Dr Alliance on Nostr: Its easy to underestimate the strategy that Michael Saylor has put in place. We have ...
Its easy to underestimate the strategy that Michael Saylor has put in place. We have never seen it before. How do you value a firm that owns 1% of a new global paradigm? The best I can do is come up with an analogy.
How valuable is a firm that identifies the best 1% of the world’s farmland and buys it? How much better is that firm when it identifies the best 1% of the world’s art and buys it. What about 1% of trophy real estate and collectables and commodities and …. If Dan Moorehead is right and Bitcoin is the apex predator, then Bitcoin will dematerialize asset class after asset class and draw that value into Bitcoin. That is what makes MSTR so hard to value. No firm has ever held an 1% of the world’s supply of an asset that can accomplish this task.
Hold on, we are not done yet. Imagine that this hypothetical firm is an expert in developing enterprise software expertise. The firm focuses this expertise on improving the acceptance and usability of Bitcoin. It is also leveraging its salesforce to sell this software to the largest firms on the planet. They, in turn, use the software to benefit their global customers. What is the value of a firm that can both hold 1% of a new asset class and simultaneously use its software expertise to improve the value of that asset class?
What about metrics? Wall street’s metrics are optimized to value traditional firms in analog business. They are not designed to value a paradigm shift. Maybe there is only one metric that actually gauges the value of MSTR. That metric is sats/share. It makes sense given that MSTR has only two uses of funds; paying operating expenses and sweeping its excess cashflows into bitcoin. That appears to be the metric that Michael Saylor uses. That is the metric I use now.
Are there threats? I see only one. MSTR and the custodians that hold Bitcoin for the ETFs are honeypots. If the government faces a currency crisis, they may (will?) confiscate the hardest asset on the planet and use it to back their fiat currency. It happened with gold. It could happen with Bitcoin.
In summary, I have been in business a long time. I hold multiple degrees in management and in technology. I am humbled by Michael Saylor’s insights and his ability to execute them.
How valuable is a firm that identifies the best 1% of the world’s farmland and buys it? How much better is that firm when it identifies the best 1% of the world’s art and buys it. What about 1% of trophy real estate and collectables and commodities and …. If Dan Moorehead is right and Bitcoin is the apex predator, then Bitcoin will dematerialize asset class after asset class and draw that value into Bitcoin. That is what makes MSTR so hard to value. No firm has ever held an 1% of the world’s supply of an asset that can accomplish this task.
Hold on, we are not done yet. Imagine that this hypothetical firm is an expert in developing enterprise software expertise. The firm focuses this expertise on improving the acceptance and usability of Bitcoin. It is also leveraging its salesforce to sell this software to the largest firms on the planet. They, in turn, use the software to benefit their global customers. What is the value of a firm that can both hold 1% of a new asset class and simultaneously use its software expertise to improve the value of that asset class?
What about metrics? Wall street’s metrics are optimized to value traditional firms in analog business. They are not designed to value a paradigm shift. Maybe there is only one metric that actually gauges the value of MSTR. That metric is sats/share. It makes sense given that MSTR has only two uses of funds; paying operating expenses and sweeping its excess cashflows into bitcoin. That appears to be the metric that Michael Saylor uses. That is the metric I use now.
Are there threats? I see only one. MSTR and the custodians that hold Bitcoin for the ETFs are honeypots. If the government faces a currency crisis, they may (will?) confiscate the hardest asset on the planet and use it to back their fiat currency. It happened with gold. It could happen with Bitcoin.
In summary, I have been in business a long time. I hold multiple degrees in management and in technology. I am humbled by Michael Saylor’s insights and his ability to execute them.