RE: MicroStrategy Admits It Might Need to Sell Bitcoin by 2026
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I don't think this is really cause for alarm. Companies and CEOs sell stocks all the time for a wide variety of reasons. It's all part of the process I think.
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Yeah I'm thinking by then there'll be a lot more companies wanting some bitcoin.
For sure!
Maybe, maybe not, but what's at issue is if the price of BTC dips too much, his creditors will come calling and he will have to sell BTC to pay them. That could very easily put his company in a death spiral as other investors decide they want out. Short term this would also affect the price of BTC, since MSTR is the biggest company buying it. Long term it will probably have no effect. But that's why I write it is probably safer for us to buy BTC directly and avoid MSTR.
In most cases, yes, but with Saylor, the entire value of his company is based on his BTC buys. To raise money for his BTC buys he is offering convertible notes, basically IOUs to be cashed if the price of BTC or his company drops. All it is going to take is one domino for his entire scheme to collapse.
Ah okay. Well that could be bad then! I don't understand it all, but I trust you.
It will be a problem at some point 100%. Some of us dare say it’s gonna be what FTX was in late 2022 or what bitconnect was in 2028 or Gox was to 2014. Not due to crimes unlike others but just because it mathematically won’t work long term. His rates aren’t almost zero but with global market anxiety and what not I could see something breaking that effects everything and we could see who knows what happen liquidity wise. Maybe it takes a decade and I’m wrong on it being a key fail like other 3 examples but it just doesn’t make sense. The whole appeal to traders was it will perform better than bitcoin because leverage and that’s a dangerous game. Even with the incredible low rate he gets and it’s insanely close to zero. Doesn’t matter, it’s not going to last. People should just buy and hold. The shortcuts never work. It just has a better rep because it’s a legit platform being traded on the major USA stock Index.
Sorry for going long 🤣 tried new coffee and it’s fire 🔥 👍