Ok so you tell me if this makes sense for MSTR being an infinite money hack. Here's the steps:
- MSTR buys bitcoin
- Bitcoin goes up in value
- MSTR stock goes up in value
- Saylor dilutes the shares by selling equity (or takes out a loan).
- The stock temporarily goes down.
- Repeat
If he just bought bitcoin once, it'd be a bitcoin etf. Since he keeps on buying bitcoin, it's like a levered bitcoin stock where it outpaces bitcoin because the fund continues to acquire more! The crazy thing is that it can keep going till Bitcoin's price flattens out as a store of value (kinda like the gold price now).
This only works cause bitcoin is "number go up technology". The thing is, you and I don't have access to infinite capital. As the bitcoin price goes up, he gets more access to capital and it's a feedback loop that just keeps generating money!
Next quarter they'll qualify for the S&P 500 meaning people will passively be contributing to the stock price! So he's like a bitcoin fund that takes money from shareholders, puts it into bitcoin, and it generates more wealth than just bitcoin itself!
Microstrategy is a vortex sucking fiat into bitcoin. Bitcoin naturally trends towards sucking up fiat over time, and Michael Saylor is accelerating this with his company.
I encourage y’all to check out the chart comparing the price action of bitcoin to MSTR.
Edit: Here is the chart comparing Bitcoin’s price action to MSTR (and the NASDAQ).
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