The Problem with MSTR
Posted: Dec 25, 2024
- Company involved: MSTR
- MSTR has nothing to do with crypto, but is buying BTC with gross profits
- Borrowing against the assets to cover operating costs
- Diluting shares to buy more BTC at the top
- Seemingly not running a traditional business, more like an investment with high operating costs
- Added to Nasdaq-100 due to share price increasing with BTC ownership
- Concerns about multiple companies on Nasdaq-100 being at risk due to BTC
- US having strategic reserves of BTC could be risky if BTC crashes
- Encouraging strategic reserves in BTC could weaken the dollar as reserve currency
- Confusion and concern about MSTR's actions and the broader institutional risks.
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - While there are comments recognizing Saylor's strategy as financially savvy, many more highlight doubts about MSTR's long-term value and skepticism about its viability, indicating a predominately negative sentiment. Summarized comments: - MSTR's product is essentially its shareholders, with revenue derived from 0% convertibles, allowing prolonged operation despite volatility. - Concerns about misunderstanding decay in MSTU investments. - Mark Meldrum offers critical insights on MSTR as a meme stock, highlighting high short-term gains but potential long-term pitfalls. - Skepticism about CEO Michael Saylor's strategy of inflating MSTR's value to net personal financial gains, with aspirations tied to Bitcoin's success. - Some view Saylor's financial maneuvers as genius, making MSTR worth buying due to its attractiveness in volatile markets. - Debate exists on whether MSTR is a good investment, with some involved in Bitcoin infrastructure development expressing doubt. Stock tickers discussed: $MSTR, $BTC
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