Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Marketwatch)   Microstrategy's investment strategy in Bitcoin has paid off generously, with its stock now at a two-year low   (marketwatch.com) divider line
    More: Fail, Shares of MicroStrategy Inc., Exchange-traded fund, lowest levels, Application software, Tumbling, Canadian Forces Primary Reserve, bitcoin play, Starship Enterprise  
•       •       •

575 clicks; posted to Business » on 24 Jan 2022 at 8:25 PM (17 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



17 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-01-24 3:52:21 PM  
Try to catch a falling knife market?
 
2022-01-24 8:29:03 PM  

AlgaeRancher: Try to catch a falling knife market?


Careful. We don't need 500 posts with Penis_Yes explaining to us why lazy sit-at-home stockholders are bad, but lazy, sit-at-home crypto speculators are good.
 
2022-01-24 8:34:54 PM  
Good gods, they made bitcoin their PRIMARY reserve asset??? What the fark were they thinking?? They sunk just under $4 million in bitcoin (when it was valued at $30k).

I wonder what other catastrophic decisions they've made over there?
 
2022-01-24 8:35:03 PM  

jso2897: AlgaeRancher: Try to catch a falling knife market?

Careful. We don't need 500 posts with Penis_Yes explaining to us why lazy sit-at-home stockholders are bad, but lazy, sit-at-home crypto speculators are good.


You don't need to be that careful- those posts will avoid addressing what is stock, what is crypto, who is lazy, who is sitting at home, who is good, and who is bad. But somehow you'll come out of it thinking Santa is the most likely think to believe in.
 
2022-01-24 8:46:57 PM  
Fark user imageView Full Size


Things grew tense at the recent shareholder meeting.
 
2022-01-24 9:13:49 PM  
Hey, I wonder how those people in El Salvador are doing?
 
2022-01-24 9:13:50 PM  

Opacity: jso2897: AlgaeRancher: Try to catch a falling knife market?

Careful. We don't need 500 posts with Penis_Yes explaining to us why lazy sit-at-home stockholders are bad, but lazy, sit-at-home crypto speculators are good.

You don't need to be that careful- those posts will avoid addressing what is stock, what is crypto, who is lazy, who is sitting at home, who is good, and who is bad. But somehow you'll come out of it thinking Santa is the most likely think to believe in.


But, Santa IS the most likely think to believe in.
I ,mean, if you believe in thinks.
 
2022-01-24 9:23:44 PM  

jso2897: Opacity: jso2897: AlgaeRancher: Try to catch a falling knife market?

Careful. We don't need 500 posts with Penis_Yes explaining to us why lazy sit-at-home stockholders are bad, but lazy, sit-at-home crypto speculators are good.

You don't need to be that careful- those posts will avoid addressing what is stock, what is crypto, who is lazy, who is sitting at home, who is good, and who is bad. But somehow you'll come out of it thinking Santa is the most likely think to believe in.

But, Santa IS the most likely think to believe in.
I ,mean, if you believe in thinks.


After reading some of the posts we both read earlier today, I think in Santa.
 
2022-01-24 9:34:10 PM  

Moose out front: Good gods, they made bitcoin their PRIMARY reserve asset??? What the fark were they thinking?? They sunk just under $4 million in bitcoin (when it was valued at $30k).

I wonder what other catastrophic decisions they've made over there?


I am not a huge crypto fan (I think it's mostly scammy), but Microstrategy created a way to give people exposure to Bitcoin without having to hold actual Bitcoin (which is problematic, to put it mildly) and before Bitcoin ETFs were a thing.  It was actually a pretty ingenious way to fill a market opportunity.

Even with Bitcoin prices way down, the "pot of Bitcoin" part of their business is still worth many times their "actually does stuff" part, so it's hard to call it a failure yet
 
2022-01-24 9:47:21 PM  
Guys, it's a revolution.

Stop laughing
 
2022-01-24 10:44:06 PM  

Opacity: jso2897: Opacity: jso2897: AlgaeRancher: Try to catch a falling knife market?

Careful. We don't need 500 posts with Penis_Yes explaining to us why lazy sit-at-home stockholders are bad, but lazy, sit-at-home crypto speculators are good.

You don't need to be that careful- those posts will avoid addressing what is stock, what is crypto, who is lazy, who is sitting at home, who is good, and who is bad. But somehow you'll come out of it thinking Santa is the most likely think to believe in.

But, Santa IS the most likely think to believe in.
I ,mean, if you believe in thinks.

After reading some of the posts we both read earlier today, I think in Santa.


"In Santa we think" should be the motto of the business tab
 
2022-01-24 10:57:15 PM  

OptionC: Moose out front: Good gods, they made bitcoin their PRIMARY reserve asset??? What the fark were they thinking?? They sunk just under $4 million in bitcoin (when it was valued at $30k).

I wonder what other catastrophic decisions they've made over there?

I am not a huge crypto fan (I think it's mostly scammy), but Microstrategy created a way to give people exposure to Bitcoin without having to hold actual Bitcoin (which is problematic, to put it mildly) and before Bitcoin ETFs were a thing.  It was actually a pretty ingenious way to fill a market opportunity.

Even with Bitcoin prices way down, the "pot of Bitcoin" part of their business is still worth many times their "actually does stuff" part, so it's hard to call it a failure yet


... what?

Ingenious? As in how? They are a company that put all their money into an asset for speculative purposes. It's been done many times before with oil, gold and just about every other kind of asset. This is about as unique and innovative as the early 2000's were because they did something on the internet that had been done by traditional means before hand. Yes it's new but hardly unpredictable and quite expected if you look at the entire market space as a whole.

As for the idea of exposure to Bitcoin without having to hold Bitcoin, I also find this a weird statement. It's like you are saying if I took $100,000 and started/incorporated a company that i own and then used my startup $100,000 to invest in Bitcoin, that it's somehow different than if I directly invested $100,000 in Bitcoin and didn't mess with making a company. If anything in this instance it's worse as it just added a middleman to help mismanage your exposure by potentially opening yourself up to theft and security flaws because people could steal, grift, hack/malware/phishing attack said company causing great loss to you that is entirely outside of your control. If anything I'd say they have increased exposure to loss investing in Bitcoin this way, and in the process they introduced middlemen to leach salaries off said investments.
 
2022-01-25 12:00:01 AM  
Microstrategy got screwed by accounting rules.  I have seen valuation estimates for the company that are somehow below the market value of the accumulated Bitcoin holdings.
 
2022-01-25 1:12:57 AM  
Hmm. How could the company be valued as LESS than its Bitcoin assets?

Well, one of three things must be true. Its valuation is higher than its bitcoin holdings, equal, or less.

It is not going to be higher. Why would it be higher? It only holds Bitcoin, so if it sold all of its bitcoin and distributed that to shareholders, the shareholders would have to pay taxes on the distribution, plus there are management fees, transaction fees, and the managers of the company would take their cut.

So it aint going to be higher.

The probability of its valuation being exactly equal, over a jillion shareholders, and down to the penny, is infinitesimally small, so forget it.

No. It will be less. Just as with any ETF or "mutual fund" or "hedge fund," there is going to be a front end or back end load, management fees, transaction costs, etc. So the value of such a fund holding only bitcoin is going to be less than its bitcoin holdings.

The only reason I would hold this ETF would be that I can trade into and out of it very easily, whereas Bitcoin is known to have problems with transaction costs, liquidity, etc. Someone who did not want to deal with wallets and all the crap might want to buy shares of this ETF.

And if its value is higher than the Bitcoin holdings it has, then that would signal that there are a lot of idiots in the market. Take profits. It is, by any reasonable definition, overvalued.
 
2022-01-25 7:59:30 AM  
"... has paid $3.75 billion to buy 124,391 bitcoins at an average price of $30,159 per bitcoin."

Right now:
Market Summary > Bitcoin
36,548.30USD

It's not going further down.
 
2022-01-25 8:31:36 AM  
More noteworthy:
Fark user imageView Full Size

That chart is somehow sadder than Tootsie Roll and Enron combined.
 
2022-01-25 10:06:20 AM  
Fark user imageView Full Size
 
Displayed 17 of 17 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking




On Twitter


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.