Sometimes when legacy media columnists opine on bitcoin they collapse spectacularly in a pretzel twist of their own making.
First, the market is crazy for taking MSTR's convertible bonds at 0% interest. (Why that's a fault of Saylor's or the company isn't explained... if you or I could get free money from the world's financial markets, why wouldn't you? Hashtag speculative attack).
Second, the author objects to MicroStrategy's failing legacy business that's apparently "bleeding cash and shrinking by the quarter." (Don't know, did not verify. Stackers will call me -- or Coben -- out in case this is incorrect.)
And then, straight after, without considerations of self-contradiction, objects to MSTR moving with the bitcoin price:
But MicroStrategy isn’t so much a software firm these days. It’s best described as an insatiable buyer of bitcoin.
The company’s playbook is simple. MicroStrategy sells shares and convertible bonds to buy bitcoin. The purchases help support bitcoin’s price, which lifts MicroStrategy’s stock price. Then MicroStrategy sells more shares and convertibles off the higher price to buy more bitcoin. Wash, rinse, repeat.
Perpetual motion machines are unreal, and the amount of bitcoin MSTR is buying is hardly enough to move the worldwide bitcoin price. Plus, one would assume, BTC moved well before -- and in response to its own dynamics (read: post-halving squeeze or election) -- MSTR were doing anything this huge.
Anyway, pretty ridiculous to first accuse a company for no longer flourishing in their legacy business and then object to it moving in tandem with the new asset it has stacked on its balance sheet. Yeah, no shit MSTR's stock price is going to move with BTC now that MSTR consists mostly of leveraged bitcoin.
Jeez, what a silly take.
Archive access here: https://archive.md/QAKhT
