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94 sats \ 14 comments \ @grayruby 5 Apr 2023 bitcoin

I am a fan of what Saylor is doing essentially turning a dying software business into a Bitcoin fueled rocketship but the way he is doing it is not a model for other corporations, which is what I had hoped MSTR would be when they first started stacking.

I agree with his thesis and bet obviously, but the strategy looks more like a levered hedge fund strategy rather than a treasury strategy.

Just an observation.

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633 sats \ 0 replies \ @spraveenitpro 5 Apr 2023

Got a 22 % discount for his loan with silvergate like a chad!

27 sats \ 2 replies \ @DarthCoin 5 Apr 2023

My take on Saylor:

He's a good bitcoiner, no doubt. Sounds like a bitcoin maxi, but he's not. In some way is understandable, for his position, still can't be that "Bitcoin only" use, he still have to play in the fiat world with his company.
He use Bitcoin as an investment rail for his company. Is good and bad. But at least is using BTC as company reserves. And that is good.
I heard that MSTR is working on an implementation of BTC into their software. And that is great.
I know for a fact more companies like MSTR using BTC as company funds reserves. Why? Because long time ago (2015-2017, even when the BTC price was waaaay lower) I was convincing them to start accumulating BTC as reserves. And some of them they were accumulating maybe even more than Saylor have today, in all these years. But they are keep a low profile, not like Saylor (aka Bitcoin marketing department).

So don't consider MSTR/Saylor as the only companies holding big amount of BTC. There are many others out there, ready, prepared for what is coming.

But in the end, Saylor is doing great work for Bitcoin. Let's be sincere with that.

33 sats \ 1 reply \ @grayruby OP 5 Apr 2023

Agreed. I just don't see many corporations adopting this specific strategy. Maybe some will decide to take a small percentage of reserves and put into bitcoin and maintain that percentage buying more as they generate free cash flow, which is what I originally thought Saylor's strategy was going to be.

10 sats \ 0 replies \ @DarthCoin 5 Apr 2023

We don't see them "publicly" announcing, but there are doing it, OTC, slowly, in silence. But only those with smart people as managers. Why? Because many know that when the time is coming, they would need those reserves to pay their employees.

162 sats \ 0 replies \ @FullTimeBitcoin 5 Apr 2023

They've been issuing shares to buy more bitcoin. While that's traditionally dilutive in this case if you're buying MSTR for bitcoin exposure it's actually accretive with each share indirectly controlling more BTC (since it's trading at the equivalent to a discount to it's NAV). I'd call it a just a better GBTC / better BITO. No fees, and as long as the market disagrees that it's a good idea and undervalues the bitcoin it's leveraged.

43 sats \ 3 replies \ @siggy47 5 Apr 2023

I agree. It's almost a de facto etf at this point. He did have ambitions to educate corporations in 2021, but the ridiculous US tax laws really prevented many corporations from adding bitcoin to the treasury. Basically, publicly traded companies have to "mark to market" bitcoin whether or not they sell the asset. Imagine if treasuries were accounted for the same way? Every bank in the country would fail immediately.

243 sats \ 1 reply \ @FullTimeBitcoin 5 Apr 2023 freebie

This is almost a moot point, FASB officially proposed exact rule changes Saylor has been advocating for last week. Will take effect by year end.

https://dart.deloitte.com/USDART/home/publications/deloitte/heads-up/2023/fasb-asu-crypto-asset-guidance

10 sats \ 0 replies \ @siggy47 5 Apr 2023

This is good news. Now watch Elizabeth Warren try to prevent it.

0 sats \ 0 replies \ @grayruby OP 5 Apr 2023

Good point on tax treatment. Hopefully this changes over time.

20 sats \ 1 reply \ @DarthCoin 5 Apr 2023

https://i.postimg.cc/pr37dFKg/saylor.jpg

😂😂😂😂😂

0 sats \ 0 replies \ @Neo 5 Apr 2023

😂

0 sats \ 0 replies \ @kxdemon 6 Apr 2023

Saylor is just a puppet, look who really owns the shares of the company. The company's representatives own only 0.08%. The rest of the shares are owned by funds. You know who is actually behind them. Now think about why and who is buying up all the bitcoins through this proxy. https://finance.yahoo.com/quote/MSTR/holders?p=MSTR

0 sats \ 0 replies \ @gmd 5 Apr 2023

Curious does anyone know anyone that actually uses their software services?

0 sats \ 0 replies \ @POTUS 5 Apr 2023

It is a strategy for private corporations mainly as they are small enough and have few enough decision makers to pull it off. Saylor and MSTR are anomalies in public corpo world