praxeologist on Nostr: I came across the following opinion on Bitguide's persian telegram channel. Since it ...
I came across the following opinion on Bitguide's persian telegram channel. Since it wasn't shared in nostr, I thought I'd post it here.
"The more you look at MicroStrategy’s balance sheet, the more it starts to resemble a shitcoin or a Ponzi scheme.
If you buy shares of this company today, you’re essentially paying three times the value of the actual Bitcoin it holds. In other words, its market cap is three times its assets.
Investors are willing to pay this premium because they believe the company can keep getting cheap loans over a long period to buy more Bitcoin, which will drive its stock price higher, allowing them to sell more shares, raise more funds, buy more Bitcoin, and so on—continuing the cycle.
There’s just one issue here: the company’s operational side, which is supposed to generate revenue, is actually losing money, even though it’s in the profitable software industry. Essentially, they’re running a dying software business expected to cover all this debt. There’s a chance they won’t be able to borrow so easily in the future, which would weaken their growth. In that case, the three-times premium investors paid could revert back to a one-time premium, and two-thirds of their money would be gone."
source: https://t.me/SatoshiSchool/2612
Bitguide on nostr: npub1as5v2y7z8lhtad3jx04u2cj4u4j82565h0twh2avkzsyntrzhz0qankkzd
#grownostr #MicroStrategy #Bitguide #Bitcoin #SelfCustody #ponzi #FinancialAnalysis #investment #risk
"The more you look at MicroStrategy’s balance sheet, the more it starts to resemble a shitcoin or a Ponzi scheme.
If you buy shares of this company today, you’re essentially paying three times the value of the actual Bitcoin it holds. In other words, its market cap is three times its assets.
Investors are willing to pay this premium because they believe the company can keep getting cheap loans over a long period to buy more Bitcoin, which will drive its stock price higher, allowing them to sell more shares, raise more funds, buy more Bitcoin, and so on—continuing the cycle.
There’s just one issue here: the company’s operational side, which is supposed to generate revenue, is actually losing money, even though it’s in the profitable software industry. Essentially, they’re running a dying software business expected to cover all this debt. There’s a chance they won’t be able to borrow so easily in the future, which would weaken their growth. In that case, the three-times premium investors paid could revert back to a one-time premium, and two-thirds of their money would be gone."
source: https://t.me/SatoshiSchool/2612
Bitguide on nostr: npub1as5v2y7z8lhtad3jx04u2cj4u4j82565h0twh2avkzsyntrzhz0qankkzd
#grownostr #MicroStrategy #Bitguide #Bitcoin #SelfCustody #ponzi #FinancialAnalysis #investment #risk