Microstrategy self fulfilling prophecy (Patreon)
Published:
2023-12-04 17:08:16
Imported:
2023-12
Content
What I've been trying to explain for years - this tweet does it so well.
- MSTR is MicroStrategy, a company that invests in Bitcoin and sometimes issues debt to buy Bitcoin.
- BTC is Bitcoin.
- $MSTR issues debt to buy $BTC means that MicroStrategy is taking out loans to buy Bitcoin.
- $BTC against debt, $MSTR mktcap + weight in indices ↑ means that the price of Bitcoin is rising, which is increasing the market capitalization of MicroStrategy. This, in turn, is increasing MicroStrategy's weight in the indices, which are collections of stocks that are used to track the performance of the stock market.
- $MSTR mktcap, $BTC, weight in indices ↑ means that the market capitalization of MicroStrategy, the price of Bitcoin, and MicroStrategy's weight in the indices are all continuing to rise.
- $MSTR issues more equity to buy $BTC means that MicroStrategy is selling shares of its stock to buy Bitcoin.
- $BTC, $MSTR mktcap, weight in indices ↑ means that the price of Bitcoin, the market capitalization of MicroStrategy, and MicroStrategy's weight in the indices are all continuing to rise.
The MSTR fudders cannot do math.