Although I fully understand how these past few years, the game has all been about screwing a whale, and it has been very successful, I do wonder if its possible with something like bitcoin. Yes the price is dropping, but given how much of it is in offline storage, its not just a matter of hedge funds that need to get together and program their algos to start selling in unison in order to take out a whale. I realize that at any one exchange, perhaps you only need to sell a few thousand bitcoin in order to cause a fairly large price drop, but many people are true hodlers, and as we drop lower, more and more will likely want to load up. Of course 20k is not that far away, and I'm by no means saying it can't happen, but I feel like this market is a bit different than any other so called regulated market on some exchange where all the major players need to report positions, which makes it very easy to leak this info to other parties and hence its much easier to carry out a coordinated manipulation attack. The lower the bitcoin price goes, the more individual investors might want to start nibbling. If they take their bitcoin offline, which is what should be done, perhaps the exchanges themselves will start to become extremely short of supply. At some point, the so called "smart" money doing all the selling will have to re-evaluate if continuing to sell off their bitcoin to others who want to hodl it is a smart move. I personally don't want to see a 5k bitcoin, and hence lose considerably on what I have, but then I can purchase an entire coin, and I absolutely would. How many other people must be in this same boat, who are just waiting to load up? I said it in another thread, and I'll say it here again. If all those addresses with 10,000 coins sell half, and thousands of people load up and get to have an entire coin, will this not be the best case scenario for distributing wealth and preventing further attack on bitcoin in the future? When the coins are more and more distributed amongst the population, doesn't this mean a brighter future for bitcoin?
i don’t understand why shareholders haven’t revolted. Microstrategy’s business isn’t Bitcoin. This is what’s wrong with non-independent boards and passive shareholders.
From other sources I've read, BTC would have to fall into the single digits before margin calls would be carried out. As usual, people can't get their facts right.
40% of bitcoin investors are now underwater, new data shows https://www.cnbc.com/2022/05/09/40percent-of-bitcoin-investors-underwater-glassnode-data.html
Thx, I may short MSTR if it gets under 200... (not a recommendation) https://www.cnbc.com/quotes/MSTR
guys...calm down. The loan is for 205 million and they have about 5billion worth of BTC right now. Yes, at 21k MSTR will be called for additional margin, so what. He just posts an additional 200 BTC as margin. MSTRs liquidation price is around 3.5k. I hope a lot of people are shorting MSTR because they blindly follow the headline. BTC will nuke sub 30k but to me it looks like a good trade to buy it once crypto has flushed out. MSTR is basically a BTC ETF that has a huge expense ratio because interest has to be payed on the loan. Sailor creates a massive leveraged bet since he uses BTC as collateral for loans to buy more BTC. And at the same time he lends out BTC to generate interest...which probably covers the interest on his loans. As long as he keeps doing this for a cost of net zero, he'll be fine and MSTR will have a massive BTC position once crypto pops back up. He might look like a maniac to many, but what he's doing is actually pretty smart. Don't think that all he does is buying BTC to keep it on a Ledger. My bet is that he want's to turn the company into a crypto bank. BTC interest rises once it goes down because the short - sellers need to borrow it -> BTC down, interest up, BTC up -> profit from price. And by the way...you still can sell juicy call premium at right now 80% implied.
He should have bought Silvergate with MSTR stock when the Reddit lunatics pushed his stock $1300+. Microstrategy's core business is dying and they are overvalued with a $50M EDITDA vs. a $2.6B valuation. I mean they sell at 5X revenue and 52X EBITDA. Unless deflation comes back soon this will fall probably another 50-60% since I doubt it is worth more than 20X EBITDA.
129,218 x 30,000...that still looks like 3.8B to me and their valuation is 2.6B If you argue like that, it's a strong buy. Who gives a fk about his core business when all he does is buying BTC right now