MicroStrategy

“Obviously, people are dunking on this because the stock has traded down 50% since this was published.”

“The idea, like, from what I understand, microstrategy is effectively issuing debt to buy, to go in the market and buy more To go to buy more like crypto and they just keep doing it. But if that reverses, eventually got paid on the debt. I don't know. It just s…”

“The reason that MicroStrategy stock exists, right, is because there's a lot of fund managers Right. Who would love to invest in Bitcoin, but it's just too fucking painful that for them to deal with it with their funds. And so micro strategy is just this hack f…”

“Financial strategy of taking out billions of dollars in loans and then trying to corner the market and be the largest shareholder of Bitcoin, which is antithetical to the concept of Bitcoin, somebody cornering the market, also taking out loans and something th…”

“Then I looked at micro strategies and that made no sense to me that they were trading at two, three, four times The book value of their Bitcoin. And I think that's not sustainable.”

“He's really running their Bitcoin position, and he's created this massively levered long Bitcoin play. He's borrowing money at essentially zero. It's his returns are bananas right now.”

“But the, but his, the underlying business that, you know, pays the interest expense on the debt only does four hundred million dollars a year in revenue, and it's, you know, high gross margin revenue.”

“And it is, so it's up in the last five years by 2600%. Okay, so it's shot up. It's if you compare it to even Nvidia stock this year, it's outperformed Nvidia, which is pretty insane.”

“The actual software business is declining 10% a year, and is something like a couple hundred million in revenue and under a hundred million of net income. So it is a rounding error. It is not, it is no longer relevant to the stock price.”

“They've basically acquired almost 400,000 Bitcoin. they've outperformed every company in the S&P 500. And last week alone, it saw one hundred and thirty six billion dollars of trading volume.”

“So he's basically created, he's Intentionally turned him, turned MicroStrategy into a meme stock. Meaning, he's detached it from the underlying business in the way that GameStop did.”

“MicroStrategy stock, which today trades at like a two and a half times Multiple of NAV. You know, NAV is the net asset values, like the underlying asset that it holds, right? It owns thirty-three billion dollars of Bitcoin. So the question is, why is it an eig…”

“He owns about one percent of the Bitcoin float today, and he's trying to get, you know, two percent, basically.”

“There is no strategy that is risk-free. There is no free lunch. And I think that right now, the entire narrative is about how this is a free lunch, how this is a free money glitch, and I don't believe that.”

“I wouldn't, I, with my own money, I wouldn't touch any of this. Yeah. Yeah. That's what I would say right now. I have no proof other than it just, it doesn't feel good.”

“MicroStrategy is back to their all-time high as of, like, last week.”

“It is basically a Bitcoin ETF that trades at a three X to book value.”

“And so he was the first public company that wasn't like a crypto miner or something like that to go and say, I'm going to put like 85% of my balance sheet into Bitcoin.”

“And he went from owning zero Bitcoin in July of 2020 to today he has more than 210,000 Bitcoin, which is more than one percent of the Bitcoin network.”

“So he currently has 14.96 billion Dollars of Bitcoin in MicroStrategy, and it's up 97% all time. So he's put in 7.3 billion, and now it's sitting on fifteen billion of assets.”

“The stock was basically flat from 2007 to 20 20 before he started making his bet. And that's a long time, right? That's 2007 to 20 20. That's a 13 year period.”

“Michael Saylor at MicroStrategy. He's now effectively raising money from public investors in taking out loans. This is like a, his company's turned into a leveraged, basically a leveraged Bitcoin fund is effectively what it is.”

“No we bought 2.2000000000 worth of Bitcoin. We own about five, a bit more than five billion, depending upon the day.”

“The business has two strategies, and the first strategy is we sell business intelligence software to our customers, and the second strategy is we acquire and hold Bitcoin. That is the business.”

“Then we did a convertible debt offering for six hundred fifty million dollars of debt at 75 basis points.”

“And then we did a billion dollar debt offering. And we did that billion dollar convert offering at zero percent interest.”

“So we offered to buy back two hundred fifty million dollars worth of the stock in this Dutch auction. So if you disagree with the decision to buy Bitcoin, you can sell the stock back at a profit. Our stock was one 20. We offered to buy the stock back at up to …”

“The investment income for sure.”

“So the big idea here is you want to fix any company, sweep all the cash flows into Bitcoin, convert the treasury into Bitcoin. Borrow against your future cash flows in dollars. Convert that into Bitcoin. Finance all your fixed assets in dollars. Convert that i…”

“Well, all 2000 people doing a 100,000 things right perfectly for the entire year competing against Microsoft that has more money than God, they can generate seventy five million a year.”

“It's been great for retention, and it's been great for recruiting. We can get, we get people, first of all, the company's brand has been amped up by a factor of a thousand. I mean, a lot more people know us now.”

“Well, we have permanent capital, so it doesn't make a difference to us, right? Like right now, for example, we have a three billion dollar investment gain. So if you cut Bitcoin in half, we would still have an investment gain, right? I mean, our basis is 24,00…”

“They own five billion dollars of Bitcoin. The company's worth seven billion dollars”

“We went public, had a thirty billion market cap valuation, And then lost 72% in one day.”