Top Tweets for #JustMath

If you bought $100 of Bitcoin when Coinbase was founded in June 2012, it would now be worth about $1,500,000. If you kept the $100 USD you'd only be able to purchase about $73 worth of goods today. Bitcoin is the best performing asset of the last 12 years, and it's still early days. Every government, especially those looking to create a hedge against inflation, should create a Bitcoin strategic reserve. Happy Bitcoin $100k day.

I HAVE SOME THOUGHTS ABOUT MICROSTRATEGY $MSTR. I heard Saylor say something yesterday & I cannot stop thinking about it. The biggest bear case I hear against $MSTR is the following: “The stock trades at 3-4x its net asset value against the value of their of $BTC, the multiple is unsustainable, therefore it is overvalued.” Saylor said something along the lines of this when responding to this bear case: “Wait, so Microsoft does $100B in profits per year…why are you paying $3.4T for that?” This. Really. Made. Me. Think. Microsoft offers product and services — office, copilot, laptops, cloud, etc. that they generate revenue on. The market then assigns a value to that revenue/net income and gives it a multiple. That is exactly what $MSTR is doing, just not with conventional products like laptops. Microstrategy is creating a Bitcoin Treasury by collateralizing their stock for 0% interest cash to buy more Bitcoin — as a result, the “products and services” they offer is one of the most liquid option markets that leverages against their equity because they are leveraging their stock against the arbitrage opportunity of the upside on $BTC Bitcoin. You might not like the product/service they offer, just like you might like Apple laptops over Microsoft ones, but it is a product or service that people are willing to pay a premium for. I’m not saying $MSTR is cheap, it is obviously contingent on Bitcoin, but I do believe there is a reasonable argument for why people pay the premium against their underlying $BTC position. Multiples change all the time as we’ve seen for big tech — but the market gives a multiple against the underlying assets of a company if they believe in the value of their products and services. The same is happening with Microstrategy.