MICROSTRATEGY stock forum
MSTR dont listen to the FUD go hear and really find out what the 31x down means for your time and effort youtube.com/watch?v=8Perx7nXXiE
MSTR Merry Christmas everyone🎄
MSTR There are also 1000s of penny stocks that trade in the pink sheets that have billions of shares too. Share count means nothing without context.Big companies like Nvidia, Apple and Amazon have billions in revenue and billions in profits to go along with their billions of shares, which is what drives their stocks. They also have billions of cash on hand and can pay their bills without the need to issue more stock (unlike MSTR).
Furthermore their high share counts are because they have had many, many stock splits over the years. AMZN has had more stock splits in the last 20 years than MSTR has had profitable quarters, lol.
I was an early investor in Amazon before they were listed on the NASDAQ in the 90s and remain an investor today. To compare MSTR to AMZN is like comparing Burundi to the United States. Simply laughable.
MSTR is losing more money each quarter than they have in revenues. Think about that! Yet somehow people believe Saylor is some sort of master businessman.
No, he is a grifter that has figured out a way where he can fund his losses and keep up his lifestyle.
They have 2000 employees and a bloated management staff. Revenue is dwindling and losses are rising. What are these people doing all day? You know who is going to fund that dead weight? You are, the investors!
Rather than focus on the core business and try to make it better, you've got Saylor running all over the country to do interviews and pump bitcoin. You know why? Because that's what grifters do. Grifters gonna grift.
Anybody heard any plans about cutting costs or jettisoning all that dead weight running the company into the ground? Nope! And you know who is going to continue to fund their losses? The shareholders!
They are going to retain some money from each round of fundraising to keep funding their lavish lifestyles as if the world is merry and bright. Saylor just added 3 of his buddies to the board and gave them $ 2 million each. And they'll be given a "non-employee compensation" of $1 million per year each in order to keep blessing this charade.
Meanwhile some of your share dilution is going to fund all that instead of buying bitcoin.
That is called slippage, and it's another reason an investment in MSTR will never match a straight up investment in BTC. It's mathematically impossible.
You might as well be cutting them a check each month. Be sure to stick a thank you note in there too for Saviour Saylor. Maybe include a piece of cloth from your first born's blanket so that he can sprinkle some holy water on it, wave a thurible incense burner over it and bless it.
MSTR everyone who thinks bearish about mstr cuz of them deluting shares do not forget to look at the amount of shares nvidia, apple, amazon have all above 10b.and ofcourse he will not add 10b shares in one day its a long term plan the maximum they can add will go to 10b
all big companys have more open shares then mstr and they are not dead to , adding 10b shares will give mstr the chance to buy all the remaining btc so this plan is extremely bullish
MSTR they are diluting all the shares everyone dump! before u hold the bag this is another DRYS. THEY CARE NOTHING ABOUT THE SHAREHOLDER.MSTR Here is some math that can be done on any standard calculator: Dilution Ratio = New Shares Issued / (Existing Shares Authorized + New Shares Issued) = 11,000,000,000 / 11,330,000,000 = 0.9709 or 97.09%.
Yep, existing shareholders will eventually see their ownership diluted by 97.09%. Put another way, their proportional ownership of the company will drop to just 2.91% of what it is today once all stock has been fully issued.
That's not a typo... 97.09% dilution! This is catastrophic dilution for existing shareholders unless the capital raised is deployed so perfectly and so effectively that it offsets the reduction in ownership. That would be a first for mankind.
I'm sure the fanboys will argue that Saylor is such a genius and he knows what he is doing. He is debasing fiat, he's a maverick, he's printing money. In the 232 years of the New York stock exchange no one has ever been smart enough to figure out how to do this until Savior Saylor came along. Their big reason for believing? Bitcoin will increase as more purchases are made and skyrocket in value. It's that simple man! We'll all be millionaires!
Ok, fair enough. Let's do some more math to see how high BTC will need to rise to offset the proposed dilution and make some profit.
If we start with $350 as the base share price and assume that Saylor will issue $5 billion worth of stock each week to buy tokens (that's an extremely aggressive 14.3 million shares weekly), it will take him almost 15 years (14.83) to issue all the shares.. That's fifteen years of $5 billion weekly purchases. Let's assume the market keeps giving MSTR a 2:1 premium above BTC spot for a while and slowly migrates to a 1:1 ratio over the 15 year period. We will also assume an annualized (and staggering) 40% increase in BTC spot each year for 15 years due to the constant Saylor buying pressure. That means BTC would be fetching $14,144,602 for each token after 15 years. Incredible for sure.
By the end of 15 years, MSTR would own 8,381,831 coins, nearly half of all bitcoin tokens in the active float. The MicroStrategy market cap will have swollen from $86 billion present day to an unbelievable $237 trillion at the end of 15 years. The share price would be a whopping $10,505 per share, which is a 3,638% increase. That equals a 27.66% annualized return for 15 years, which is unheard of. That would make Warren Buffett (13.95%) and the QQQ (19%) blush with envy.
Fantasy land? Yea, probably so. Everything would have to go perfectly for it all to work. There would have to be a constant stream of buyers willing to purchase new share offerings. No crypto winters, no new crypto regulations and no unfavorable tax treatment for 15 years.
But, let's say you buy the hype and think Saylor can pull it off. And the chance at 27.66% annual returns is too tempting to pass up. That is until you figure out how much the same $350 investment would be worth in 15 years if you simply had bought BTC directly and not using MSTR as the proxy. That same $350 would have grown to $51,369 which is a 14,577% increase. That equals the same 40% annualized increase in Bitcoin used in the model. That's almost 5x more return when owning BTC direct than owning it through MSTR. Why the huge difference? The power of compounding over time. The full $350 will go to work immediately in BTC earning the 40% annually, rather than having the first years being hampered by the dilutive effect until the compounding effect of Bitcoin appreciation overcomes the dilution.
That means you will have paid Saylor (and his Wall Street buddies) a staggering $40,864 commission to purchase Bitcoin for you over the 15 year period... For an initial $350 investment. For some reason Savior Saylor is not telling you that part. Like I said in an earlier post, there is no free ride in life.
MSTY An infinite money engine for you:1) Put 100% into
MSTY2) Accumulate its ridiculously high monthly dividend payments in cash.
3) Use that cash as margin to sell weekly At the Money PUTs in
MSTR over and over again4) Use the PUT premium to buy
MSTR sharesAs the dividend cash accumulates each month you will be able to sell more and more PUTs each week to buy more and more MSTR. Eventually you'll wind up with more SMSTR shares than if you had put 100% in SMSTR in the beginning but you also gain
MSTY price appreciation and all of its dividend income.
MSTR fools rushing into the wood chipper, as Saylor bloats stock.MSTR sub 300 is certain. Saylor upping his blood pressure meds.
MSTR This bear should take us under 300