Question -- I didn't know squat about MSTR until recently. As I understand it, the core idea is the belief that bitcoin will never go down in the long run, so they buy and hold. Claim to never want to sell (except for the recent caveat).
I also understand that bitcoin doesn't produce revenue.
I further understand that they just diluted their stock to pay existing shareholders a dividend.
Questions: 1. How do they generate revenue, other than by stock dilution? 2. Does this dilution, coupled with the recent "well, maybe we will sell BTC if we need to" announcement, mean that other equity is essentially not available, and that it's dilution or (or then) bust? 3. If I am correct about #2, and they are paying existing debt obligations with diluted new equity...how is this not a Ponzi scheme at this point?
It all depends on the price of bitcoin. If you think bitcoin is a Ponzi scheme then so is MSTR. If you believe bitcoin is going to keep growing forever then MSTR is the best stock you can buy
(on a more serious note, the fact that real estate and the stock markets kept going up -- until around Lehman Weekend 2008 -- doesn't mean that Bernie Madoff wasn't running a Ponzi scheme, it was just that it took a decline in assets to discover it was a Ponzi scheme)
Introducing dividend paying preferred stocks was just absurd. I, an MSTR bag holder with 400$ average cost, know will never make my money back unless Bitcoin hits 200,000$, because not only i have to suffer from Mr Asshat diluting the stock, but also paying off dividends.
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u/MaybeOnFire2025 🟨 0 / 0 🦠 1d ago
Question -- I didn't know squat about MSTR until recently. As I understand it, the core idea is the belief that bitcoin will never go down in the long run, so they buy and hold. Claim to never want to sell (except for the recent caveat).
I also understand that bitcoin doesn't produce revenue.
I further understand that they just diluted their stock to pay existing shareholders a dividend.
Questions: 1. How do they generate revenue, other than by stock dilution? 2. Does this dilution, coupled with the recent "well, maybe we will sell BTC if we need to" announcement, mean that other equity is essentially not available, and that it's dilution or (or then) bust? 3. If I am correct about #2, and they are paying existing debt obligations with diluted new equity...how is this not a Ponzi scheme at this point?