down 20% today!
They will be margin-called and go to zero at some point IMO, Saylor has bet the company on a leveraged bet on Bitcoin only going up.
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$21,000 is the magic number for being margin called, Bitcoin passed this yesterday.
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The MadLad CEO actually bought even more BTC…
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It takes conviction to do this, the whole thing is wild. Microstrategy is basically a Bitcoin wallet for an evangelist.
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It is madness isn’t it? I am fascinated by the whole thing. He’s either a forward-thinking genius or an absolute nutjob. Potentially a bit of both as well I guess.
I think your comment regarding the margin call was incorrect though - I believe that Saylor himself said it was more like $3000 so he still has some wiggle room but what happens when/if it falls more, who knows. He’s said he’ll just buy more as collateral.
Absolutely bonkers.
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todays price? $19,260. Thats a ‘loss’ of $750,000 just for not waiting 1 day. Its just an example, know thats not how things work, but given BTC is so unpredictable he could have just burnt that money imo. We shall see in a year’s time whether he’s a visionary or has super deep pockets or us bankrupt at this pace.
It’s pretty wild, but I’m not complaining. This is the exact reason I dipped into MSTR - to get bitcoin exposure within an ISA.
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I think the phrase goes something like: even an absolute nutjob is a forward-thinking genius twice a bull-run.
I believe the nuance is margin call vs. liquidation. A margin call is when you’re asked to provide more collateral (which is what happened to $MSTR when Bitcoin hit $21k and will continue to happen as the price falls) vs. liquidation, which is the point at which the borrower no longer has any option to recover from the falling asset price and loses everything. Essentially, <$21k is expensive for $MSTR, <$3k is an existential threat.
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…and anything in between the vultures are circling.
Good info regarding margin call vs liquidation, thanks for that. So, in stupid-me terms, currently Saylor is dancing around on hot coals and if it hits $3k he’s fully submerged in lava? Gonna need more popcorn me thinks!
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Bump!!
I can’t believe BTC is making ATH after the historic US ETF approval, there’s an imminent halving and no topics on it?
I am a long term BTC holder, and now I am getting more exposure here via MSTR.
I started investing in BTC in 2019, after the first rise to $20k, there was an incredible hype around crypto at the time, daily conversations in the office, etc. Then the proce collapsed 80%, as usual and everyone went silent. I was convinced it was a bubble, but started reading and understood.
Please correct me if I’m wrong, but I think MSTR is the only way of getting exposure inside an ISA/SIPP
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Also Coinbase, Riot, and there is a crypto “ETF” which is a collection of all public equity which provides crypto exposure
I went one further and bought XBT ETF in my SIPP back before FCA/The-Nanny-State said you could not be trusted making financial decisions
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It’s wonderful how they take care of us forbidding access to the most profitable assets and let us enjoy a 15% discount on GBP (thanks to Brexit, that’s how much GBP .is debased against world currencies)
I will thank them by moving to some more BTC friendly country like Portugal, Germany or Malta before cashing out any BTC
I am surprised how the UK politicians (and all those voting them) have done EVERYTHING wrong since Brexit
Also: honestly I see the MSTR propositio the most akin to owning BTC, but I might diversify using ETFs like DAGB or BCHS in some other ISA provider
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You can buy BTC miners as alternative BTC proxies, such as Cleanspark
MSTR has had a great run so far
BTC miners IMHO are not in the same category. They move with BTC price, but they don’t have a hoarding strategy like MSTR. Compare the holdings:
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Interesting:
Agree.
