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You are asking "why btc". You have read Lyn's post on QE - great! Here's how I view it, and I believe Saylor as well: cash loses double digit % purchasing pow

by hfsp 6y ago

You are asking "why btc". You have read Lyn's post on QE - great! Here's how I view it, and I believe Saylor as well: cash loses double digit % purchasing power annually for the things you want to buy and hold. You can hold on to your melting pile of cash, or you can deploy that capital elsewhere. Art, wine, stonks, negative/0 yielding bonds, real estate, crypto kitties, or an asset that has been appreciating at a clip of 200%/yr. Question is not why btc, but why would you put yourself at a disadvantage by holding fiat reserves.

christiansakai 6y ago
The question is "Why BTC".
runako 6y ago
None of these are the real question as regards a publicly traded company in the business software space. The better questions are: - Why is the Company holding so much cash? Most companies do not hold 60% of their market value in cash or other assets unrelated to their core lines of business. Why is MicroStrategy making this choice? - Why will the Company not return the excess cash to shareholders instead of running an investment book on the side? - Revenue is declining in a market that is experiencing growth. Why is management focused on the minutiae of treasury management instead of fixing the core business? It's not fiat vs BTC, it's about why is the company holding so much cash in the first place?
- stickfigure 6y ago
  It's even worse than that. This isn't cash MSTR has on hand; they're raising new cash by issuing convertible bonds. As an investor, if I want to bet on BTC, I can just buy BTC. Why would I buy this weird hybrid of business intelligence software company and holding company?
  - runako 6y ago
    Borrowing money to buy BTC is...something. I'm surprised the board lets any of this fly.
- hfsp 6y ago
  "Why is the Company holding so much cash? Most companies do not hold 60% of their market value in cash or other assets unrelated to their core lines of business. Why is MicroStrategy making this choice?" Savings helps prepare for an uncertain future. There may be unforeseen expenses, or an unexpected investment opportunity. Why will the Company not return the excess cash to shareholders instead of running an investment book on the side? Return cash to the shareholder puts company at risk of decapitalization. On downturn, company is left to beg for money printing and/or bail out from the fed to keep stonk price up. MSTR offered to buy out investors at premium prior to buying btc. Any investor who kept or acquired MSTR has done very very very well. Revenue is declining in a market that is experiencing growth. Why is management focused on the minutiae of treasury management instead of fixing the core business? I don't claim to know the details of their B2B software business. Characterizing adopting a btc treasury reserve standard is not a "minutiae". This is a YUUUGE move that not only affects MSTR, but btc, and other publicly traded companies. The corps are here. Brace yourself.

by hfsp 6y ago

christiansakai 6y ago

The question is "Why BTC".

runako 6y ago

None of these are the real question as regards a publicly traded company in the business software space. The better questions are: - Why is the Company holding so much cash? Most companies do not hold 60% of their market value in cash or other assets unrelated to their core lines of business. Why is MicroStrategy making this choice? - Why will the Company not return the excess cash to shareholders instead of running an investment book on the side? - Revenue is declining in a market that is experiencing growth. Why is management focused on the minutiae of treasury management instead of fixing the core business? It's not fiat vs BTC, it's about why is the company holding so much cash in the first place?

stickfigure 6y ago
It's even worse than that. This isn't cash MSTR has on hand; they're raising new cash by issuing convertible bonds. As an investor, if I want to bet on BTC, I can just buy BTC. Why would I buy this weird hybrid of business intelligence software company and holding company?
- runako 6y ago
  Borrowing money to buy BTC is...something. I'm surprised the board lets any of this fly.
hfsp 6y ago
"Why is the Company holding so much cash? Most companies do not hold 60% of their market value in cash or other assets unrelated to their core lines of business. Why is MicroStrategy making this choice?" Savings helps prepare for an uncertain future. There may be unforeseen expenses, or an unexpected investment opportunity. Why will the Company not return the excess cash to shareholders instead of running an investment book on the side? Return cash to the shareholder puts company at risk of decapitalization. On downturn, company is left to beg for money printing and/or bail out from the fed to keep stonk price up. MSTR offered to buy out investors at premium prior to buying btc. Any investor who kept or acquired MSTR has done very very very well. Revenue is declining in a market that is experiencing growth. Why is management focused on the minutiae of treasury management instead of fixing the core business? I don't claim to know the details of their B2B software business. Characterizing adopting a btc treasury reserve standard is not a "minutiae". This is a YUUUGE move that not only affects MSTR, but btc, and other publicly traded companies. The corps are here. Brace yourself.