Do you understand why MicroStrategy's market cap is larger than BTC holdings?

[SickDayIn]

It also helps to understand that if they can issue debt and shares to buy $42 billion (1/2 each) in bitcoin over the next 3 years that would buy ALL of the new supply of bitcoin for about 18 months at current prices - which is what they announced just before Halloween this year (2024).  If they can issue debt to buy $100 billion or something after that they are essentially sopping up a huge amount of the new supply so there is very little for anyone else except from current owners.  Either more people will sell or the price will have to go up until they wish to do so.

It almost becomes a self-fulfilling prophecy if their purchases can really impact the market this much and they have.  As long as demand continues both from them and elsewhere this can continue. 

As far as buying MSTR, it certainly has had a great run and if they can take 70% of the profits from the bonds then that could explain why people are willing to pay a premium.

Wow, I didn't even think about that. MSTR borrowing $$ to effectively purchase all of the Bitcoin supply anticipated to be coming in over the next 18 months, it certainly has a major impact on the price. However, at the same it's a bit concerning. I don't really want to live in a world where a single corporate owns like 1 million BTC out of the entire supply of 21 million. I feel like that will lead to centralisation in a sense. 

[john_egbert]

It also helps to understand that if they can issue debt and shares to buy $42 billion (1/2 each) in bitcoin over the next 3 years that would buy ALL of the new supply of bitcoin for about 18 months at current prices - which is what they announced just before Halloween this year (2024).  If they can issue debt to buy $100 billion or something after that they are essentially sopping up a huge amount of the new supply so there is very little for anyone else except from current owners.  Either more people will sell or the price will have to go up until they wish to do so.

It almost becomes a self-fulfilling prophecy if their purchases can really impact the market this much and they have.  As long as demand continues both from them and elsewhere this can continue. 

As far as buying MSTR, it certainly has had a great run and if they can take 70% of the profits from the bonds then that could explain why people are willing to pay a premium.

Wow, I didn't even think about that. MSTR borrowing $$ to effectively purchase all of the Bitcoin supply anticipated to be coming in over the next 18 months, it certainly has a major impact on the price. However, at the same it's a bit concerning. I don't really want to live in a world where a single corporate owns like 1 million BTC out of the entire supply of 21 million. I feel like that will lead to centralisation in a sense. 

Would we be able to do something with it, though, even if we feel that way?
That's the question I am asking myself.

[bettercrypto]

In fact, Microstrategy's strategy is doing well in accumulating bitcoin. What he is doing is being done by other big companies because they saw the results of what Microstrategy did. So he also did a good job that also gives influence to other big investors who will also buy a large amount of bitcoin in fiat.

So if microstrategy now has bitcoin holdings of 386,700btc, just multiply it by x5 and it will be around 178.5B$ dollars, which will immediately return to him,
the only thing he did was buy and hold.

[legiteum]

In fact, Microstrategy's strategy is doing well in accumulating bitcoin. What he is doing is being done by other big companies because they saw the results of what Microstrategy did. So he also did a good job that also gives influence to other big investors who will also buy a large amount of bitcoin in fiat.

So if microstrategy now has bitcoin holdings of 386,700btc, just multiply it by x5 and it will be around 178.5B$ dollars, which will immediately return to him,
the only thing he did was buy and hold.

And he bought with other people's money, and he only intends to share a fraction of the profits those people would have made had they simply bought Bitcoin directly.

Great work if you can get it .

[coolcoinz]

I like Saylor and I think he's done a lot to spread word about Bitcoin and build his own brand. As bitcoin became more popular so did Microstrategy, so Saylor found a way for his company to benefit from a miracle that bitcoin is, because to go from below $1 in price to almost $100k is a miracle. No asset does that.

That said, I would not buy MSTR over bitcoin right now. IMO it's a bit overpriced and has a much less room to grow. Also, MSTR can crash on its own, for instance due to some internal problems, division, Saylor's death, or something else, but bitcoin doesn't care. It does not depend on MSTR, unless Saylor dumps everything, but even if that happens bitcoin will recover faster than MSTR stock.