the material used and other flaws. Hybrid simply makes more sense today, especially with limited resources for lithium cobalt etc. The story isn't black and white, I can admire the gumption to do things against tradition, so the story is mixed. But plenty of groupthink making the stock pump and dump
Do you think the Norweigan central bank and the Swiss national bank bough the mstr shares for the meme or the cult? What about the pension funds that are buying or have bought mstr? meme or cult? or both? Maybe you should check out the 13F filings for a little bit of research on the institutional investors acquiring the mstr stock I think on their investor letter they state the reasoning, meme, cult or both
No clue, but where firms see an opportunity doesn't invalidate my theory. Perhaps they are technical based firms or they're trying to take advantage of the groupthink because they are upside potential, or maybe it's even a hedging and diversification opportunity. The market will always be a tug of war, since if it was obvious, we would settle on price and have 0 Volatility... No one 'knows'
But you know that the mstr value is only for meme or cult and with that logic the investment managers at 2 central banks see opportunity to invest in that
There is always opportunity (risk) with any volatile item. And these are more progressive banks and I believe they're also allowed to speculate. My contention is that it will blow up in its face if Bitcoin takes a big enough down swing. Maybe in 1-3 years
It's pure gambling on the fact they are borrowing billions and billions to buy bitcoin hoping and praying it continues to rise as the debt they are taking on eventually has to be paid back....its going to work until it doesn't and only a few will know this.....its seems like everything mstr was is no longer, it's as if their many components of what their business profile was is no longer. Right now they are just a bitcoin holding company, earnings from their actual business has gone no where, last earnings were absolutely trash but because bitcoin is now on their balance sheets earnings are no longer even cared for.... This will be one major story once it unfolds, right now as mstr powers higher everyone thing it's going to be a non stop run away train....thank.you for your input ...
Yea, it does seem like mstr is a group think and meme and cult, but yet no one you know have talked about mstr, and you yourself did not know about it But mstr is the only stock that has outperformed every single company in the s&p 500 since they adopted bitcoin treasury and is also the only stock that has outperformed nvda yet, google search for mstr is low, and until recently with all my bull posting on ET, hardly anyone talked about mstr here on the leading trading and investment site and if you look at the best performing bond funds of the last 3 years, you will see those invested into mstr debt I get it now, mstr is one of those under the radar, underground cult, no one knows about, no one talks about, and yet outperforming everyone in equity and debt markets definitely game stop, amc, bbby type of mania
MicroStrategy, a former business software firm that now calls itself a Bitcoin development company, Thought this was hilarious, no longer is MSTR a "software firm" but now calls itself a "bitcoin development company", yepp anything they can do to keep the hype going. Im telling you we are probably only months away from other publicly traded companies doing the same exact thing. I wouldn't doibt this takes off and literally companies like game stop, and even penny stocks start literally buying up bitcoin and becoming now a "bitcoin development company" imagine if intel announced it was buying bitcoin this week, the stock would literally catapult to 52 week highs and probably surpass their old market capitalization and probably be the biggest semi bitcoin development company in the world on its way to a trillion dollar market cap. Im telling you companies are going to be jumping in on this trend and will start swalling up bitcoin like there is no tomorrow!! If nvdia did this or even apple there stocks would be worth 10 trillion in a single year!! this is going to be a gigantic bubble once this catches on! But yes look for companies to start adding bitcoin to their balance sheets very very very soon MicroStrategy premium rises MicroStrategy premium has increased, with MSTR stock rising 11% to a 25-year high, well-surpassing Bitcoin's 3% rise. MicroStrategy, a former business software firm that now calls itself a Bitcoin development company, owns 252,220 BTC worth almost $9.9 billion at a price of nearly $39,266 per Bitcoin as of Sept. 20, 2024. MicroStrategy's net asset value (NAV) premium has reached 2.5 times its Bitcoin holdings, the highest since February 2021. Not only is the NAV multiple at its greatest level in years, but dividing the MicroStrategy stock price by the Bitcoin price yields 0.0030. This is the highest ratio since MicroStrategy began adopting Bitcoin in August 2020. MicroStrategy raised its "Bitcoin Yield" KPI to 5.1% from 4.4% in Q2, 2024.