Who the fuck is giving him money for free
not everyone is playing the same game
>>59248384Have an established cash flow positive hundreds million revenue business with a perfect credit rating.Jews will suck your dick to take their fiat.
>>59248384So here is how it worksSaylor/MSTR issues shares to the market.people pay fiat for the sharessaylor/MSTR buys BTC eith FiatEVEN if the BTC market crashes MSTR is under no obligation to buy the shares back or do anything. It may mean the shares go to zero, but MSTR still has the BTC and does not need to sell.Since MSTR is debt free.From the share buyers persepective, its a futures buy option on the future price of BTC without the hassle of an ETF and all the complinace problems.So say a typical regulation is some pension or .gov fund says you cannot infest more than 5% into a crypto or etf, suddenly you can just go an buy shares in this compnay that just holds crypto/BTC.This is starting to look like a one way event horizon thing.people buy shares, saylor buys crypto, price of crypto goes up, people buy more shares repeat, so it becomes a massive fiat transfer to for ever less BTC sold for said crypto so sees a massive wind up in price.Becuase there is no counterparty in BTC risk, Fiat has a problem, is can only loose infinite value.
God.
>>59248453one slight error I think MSTR also has convertable bonds out which changes ther picture a bit.Still I think for the most part - MSTR does not have to sell.
>>59248384probably Bank of America or something
>>59248453Assuming bitcoin crashes under his dca and mstr crashes by 80%There SURELY would be a problem somehow
Mstr will keep climbing until bitcoin hit 100k, once it does the overall market will panic because they don't have another milestone to look forward to and it'll crash until they hype up "btc 150k goal" and start the process again. Time is a flat circle.
>>59248482MSTR pays a dividend so they still need net income just to meet operational costs + cost of dividends.I could be and probably am missing something but not only is there the inherent risk of the company going down but also bitcoin crashing.Seems like a plan that’s completely reliant on bitcoin doing well
>>59248542Why? The bitcoins are on the blockchain, that means they own them.
>>59248542>minimal debt>MSTR to bitcoin value returns to ~1:1 or lower until the next bull run>nothing breaks
>>59248384It's some weird shit with options traders and people betting on volatility, there is a non-0 possibility he will be able to borrow at negative rates soon lol.
>>59248482>I thinkcollapse gong be glorious
Corporations do something similar all the time. They issue new stock and use it like cash to buy smaller companies. It dilutes the existing stock, but as long as the company that the corporation acquired is profitable, nobody cares. It is almost like a free money glitch except it ultimately depends on the acquired companies continuing to be profitable. If the company stops being profitable, the dollar value of shares plummet and the stockholders suffer and take it out on the corporate directors.
>>59248772They tried to finish off MSTR with the 15k bitcoin crash, didn't happen, he's untouchable now
>>59248453>>59248781these aren't shares, they are convertible bonds.There is a huge market of people who can only by convertible bonds (you get a bond that has a % base return as the floor, or can be converted to the stock), mstr has insane returns so they are able to sell to these people with 0 interest because they will just convert to stock. Eventually they may start paying MSTR to get the bonds w/ negative yield. That's my understanding atleast. (the % apr of the loan is just the base return of the bond if it is not converted to stock) There is also some weird shit w/ people doing options stuff where it's so volatile they are able to profit of the volatility so they don't need to profit off the yield from the loan. complicated finance crap
>>59248655>MSTR pays a dividendNo.
>Bitcoin goes up>MSTR goes up>MSTR uses money that went up to buy more bitcoins>Bitcoin goes up>repeat processIt's a loophole
>>59248453You're forgetting an important fact. He isnt selling these to retail investors or hedge funds he is targetting specific funds who can only buy Bonds, for those this is unprecedented because they have never seen such volatility and upside EVER. MSFT bonds are providing these funds insane Vol and they cant get enough of it
>>59248887Main problem is that they need to actually find sellers that can give them sizable amounts of bitcoin that makes the transaction worth doing.
>>59248914A common trade has been ‘Short MSTR/Long BTC’, when mstr retard pumps saylor can dump shares at a premium to the blown out shorts while slurping the btc dip caused by the short sellers unwinding their hedge
