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Author Topic: Michael Saylor margin call if Bitcoin dumps below $21,000  (Read 779 times)
Don Pedro Dinero
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September 22, 2022, 03:20:15 AM
 #61

I am not quite certain why Michael Saylor continues to buy bitcoin right before a dump begins. If bitcoin continues to dump he might become a forced seller and be forced to dump some of those coins to control his losses. I reckon an investor must sometimes reduce the size of the investment to keep much of it away from risk.

On the one hand, it is clear that he puts his money where his mouth is, he cannot be accused otherwise.

On the other hand, I think he is in a kind of flight forward. After what he said about bitcoin, there is nothing left for him to do but keep on buying, because even if he were to back down, it could affect the market.

Can you imagine if he sold part of his bitcoin, as Musk did, to obtain liquidity? I think the market would react to the news with a downward reaction.

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September 22, 2022, 06:32:15 AM
 #62

On the one hand, it is clear that he puts his money where his mouth is, he cannot be accused otherwise.

His money? You mean money he got in loans in the name of his investors!

If MicroStrategy goes down it's not Saylor who will be going to be the one counting the losses it's the guys who loaned MS money and the guys who invested in that company, it's the same with Bukele, he didn't buy coins for Salvador from his pocket, he used government funds, aka people's money to do it. It's pretty easy to be bullish and not care about the price drop when it's actually not your money at stake.

I am not quite certain why Michael Saylor continues to buy bitcoin right before a dump begins. If bitcoin continues to dump he might become a forced seller and be forced to dump some of those coins to control his losses. I reckon an investor must sometimes reduce the size of the investment to keep much of it away from risk.

If you print money or shares and you don't care about them as long as you get $ which you can use however you want it's pretty easy to ignore that, how many times have we seen companies issuing shares after shares, getting tons of investors money and then delivering nothing with anybody facing any punishment for that? Look at what Faraday Future has done to billions in investments and despite losing all the money the next month they got another one and lost that money again and so on for 7 years in a row. And despite that, they still got listed on NASDAQ where their shares are down 92% to date.

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