Michael Saylor is changing the investment world.
Michael Saylor is supercharging growth with Microstrategy (MSTR), and he’s doing it faster than anyone thought possible. In just six weeks, he’s accelerated what was supposed to take three years.
In this quarter alone, Saylor’s generated a profit of over $12 billion. All by turning US dollars into pristine digital property.
Some think he’s running a ponzi. But there’s a simple genius to what he’s doing.
The ultimate goal for any public company is cash. You take funds from the capital markets and make a product. The product doesn’t matter - it could be software or hamburgers or motorcycles. You take cash to create that product, and you sell it for more cash. Grow your cash pile, and the market rewards you with stock price appreciation.
This is all Saylor is doing. He’s creating products (ATM sales, convertible bonds) to generate more cash and grow his pile.
But he’s adding a twist.
Instead of hoarding cash, which loses value as the dollar inflates, he's buying Bitcoin. Cash on balance sheets or in bank accounts loses value over time. Companies like Microsoft and Apple sit on cash that's bleeding value, while MSTR invests in Bitcoin, which appreciates. If you’re a company sitting on loads of cash that’s losing purchasing power, you invest it back in your business, acquire another company, issue dividends, or you let it sit and rot. But just like cash in your bank account, cash on a balance sheet is programmed to melt.
If you don’t understand Bitcoin, or you think the US dollar is a superior asset to Bitcoin, then what Saylor is doing doesn’t make any sense.
Bitcoin is the opposite of cash. It doesn’t rot on a company balance sheet like the US dollar. It doesn’t lose value over the long term.
The US dollar is infinite. Bitcoin is finite.
Saylor is taking something that a government can print with a couple key swipes and using it to acquire a finite asset. Think of Bitcoin like pristine property. A piece of the world’s best real estate, but with true scarcity. And without having to wait months to buy it, and without the headaches of lawyers, accountants, maintenance, and insurance fees leeching the energy from it.
You’re wondering when Saylor might sell his Bitcoin for cash? He never will. That's missing the point. He isn't looking to “cash out.” Bitcoin is the endgame.
His strategy is simple, and he’ll tell you exactly what he’s trying to do: Stack as much Bitcoin as fast as possible. The price? Irrelevant. Saylor's buying at any price, even a million a coin. Eventually, everyone will see the sense in trading dollars for Bitcoin because holding dollars will never make sense when Bitcoin exists.
He’s been wildly successful so far, generating profits at a rate you only see from the top companies in the world, while MSTR trades at a tenth of the price of those same companies.
It’s not a convoluted financial engineering scheme. There’s no secret formula. Saylor’s products pull in billions in US dollars, and he turns them into Bitcoin.
In short, he's not doing anything different from the best companies in the world - turning dollars into more dollars. He's simply choosing Bitcoin.
@nextiscrypto Appreciate it.
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@simplybitcoin Bitcoin will impose itself on everyone. Taleb, corporations, government etc. Study it enough and you won’t care what anyone else thinks of it.
People think the value of money is a constant.
One hundred dollars is always one hundred dollars.
But the price of money is changing like every product and service.
And it’s only moving in one direction: down.
Money has a price just like any product, but it’s hidden.
If you could see it, you’d see that you’re being chopped to bits.
If you could see it, you’d rush out of it as quickly as you can and buy Bitcoin.