Darren Easton on Nostr: MicroStrategy’s $MSTR strategy is a major boost for #Bitcoin and miners. Here’s ...
MicroStrategy’s $MSTR strategy is a major boost for #Bitcoin and miners. Here’s why:
1. $MSTR buys BTC, reducing market supply → BTC price rises
2. Investors FOMO into $MSTR → share price climbs
3. Higher share price = Saylor issues more equity/convertible debt, accessing cheap capital
4. $MSTR uses that capital to buy more BTC
5. Repeat steps 1-4, creating a self-reinforcing cycle
6. Rising BTC boosts miner profits
7. No miners = no new BTC supply for $MSTR or anyone else to buy
It’s a win-win for the whole Bitcoin ecosystem!
1. $MSTR buys BTC, reducing market supply → BTC price rises
2. Investors FOMO into $MSTR → share price climbs
3. Higher share price = Saylor issues more equity/convertible debt, accessing cheap capital
4. $MSTR uses that capital to buy more BTC
5. Repeat steps 1-4, creating a self-reinforcing cycle
6. Rising BTC boosts miner profits
7. No miners = no new BTC supply for $MSTR or anyone else to buy
It’s a win-win for the whole Bitcoin ecosystem!