The price of MicroStrategy stock surging above $200 last week, the MSTR bulls were out in force last week, insufferably posting about how Michael Saylor’s tech firm, a once dead tech company from the dot-com era, will outperform everything again this cycle.
Look, I’m not going to even start parsing the hokum. You can follow BitPaine, Dan Hillery, or one of the hundreds of Bitcoin X accounts which now comprise the MSTR bull twitterverse.
There’s videos, threads, and of course, a lot of people who are irresponsibly long…
But the general gist is this:
- Michael Saylor’s has decided to buy over 200,000 BTC, and to keep buying Bitcoin until the fiat system collapses. He will continue leveraging cheap debt to do this, which he can borrow because this is how the fiat system works, infinite money glitch.
- This will make his company more valuable than other companies – since it offers exposure to a valuable and scarce commodity (Bitcoin), but with added beta due to the companies existing profitable product suite. Said another way, as the Bitcoin they accumulate gains in value, Microstrategy stock will look undervalued compared to the underlying collateral.
- Since BTC won’t go to zero, and the Federal Reserve has to keep cutting rates (boosting stocks), this is a perfect storm for MSTR, and it will benefit from the liquidity injection and outperform Bitcoin even as Bitcoin enters its 4-year cycle … blah blah blah.
This is my best attempt to repeat this thesis, I wrote it in 2 minutes. I refuse to even copy edit it. The gist is companies that some people believe buying Bitcoin stock can outperform Bitcoin for some reason, and that this isn’t speculation, but morally aligned Bitcoin maximalism, or something…
Maybe Dylan LeClair can explain the math to you. He’s tried with me multiple times, and I’ve never understood anything more than the above. Amount of Bitcoin the company owns per share = good. No Bitcoin divided by shares = bad.
So, why did I buy MSTR? Short story, I had money in my 401(k) that I can only invest in regulated investments. (Yes, that means I own Bitcoin ETFs as well.)
But that’s not really the whole story. Really, I’m just tired of watching the MSTR bulls be right about whatever it is they are talking about, and want some skin in the upside. Should I have done some diligence here? Should I have some hypothesis? Shouldn’t I just be HODLING?
Maybe, but have you considered Michael Saylor, bull, bull, bull?
