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-Michael Saylor’s strategy: MicroStrategy is not forced to be a Bitcoin seller. The reason why the stock price can fall more deeply than the price of Bitcoin is explained by the company’s capital structure “amplification” mechanism, designed to deliver higher performance when the market rises and to move more sharply when the market corrects.
-Goal of increasing Bitcoin per share: Instead of paying dividends, the company focuses on increasing the number of Bitcoin it holds per share by issuing debt, equity, and a “digital credit” model.
-🚨Countering the dilution narrative: Saylor and CEO Fong Le argue that issuing additional shares is not dilution if it’s used to buy Bitcoin or to repurchase debt at a discount, because this increases the value of Bitcoin per share.
-Lessons from the drop: The company learns the importance of maintaining cash reserves (US dollars) as backing for dividends and to build confidence among institutional investors.
-Macro view: Saylor believes that, given the United States’ $40 trillion debt, borrowing in devaluing currency (fiat) to invest in scarce assets like Bitcoin is a rational financial strategy.$BTC #laxonoong
-Michael Saylor’s strategy: MicroStrategy is not forced to be a Bitcoin seller. The reason why the stock price can fall more deeply than the price of Bitcoin is explained by the company’s capital structure “amplification” mechanism, designed to deliver higher performance when the market rises and to move more sharply when the market corrects.
-Goal of increasing Bitcoin per share: Instead of paying dividends, the company focuses on increasing the number of Bitcoin it holds per share by issuing debt, equity, and a “digital credit” model.
-🚨Countering the dilution narrative: Saylor and CEO Fong Le argue that issuing additional shares is not dilution if it’s used to buy Bitcoin or to repurchase debt at a discount, because this increases the value of Bitcoin per share.
-Lessons from the drop: The company learns the importance of maintaining cash reserves (US dollars) as backing for dividends and to build confidence among institutional investors.
-Macro view: Saylor believes that, given the United States’ $40 trillion debt, borrowing in devaluing currency (fiat) to invest in scarce assets like Bitcoin is a rational financial strategy.$BTC #laxonoong