The moral of this story is: most people have literally no clue about bonds. And for that, this video is gold. Over most peoples heads but probably inspires some folks to look into bonds. Tip of the iceberg here about finance
I'm thinking about starting my investment journey, but I feel a bit overwhelmed and uncertain. Do you have any tips or suggestions on who I could reach out to for guidance?
I’m happy to hear about your positive experience! As a beginner, I also faced some initial losses until I started working with Mrs. Alana Ringberg, who is featured on CNBC. She has effectively managed my portfolio, delivering strong returns. I truly appreciate her honesty and exceptional service.
Initially, I was hesitant after reading testimonials about Alana, but I decided to give her a chance. Since I started trading with her, I've seen great returns.
Alana handles my investments, allowing me to relax at home and make weekly withdrawals without any trading expertise. She takes care of everything herself.
@@who2u333To be fair, if we got a significant amount of people to throw it all in, it literally couldn't go down! At least not for a decent timeframe. Quick everybody throw it all on black!!!
well you see there are limited amount of bitcoin therefore unlimited value it is literally the dumbest argument.. when the air comes out of this it will be epic..
Crash and literally nothing happens to MSTR. Otherwise please tell me how is it different from the previous bear market when mstr is using the exact same strategy and didn't go bankrupt?
@@kemingyu4266 To be fair they were quite close to getting wrecked last time. It didn't happen, but if BTC went to like 5k I think he would've gotten either margin called or forced to do a huge share sale
Hes going to be flipped upside down when this bull cycle ends next year. It wouldn't be bad if his average was low. He is buying at all time highs though. If he's trying to 2x the retun of Bitcoin. He has to be prepared for the other end of the sword. 2x the losses
He only has 7B debt with 0% interest rate. If Debt matures when his BTC is down, he can issue new 0% convertible bonds to pay off matured convertible bonds. There's no interest expenses. Ponzi breaks when interest expenses.
@@phumkhmertv2028 Ah yes, because investors will be stepping over each other to buy 0% interest convertible bonds to keep the company afloat in a bear market. At a large premium no doubt!
@@phumkhmertv2028: No, he can't issue 0% bonds when BTC is unpopular and the FOMO premium is small or gone. You're missing a VERY important concept with that assumption.
Theres a reason Saylor is focused on highlighting the volatility on MSTR because that's what the bondholders are trading. Volatility, they don't want to convert the bonds to shares, they don't even care if the price of MSTR goes up or down. They need it to move and they capture the spread on changes in realized volatility. The btc and equity acts as collateral.
Yes, the convertible bond holders short some fraction of the shares. The price goes up, they short more shares. The price goes down they cover some. The convertible bonds gives them cover so they never get blown out of the position. They actually don’t want the price to go up too much because then they are locked in. They want the shares to continually go up and down so they can make money off the changing short positions they have.
Hallelujah! God is still performing wonders. I'm positioning myself for such miracles. This is the best thing I've seen today on RUclips-thank you so much!.540k earned so far.
this seems like the period we need to try Bitcoin, investment? bitcoin is about to hit $100k Even the market are now very unpredictable. started investing recently when the market prices were a big high,today How do i make good profit. from cryptocurrency,
To be successfully in life one must take risk, investing brings success that’s why the rich will never come out in public to tell you how they make their money
The crypto market has been unfavorable for months and I keep losing my money selling-off during dips, I'm very scared of holding right now, how do you guys still make so much….?
The first step in every successful investment is to establish your goals and risk tolerance, a task best undertaken with the assistance of financial advisor.
You're right! I've been trying to trade but I keep making losses and it's frustrating Who is your mentor please. how can I reach him/her I really need help
@@isbestlizard I may be on the dumber side, but when I hear word salad like that, immediately throws up red flags. Appears to obfuscate what is actually occurring by confusing the listener. If I can't understand what is going on, it's a no go.
Anything thats seems to be a "Infinite money glitch" will inevitably become "infinite destruction nuclear bomb". i think we could agree that humankind should have learned this lesson by now 😅
Bitcoin isn't the bubble. Bitcoin is the pin. Bubbles don't reinflate every 4 years. This is called an adoption cycle. Might want to spend time studying this one. Or not. Bitcoin is going up with or without you.
The moral of this story is: most people have literally no clue about bonds. And for that, this video is gold. Over most peoples heads but bonds oh bonds look into it. Tip of the iceberg here about finance
Question. Isnt he connecting the stock market to the crypto market? Like its a reverse funnel. When crypto goes through its next collapse, wont his exposure pull down his stock price, and by extension his investors will need to sell stock from every facet of their portfolio, causing contagion? I mean, with that amount of capital, they're definitely using their portfolio for loans and equity. Ao the next crash will be more widespread and a greater drain on the market as a whole?
MicroStrategy is the most unique stock in the world, because their valuation is based on their balance sheet, rather than their PE ratio like every other companies.
@@CarlMartin-hw3ev Yet those companies without PE can't even compete with the top companies in the S&P 500, you're looking at penny stocks. Microstrategy is the only one that's outperformed every stocks in every S&P index, even beating Nvidia since MSTR adopted a Bitcoin standard. You didn't know that?
“Markets can remain irrational longer than you can remain solvent.” ― John Maynard Keynes I feel like the market's irrationality is getting worse by the day. Surely it'll have to pop at some point, but are we talking months or years or decades?
it certainly is irrational. Bitcoin has no utility whatsoever, and thus I believe has no intrinsic value. However, bitcoin is worth what people will pay for it. As long as enough people consider it worth buying, it will maintain value. There are also a finite number of bitcoin. This fact, combined with the fact US government keeps printing dollars, leads me to believe the bitcoin bubble will not pop any time soon. This all being said, I do believe that bitcoin will fall back to $0 at some point.
*I really appreciate your clear and simple breakdown on financial pitfalls! I lost so much money on stook market but now making around $18k to $21k every week trading different stocks and cryptos*
You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires
Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them. People prefer to spend money on liabilities, Rather than investing in assets and be very profitable
Yes! Saylor is performing FUSION of grifter bullshiit and hype with cryptoenthusiast investor greed and thereby generating massive output of 200-300% premium valuation. And for a cryptocurrency that will obviously appreciate 29% per year for 21 years. What could possibly go wrong with any of this brilliant conjecture?
I think he means that the entire bitcoin network, is analogous to an energy reactor, due to how much energy goes into the network, resulting in the proof of work ‘value’ that bitcoin holds.
I cant believe Im saying this, but this was a little reductive. It ignores that he sold the bonds when MSTR was at 550, and trading at like 1/4.5:btc. I needed this video to fully get it, but its arbitrage of 4 different things: BTC:MSTR Stock: USD: MSTR notes. The notes are key - he locked in the gains from the rapid runup, and then used the premium to buy more btc. Every shareholder is benefiting from the money coming from debt purchasers, who are only institutions and want the risk. Its working because he's using the MSTR ticker as an efficient bridge. If he wasnt controlling the flow - when debt is sold and the terms, when he buys btc and how this wouldnt work, but he is. And thats why people are paying a premium, the perception is that he understands the controls he created.
@@CSqrdX we can’t assume everyone is an informed actor, but that’s literally why the convertible notes are only available to institutions. The traders buying them both understand and want the reward for taking the risk.
Question: What is the difference between a "retail" investor buying 100 shares, and then selling Calls - wouldn't that capture the "Volatility" better than buying bitcoin and the stock?
@@jgreen6139love how Bitcoin is supposed to be trustless, yet 5 dudes at Coinbase could steal 20% of all the Bitcoin, and there is no recourse because blockchain is immutable.
Doesn't matter. Their software is a tiny amount of their profits and risk now. They are a BTC holding company that buys BTC with leverage. Next BTC bear market they are going bankrupt.
Essentially everything surrounding crypto currencies are scams. I'm a securities litigation consultant and when going through a portfolio if anything crypto related is present it's a red flag that the client isn't sophisticated and blindly/ignorantly follows hype.
How is the upside for the convertible capped? Mstr sells the bonds and immediately buy and hold btc. On top of that they are selling the mNAV plus the strike price so they get more btc than if they did a standard bond.
This reminds me of "infinite money glitches" in the past that I read about in investing books. i.e. there was a time when high PE companies could buy up a low PE company in a completely different industry, and have foolish investors suddenly value the low PE company at the same high PE ratio as the high PE company. So in effect even with paying a slight premium they'd still "print" money by buying up unrelated low PE companies, which allowed them to financially engineer as much earnings increases as they wanted. Until eventually investors realize that they're just a conglomerate of a bunch of completely unrelated businesses, most of which are being badly mismanaged and seeing their earnings decline as a result. And that people is why conglomerates often trade at a low PE ratio.
@@user-iz5yt2bt3hit is different, but the same. Inflation of asset valuations through marketing rather than profitability through demand side growth based on real necessity.
How does any of this truly create value in the real world? All these numbers say is: we played the system and we won. The last one left holding the bag will be screwed.
Although you did bring up the point about the multiple did not bring up the fact that the convertible bonds would convert at a 55% premium they don’t convert at the money. Lastly, he’s selling bonds to insurance companies that cannot get exposure to bitcoin, but you also did not bring this point up.
Paper money is being printed, losing value everyday. Bitcoin is best asset in human history. Get paper money, bonds then put all in best asset, keep doing it = infinite money glitch
I'm ecstatic with Trump's victory and the year-end market surge. Which hidden jewels in the upcoming bull run would you buy with 150 grand right now? My goal is to position myself for a prosperous Q1 in 2025.
Well index Funds & ETFs: 40-50%, Emerging Markets (e.g., VWO): 10-15%, Dividend Stocks: 10-20%, Growth Stocks/Small-Caps: 10-20%, REITs: 5-10% Remember to always work with a knowledgeable person in the financial market when starting out to avoid getting burnt.
I agree with you. As an early investor in NVDA, AVGO, ANSS, and PLTR, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Eleanor Bonnici Deskin’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
@@DumbledoreMcCracken elaborate, an asset of nothing? I will argue that The idea of storing your money in a bank in cyberspace that is decentralized and is backed by more energy than the us military uses, and being able to walk out of a country with a billion dollars in your head without anybody knowing is a revolutionary idea.
Typically the convertible bond holders short at least 70% of the shares available from conversion as a hedge. So the conversion would cancel shorted shares not add the full potential of new shares.
@kemingyu4266 Do you realize that institutional holders buying it means absolutely nothing? These are the consequences of QE. The money money has been in wealthy people savings accounts since COVID. This was the biggest wealth transfer ever. These people have plenty of cash and do not know where to invest, so they are pushing asset prices, including crypto, through the roof. Why do you think Blackrock started talking about crypto for the last two years? Wait until the new administration gives them a tax cut and sees what they will with all this cash.
so u think Blackrock is stupid? The largest institutiononal manage fund, only behind US & China. They and their client are the wealthiest people on earth and see what they're doing with Bitcoin. u r not as smart as u think u are
16:06 In your scenario, when BTC hits 200K and bond converts, MSTR's bitcoin goes to 200K from 98K as well. How come this profit is capped at 57K? Besides, the difference between strike price (152K) and purchased price (98K) should be 54K. I don't get how you come up with 57K
You appear to be correct in every way; so does Michael Saylor. It seems like his premise is based on BTC working and being adopted until the bonds mature. The risk is that it doesn't. If it doesn't then the whole this does blow up. But if it does, then the assets of the company grow faster than the liabilities and the bonds convert. Thoughts?
Yet you haven't bought bitcoin? Over the last 15 years it was the best place to put your money. And you still don't own any? Maybe Michael Saylor isn't lucky? Maybe you're just not as smart as you think. Zero bitcoin? Lmao. Hfsp.
The fact that he announces ahead of time when he's buying BTC tells you everything you need to know. What fund manager tells the public BEFORE they buy something?! He'd want to get in as low as possible, not pump up the valuation before he buys. Did Buffet announce that he was buying Apple? What would have happened if he did? He would have ended up paying way more for his Apple stock than he should have.
He’d tell you “well we got all the oil rigs and stuff so assuming people still want gasoline I guess I’d ask the board if we could buy it all back?” Or that’s what he should tell you.
It is estimated that between 3 to 4 million coins will never be recovered, effectively reducing the total Bitcoin supply from 21 million to approximately 17 to 18 million. So almost 20% of bitcoin is lost forever and with more people buying them more chances of losing them. This is Bitcoins achilles heal
Same with gold. How much of it was lost at the bottom of the ocean or burried in a cache to never to recovered again. The amount of gold that exists is less than the amount ever mined since a lot has been lost.
I suspect there is an arbitrage element to this strategy which has thus far contributed to its effectiveness. MSTR is using its corporate structure as a proxy allowing for regulated investors to gain leveraged exposure to BTC, - thereby circumventing restrictions and sucking money out of highly regulated European capital markets - as Euro markets experience increased stagnation and war risk. We shall see.
I saw an interview where he just spewed gibberish about spread this and spread that. It was all nonsense but the comments were full of people saying he is a genius. Same people that will be crying during the next crypto winter
Both MSTR and Bitcoin would crash if everyone decided it was going to be worthless and started selling, and buyers lost money fumbling the bag, all the way to zero. How come this doesn't happen in either case?
@@oo--7714 In theory you buy something either because you think it is the best use for your money or because you think it will generate the best guaranteed return on money, or because it's possible it will return way more money than anticipated and therefore worth the risk
If Microstrategy is selling a $1 note for $3, that means someone is BUYING a $1 note for $3. It's good if you're the seller, but a terrible deal if buying.
You're missing the point they're making profits on the notes. The stock, i.e. the mNAV is pricing in future earnings. This is how all stocks are being priced. This is not a Bitcoin ETF, this is an operating company raking in billions of profits.
This "infinite money glitch" type talk screams of an incoming top to me. This is the kind of stuff you hear before a bubble pops. It reminds me of the "new paradigm" talk that comes up before a bitcoin top
This sounds pyramid-ish: They issue bonds to raise capital for BTC purchases that will increase stock value which in turn draw in more people that want to buy in on the action thus generating "profit" for the previous shareholders.
I think it’s a bad idea to launch into the sponsor segment this soon in the video. I pay for premium, I value not listening to ads that much. So my watch time on this video was 2:32
The idea of storing your money in a bank that is decentralized and more secure than anything else, and being able to walk out of the country with a billion dollars in your head without anybody knowing is a revolutionary idea, hence it will go up forever
I'm going to take a wild guess and say that the financial results from one month after an election goes your company's way are not going to be indicative of your consistent monthly results for the next several years. Also, our financial genius seems to have neglected to explain the part where the stock and/or bitcoin are converted into actual usable money, which has to be received from people with that amount of actual money in exchange for something they believe to be equal in value to that amount of money.
This is a straw man critique. There is no market for traditional bonds. He is accessing pools of capital that only want or can buy converts. They want exposure to bitcoin, not a coupon. He is increasing btc/share w/ this strategy. A multiple of NAV absolutely justified. The question is what should that multiple be. Unfortunately your video does not address this. The current multiple seems to me to be excessive. I'm still trying to figure out what an appropriate multiple should be. I was hoping your video would assist me. Thanks for wasting my time.
part of it is about diluting convertible bond holders by issuing more shares, and if they start trading at bellow asset value they can buy back shares and sell bitcoin. It's foolproof as long as you believe that bitcoin going to 0 means an event that would kill you either way, you can never fail a bet against your own survival, the only thing that can change is the rate of return. When you fail the bet you are nolonger around to face the consequences.
@@shraccIt is basically swing trading bitcoin while using shares for liquidity. You don't need bitcoin to go to 0 for that strategy to begin working against you. If the swing trades begin to work against you, the premium of share price to bitcoin value per share goes up. And it can go up quite a bit without bitcoin going anywhere near 0. If that doesn't bother you as a shareholder, have at it!
You have highlighted a time frame and said "their Bitcoin holdings didn't increase much during this period", In bear markets they buy Bitcoin from the profits of the software business & In the bull markets their stock price rises with bitcoin and they aggressively issue bonds to buy more BTC.
There is no reason to buy this company when you can just buy BTC yourself, avoiding them issuing shares of your btc to others, removing the risk of their bankruptcy, etc.
Basically if you buy 4k in Bitcoin just short this company 2x leverage and you can cover the temp lost on bitcoin if Bit coin lose 50% your get 2x the short and you still have bit coin that may recove the price .
“Sir, what do you say to folks claiming your company is way overvalued compared to your cash position?” Ans: “It’s not overvalued. We exploit the overvaluation to boost our cash position”. Bruh…wut?
I see so many people calling MSTR a Ponzi scheme without even spending an hour trying to understand and analyze it. This means we're still in the early stages of investing in MSTR.
Buy and hold is risky because no one knows what the market will be like in the future, so it is better to trade rather than buy and hold, because in the process of buying and holding you can lose everything when the price falls against your expectations.
So much cope here. Ask yourself this. If this was such a scam why are huge multi-National corporations lining up to subscribe to these convertibles? Hell, every one of them is OVERsubscribed! Do any of you honestly think the fiduciaries of these companies have been outwitted? Study more…you’re not there yet.
🔒Remove your personal information from the web at joindeleteme.com/WSM and use code WSM for 20% off all US consumer plans 🙌
let me gues line goes up
(untill it doesn't)
Have fun being poor.
@@markwilliams7091 everyone will be
Greta , i watch this everyday . Is it possible for you too do a piece on KTM ? and their money issues
Infinite money glitch or realistically ticking time bomb. It's a snake eating its tail
Yeah infinite money glitch = keep raising money in perpetuity because if you don't you'll crash and burn
The moral of this story is: most people have literally no clue about bonds. And for that, this video is gold. Over most peoples heads but probably inspires some folks to look into bonds. Tip of the iceberg here about finance
When I was a little kid I used to dream about having a convertible car but now that I'm an adult I buy convertible bonds
I'm thinking about starting my investment journey, but I feel a bit overwhelmed and uncertain. Do you have any tips or suggestions on who I could reach out to for guidance?
It's a good idea to consult financial experts like Alana Ringberg for guidance on adjusting your investments.
I’m happy to hear about your positive experience! As a beginner, I also faced some initial losses until I started working with Mrs. Alana Ringberg, who is featured on CNBC. She has effectively managed my portfolio, delivering strong returns. I truly appreciate her honesty and exceptional service.
Do you know her? She's amazing and has helped my spouse and me buy our home and car.
Initially, I was hesitant after reading testimonials about Alana, but I decided to give her a chance. Since I started trading with her, I've seen great returns.
Alana handles my investments, allowing me to relax at home and make weekly withdrawals without any trading expertise. She takes care of everything herself.
SURELY this wont end like every other financial engineering scheme
This time it’s different. Apparently 😏
This isn't a pump and dump. Let's all get in now! /s
@@who2u333To be fair, if we got a significant amount of people to throw it all in, it literally couldn't go down!
At least not for a decent timeframe.
Quick everybody throw it all on black!!!
You'll know it's near when he appears on Time Magazine.
well you see there are limited amount of bitcoin therefore unlimited value
it is literally the dumbest argument.. when the air comes out of this it will be epic..
It's only an infinite money glitch as long as Bitcoin doesn't crash.
Crash and literally nothing happens to MSTR. Otherwise please tell me how is it different from the previous bear market when mstr is using the exact same strategy and didn't go bankrupt?
@@kemingyu4266did you even watch the video?? 4:20 onwards
@@kemingyu4266 other scams have survived bear markets before
@@kemingyu4266 lol another leg down on BTC from the bottom of the trough and MSTR would've been margin called into bankruptcy
@@kemingyu4266 To be fair they were quite close to getting wrecked last time. It didn't happen, but if BTC went to like 5k I think he would've gotten either margin called or forced to do a huge share sale
The ride up is glorious, but the crash will be fatal.. Let’s see how this plays out
The crash has already happened every 4 years since 2009
Short it
replace fatal with hilariously catastrophic
@@Mike-xw4gmgood luck.
He’s been doing it for 4 years and and survived multiple 50% drops and is still fine.
Hes going to be flipped upside down when this bull cycle ends next year. It wouldn't be bad if his average was low. He is buying at all time highs though. If he's trying to 2x the retun of Bitcoin. He has to be prepared for the other end of the sword. 2x the losses
He only has 7B debt with 0% interest rate. If Debt matures when his BTC is down, he can issue new 0% convertible bonds to pay off matured convertible bonds. There's no interest expenses. Ponzi breaks when interest expenses.
@@phumkhmertv2028 That's like paying credit card with a credit card.
@@phumkhmertv2028 That only works if people are still willing to buy new convertible bonds at that point.
@@phumkhmertv2028 Ah yes, because investors will be stepping over each other to buy 0% interest convertible bonds to keep the company afloat in a bear market. At a large premium no doubt!
@@phumkhmertv2028: No, he can't issue 0% bonds when BTC is unpopular and the FOMO premium is small or gone. You're missing a VERY important concept with that assumption.
Outstanding Analysis!
Theres a reason Saylor is focused on highlighting the volatility on MSTR because that's what the bondholders are trading. Volatility, they don't want to convert the bonds to shares, they don't even care if the price of MSTR goes up or down. They need it to move and they capture the spread on changes in realized volatility. The btc and equity acts as collateral.
This should be higher. Also explain the stock split. More float, lower price for the volatility. Gamma trading
You're 100% correct.
thank you. an actually intelligent comment instead of insulting him. its actually incredibly clever what he is doing
people should celebrate innovative ideas
Yes, the convertible bond holders short some fraction of the shares. The price goes up, they short more shares. The price goes down they cover some. The convertible bonds gives them cover so they never get blown out of the position. They actually don’t want the price to go up too much because then they are locked in. They want the shares to continually go up and down so they can make money off the changing short positions they have.
Hallelujah! God is still performing wonders. I'm positioning myself for such miracles. This is the best thing I've seen today on RUclips-thank you so much!.540k earned so far.
this seems like the period we need to try Bitcoin, investment?
bitcoin is about to hit $100k Even the market are now very unpredictable. started investing recently when the market prices were a big high,today How do i make good profit. from cryptocurrency,
To be successfully in life one must take risk, investing brings success that’s why the rich will never come out in public to tell you how they make their money
The crypto market has been unfavorable for months and I keep losing my money selling-off during dips, I'm very scared of holding right now, how do you guys still make so much….?
The first step in every successful investment is to establish your goals and risk tolerance, a task best undertaken with the assistance of financial advisor.
You're right! I've been trying to trade but I keep making losses and it's frustrating
Who is your mentor please. how can I reach him/her I really need help
This channel is so underrated
one of the best channels on youtube. 💰i absolutely love every video 📈🇺🇸
@@matt.stevick Hard agree.
@@matt.stevick 4 years from now, you most likely will realize how foolish your statement is. Bitcoin tends to humble those with massive egos.
I've found bitcoin gives people large egos and then strips them away @@bisiriyutajudeen5728
@@bisiriyutajudeen5728 that i enjoy the wall street millennial youtube channel? did you mean to say this?
remember the golden rule: "too good to be true are sus"
If some people told you in 2009, that bitcoin will be $100 in five years while it was still $3 , it is too good to be true 😂😊
😅The difference between a Rogue Trader and a Genius Trader is the direction of the trade
Trader on dealer’s desk losing $1B = Rogue Trader
Trader on dealer’s desk winning $1B = Managing Director
That's deep
The difference is a couple of years. They are a genius until it goes against them. Then they are a rogue trader.
Excellent comment!
He is literally just a degenerate gambler XD using bond money to buy bitcoin omg
10:30 lol this is word salad the same kind of shit bankman-fried spouted
That's how you get rich fool. I think you should go watch dave Ramsey videos 😂
@@isbestlizard he doesnt even look like a gamer tho!
When the music stops there wouldn't be enough chairs for everyone.
@@isbestlizard I may be on the dumber side, but when I hear word salad like that, immediately throws up red flags. Appears to obfuscate what is actually occurring by confusing the listener. If I can't understand what is going on, it's a no go.
When someone uses obscure terms and buzz words to obscure what they do, they're scamming you.
Yeah like Federal Reserve, which isn't federal & has no reserves. The dollar is the biggest scam the world has ever seen.
Anything thats seems to be a "Infinite money glitch" will inevitably become "infinite destruction nuclear bomb". i think we could agree that humankind should have learned this lesson by now 😅
The poster child for the bubble.
Forward PE ratio is also applicable for MSTR
This is the point most ignore intentionally or just for been too green
Cheers from west Africa
🦅
@@criessmiles3620 I own stock in West African Resources. 😘
Bitcoin isn't the bubble. Bitcoin is the pin. Bubbles don't reinflate every 4 years. This is called an adoption cycle. Might want to spend time studying this one. Or not. Bitcoin is going up with or without you.
That last statement can only be made by someone who has seen the future.
@@johnbeach846I thought the bubble was around MSTR
The moral of this story is: most people have literally no clue about bonds. And for that, this video is gold. Over most peoples heads but bonds oh bonds look into it. Tip of the iceberg here about finance
Question. Isnt he connecting the stock market to the crypto market? Like its a reverse funnel.
When crypto goes through its next collapse, wont his exposure pull down his stock price, and by extension his investors will need to sell stock from every facet of their portfolio, causing contagion?
I mean, with that amount of capital, they're definitely using their portfolio for loans and equity.
Ao the next crash will be more widespread and a greater drain on the market as a whole?
MicroStrategy is the most unique stock in the world, because their valuation is based on their balance sheet, rather than their PE ratio like every other companies.
Better than tesla, it's value is based on how much elon tweets
What about the thousands of companies that don't even have PE's ? New to this game ?
@@CarlMartin-hw3ev Yet those companies without PE can't even compete with the top companies in the S&P 500, you're looking at penny stocks. Microstrategy is the only one that's outperformed every stocks in every S&P index, even beating Nvidia since MSTR adopted a Bitcoin standard. You didn't know that?
Costco is another. I'm sure there are more, this isn't my wheelhouse.
“Markets can remain irrational longer than you can remain solvent.” ― John Maynard Keynes
I feel like the market's irrationality is getting worse by the day. Surely it'll have to pop at some point, but are we talking months or years or decades?
it certainly is irrational. Bitcoin has no utility whatsoever, and thus I believe has no intrinsic value.
However, bitcoin is worth what people will pay for it. As long as enough people consider it worth buying, it will maintain value. There are also a finite number of bitcoin. This fact, combined with the fact US government keeps printing dollars, leads me to believe the bitcoin bubble will not pop any time soon.
This all being said, I do believe that bitcoin will fall back to $0 at some point.
@@biometal770 No utility yet, sure, but it does have intrinsic value, which is derived through time and energy.
*I really appreciate your clear and simple breakdown on financial pitfalls! I lost so much money on stook market but now making around $18k to $21k every week trading different stocks and cryptos*
You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires
Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them. People prefer to spend money on liabilities, Rather than investing in assets and be very profitable
You are so correct! Save, invest and spend for necessities and a few small luxuries relatives to one's total assets ratio.
Waking up every 14th of each month to $21,000 it’s a blessing to I and my family… Big gratitude to Josh Olfert🙌
Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦♀️of myself because of low finance but I still believe in God
Powered by bitcoing "reactor"? What in the actual F?! LOL
They puts bitcoins inside a nuclear reactor and they mutate.
Yes! Saylor is performing FUSION of grifter bullshiit and hype with cryptoenthusiast investor greed and thereby generating massive output of 200-300% premium valuation. And for a cryptocurrency that will obviously appreciate 29% per year for 21 years. What could possibly go wrong with any of this brilliant conjecture?
@@the0ne809 makes sense (to Saylor) I guess? 🤣
I think he means that the entire bitcoin network, is analogous to an energy reactor, due to how much energy goes into the network, resulting in the proof of work ‘value’ that bitcoin holds.
@@formxshape that's not what he meant, and it's beside the point. he just want's to hype Mstrat by making bold claims.
I cant believe Im saying this, but this was a little reductive. It ignores that he sold the bonds when MSTR was at 550, and trading at like 1/4.5:btc. I needed this video to fully get it, but its arbitrage of 4 different things: BTC:MSTR Stock: USD: MSTR notes. The notes are key - he locked in the gains from the rapid runup, and then used the premium to buy more btc. Every shareholder is benefiting from the money coming from debt purchasers, who are only institutions and want the risk. Its working because he's using the MSTR ticker as an efficient bridge. If he wasnt controlling the flow - when debt is sold and the terms, when he buys btc and how this wouldnt work, but he is. And thats why people are paying a premium, the perception is that he understands the controls he created.
I sell you whatever you want if I can make 4x shorting it at the price I sold it.
Why do you take the premise of institution wanting risk as a true statement. That is just false and your whole argument does not follow.
@@CSqrdX we can’t assume everyone is an informed actor, but that’s literally why the convertible notes are only available to institutions. The traders buying them both understand and want the reward for taking the risk.
You are saying the arbitrage is an Escher drawing. That only works forever in the fake dimensions of Escher space.
Question: What is the difference between a "retail" investor buying 100 shares, and then selling Calls - wouldn't that capture the "Volatility" better than buying bitcoin and the stock?
It's a scam, buy btc and not mstr. His grift will soon be exposed
Don't buy trash
Not a scam, backing up your business with BTC is a legit strategy thank he was lucky enough to be the first to implement.
Yes, buy BTC, which pushes up the price of MSTR.
Both, BTC as MSTR are SCAMS! Both are going to be exposed with terrible consequences.
@@faitaccompli5878 Shut up
Oh and what happens when the BTC comes up missing and the CEO says oh we don't know where it went but give us more money trust me trust me.
The btc is stored with custodians, that scenario is not possible
@@jgreen6139 All things are possible
@@jgreen6139 it's not unpossible for coinbase to get hacked or block their account
@@jgreen6139love how Bitcoin is supposed to be trustless, yet 5 dudes at Coinbase could steal 20% of all the Bitcoin, and there is no recourse because blockchain is immutable.
Microstrategy revenue a year 500M with a true to profit valuation of 6B. Company now worth 80B in other words overpriced by 74B.
lmao
Sorry, you are wrong.
@@user-iz5yt2bt3h care to elaborate or brain too smooth for that?
You missed the part where they have 35 billion dollars worth of bitcoin
@fransliszt ok where's the other 40 Billion?
So incredibly well explained. Thank you!
Do they still do software stuff?
Yes.
Doesn't matter. Their software is a tiny amount of their profits and risk now. They are a BTC holding company that buys BTC with leverage. Next BTC bear market they are going bankrupt.
It seems like they were a fairly successful independent software company, butI would never buy software from there guys now
Wow what a great analysis and explanation
Essentially everything surrounding crypto currencies are scams. I'm a securities litigation consultant and when going through a portfolio if anything crypto related is present it's a red flag that the client isn't sophisticated and blindly/ignorantly follows hype.
Of course they are. This is standard behavior during crazy bubbles. 2000 Japan bubbles. History tells this tale and this time is no different
Is software hype? You can't just bundle everything together and say it's a scam. You don't know what you're talking about.
Bitcoin is crypto, and it’s not a scam. So your statement is stupid.
@@UnknownWarriorZz leave them behind
What an absolutely dumb comment. Whatever company you're working for must definitely be a failing one.
How is the upside for the convertible capped? Mstr sells the bonds and immediately buy and hold btc. On top of that they are selling the mNAV plus the strike price so they get more btc than if they did a standard bond.
Yeah I thought the same thing. Pretty big oversight on his part.
This reminds me of "infinite money glitches" in the past that I read about in investing books. i.e. there was a time when high PE companies could buy up a low PE company in a completely different industry, and have foolish investors suddenly value the low PE company at the same high PE ratio as the high PE company. So in effect even with paying a slight premium they'd still "print" money by buying up unrelated low PE companies, which allowed them to financially engineer as much earnings increases as they wanted. Until eventually investors realize that they're just a conglomerate of a bunch of completely unrelated businesses, most of which are being badly mismanaged and seeing their earnings decline as a result. And that people is why conglomerates often trade at a low PE ratio.
What you said has nothing to do with what MSTR is doing
@@user-iz5yt2bt3hit is different, but the same. Inflation of asset valuations through marketing rather than profitability through demand side growth based on real necessity.
John Brooks wrote a book about that era, "The Go-Go Years".
Thanks for explaining this to us.
How does any of this truly create value in the real world? All these numbers say is: we played the system and we won. The last one left holding the bag will be screwed.
It's all legal. Don't matter
The intrinsic value of any cryptocurrency is, and must always remain, precisely ZERO.
@@djayjp That's pretty funny, why don't you invest in some AA+ US bonds? The same bonds that got downgraded from AAA?
This is bitcoin, nobody is talking about creating value.
@@grafknives9544 lol exactly there is no value in bitcon.
Although you did bring up the point about the multiple did not bring up the fact that the convertible bonds would convert at a 55% premium they don’t convert at the money.
Lastly, he’s selling bonds to insurance companies that cannot get exposure to bitcoin, but you also did not bring this point up.
What the fk is even going on? The world is absurd.
It’s just too much liquidity and suppressed interest rates ..people are greedy and stupid and don’t learn from history
If finance RUclips was around circa 2008 or 2001 you could comment the same dang thing
Paper money is being printed, losing value everyday.
Bitcoin is best asset in human history.
Get paper money, bonds then put all in best asset, keep doing it = infinite money glitch
Educate yourself. You're too stupid to understand 😂😂😂
You have been massively outperformed over a 15 year time frame. You think it's absurd. Your ego fails you. Learn bitcoin.
I'm ecstatic with Trump's victory and the year-end market surge. Which hidden jewels in the upcoming bull run would you buy with 150 grand right now? My goal is to position myself for a prosperous Q1 in 2025.
Well index Funds & ETFs: 40-50%, Emerging Markets (e.g., VWO): 10-15%, Dividend Stocks: 10-20%, Growth Stocks/Small-Caps: 10-20%, REITs: 5-10%
Remember to always work with a knowledgeable person in the financial market when starting out to avoid getting burnt.
I agree with you. As an early investor in NVDA, AVGO, ANSS, and PLTR, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
Please will you be kind enough to share the details of the man that helped you?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Eleanor Bonnici Deskin’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thank you for the lead. I just searched her name, and I have sent her a message. I look forward to hearing from her.
10:35 "bitcoin reactor"
I smell BS
An asset that's going up 60 percent a year for 4 years is at the least a reactor
@@sean-kb4wrthe price is determined by the last willing buyer. It is an asset of nothing.
@@DumbledoreMcCracken elaborate, an asset of nothing? I will argue that The idea of storing your money in a bank in cyberspace that is decentralized and is backed by more energy than the us military uses, and being able to walk out of a country with a billion dollars in your head without anybody knowing is a revolutionary idea.
@@sean-kb4wr how is spent energy an asset?
Typically the convertible bond holders short at least 70% of the shares available from conversion as a hedge. So the conversion would cancel shorted shares not add the full potential of new shares.
I mean, the whole thing operates thanks to human stupidity, which is endless. So, in a way, perhaps it is.
So true!
Tell that to Jane Street, or Allianz, or the dozens of traders and long term institutional holders. Sure, they are stupid
@kemingyu4266 Do you realize that institutional holders buying it means absolutely nothing? These are the consequences of QE. The money money has been in wealthy people savings accounts since COVID. This was the biggest wealth transfer ever. These people have plenty of cash and do not know where to invest, so they are pushing asset prices, including crypto, through the roof. Why do you think Blackrock started talking about crypto for the last two years? Wait until the new administration gives them a tax cut and sees what they will with all this cash.
Actually, it's the opposite. People investing in bitcoin and mstr are very intelligent.
so u think Blackrock is stupid? The largest institutiononal manage fund, only behind US & China. They and their client are the wealthiest people on earth and see what they're doing with Bitcoin. u r not as smart as u think u are
16:06 In your scenario, when BTC hits 200K and bond converts, MSTR's bitcoin goes to 200K from 98K as well. How come this profit is capped at 57K?
Besides, the difference between strike price (152K) and purchased price (98K) should be 54K. I don't get how you come up with 57K
Great video. All this will be fun to watch if it breaks apart.
When it does
Owners still end up rich. This is one thing that bothers me. Failure = rich
Web3 Infinity's self-governing mechanism is revolutionary. No more centralized control!
I in point of fact to say thanks a lot! you made life easier for me and my family I smile again, 397k made in short time
OMG that's huge I'm from Norway please how can I still smile like you
congrats dear I'm sure this going to be crypto that made you this rich
Someone suggested that crypto trading is far better than buying to hold for a long time but I have no idea whom to direct me or even trade for me.
adriana has really set the standard for others to follow, we love her as she has been really helpful and changed lots of life's
Saving Bitcoin is not a bad idea but trading Bitcoin earn you more.
You appear to be correct in every way; so does Michael Saylor. It seems like his premise is based on BTC working and being adopted until the bonds mature. The risk is that it doesn't. If it doesn't then the whole this does blow up. But if it does, then the assets of the company grow faster than the liabilities and the bonds convert. Thoughts?
In Australia, we've observed several of our mining billionaires simply "dug a lucky hole".
Sailor is the tech equivalent.
Yet you haven't bought bitcoin? Over the last 15 years it was the best place to put your money. And you still don't own any? Maybe Michael Saylor isn't lucky? Maybe you're just not as smart as you think. Zero bitcoin? Lmao. Hfsp.
Basically: Idiots pay premium to nav. That premium allows then to buy more BTC. As soon as preoum goes to, or below NAV, it's joever.
The fact that he announces ahead of time when he's buying BTC tells you everything you need to know. What fund manager tells the public BEFORE they buy something?! He'd want to get in as low as possible, not pump up the valuation before he buys. Did Buffet announce that he was buying Apple? What would have happened if he did? He would have ended up paying way more for his Apple stock than he should have.
His assumption is that Bitcoin will go up 29 percent a year for 21 years, in that case there is not top
Good point.
Thing is he did the same at the last ath in 2020.
It´s like asking the Exxon CEO what if his stock goes to zero.
He’d tell you “well we got all the oil rigs and stuff so assuming people still want gasoline I guess I’d ask the board if we could buy it all back?” Or that’s what he should tell you.
This will end badly
Forward PE ratio is also applicable for MSTR
This is the point most ignore intentionally or just for been too green
Cheers from west Africa
🦅
Saylor seems on par with Jim Simons
Does anyone else get John McAfee vibes when listening to Michael Saylor’s spiel? Hey, what the heck, this time is different. 😂
McAfee was great. Hope he's still alive somewhere.
no
It is estimated that between 3 to 4 million coins will never be recovered, effectively reducing the total Bitcoin supply from 21 million to approximately 17 to 18 million. So almost 20% of bitcoin is lost forever and with more people buying them more chances of losing them. This is Bitcoins achilles heal
Same with gold. How much of it was lost at the bottom of the ocean or burried in a cache to never to recovered again. The amount of gold that exists is less than the amount ever mined since a lot has been lost.
Very ponzi
Forward PE ratio is also applicable for MSTR
This is the point most ignore intentionally or just for been too green
Cheers from west Africa
🦅
@@criessmiles3620 Scammer detected
Yes you are
@@user-iz5yt2bt3h I have a real job. I don't own any paper assets at all for the moment.
@@criessmiles3620 Oh look. Another scammer
I suspect there is an arbitrage element to this strategy which has thus far contributed to its effectiveness. MSTR is using its corporate structure as a proxy allowing for regulated investors to gain leveraged exposure to BTC, - thereby circumventing restrictions and sucking money out of highly regulated European capital markets - as Euro markets experience increased stagnation and war risk. We shall see.
I saw an interview where he just spewed gibberish about spread this and spread that. It was all nonsense but the comments were full of people saying he is a genius. Same people that will be crying during the next crypto winter
It was not gibberish. It's just that you are not smart enough to understand it.
@@user-iz5yt2bt3h That's what they said about Jordan Peterson and he is talking Dragons now as a cover for his religious views.
U are not smart enough to understand it dude lol 😂😂😂
I can't understand the gibberish either. Not saying I'm the smartest person, but when I can't understand something, that's a big red flag.
@@biometal770😂😂😂😂 red flag because you can’t understand it lol you can’t be serious
"That's not UNpossible" - The CEO is a clown
A very rich clown though.
hahahaha i couldn’t believe it when I heard it
My man is a Simpson's Character.
It’s a perfectly cromulent word, and I wouldn’t be so critical of someone trying to embiggen the financial well being of every day people.
Me run Ponzi scheme? That’s unpossible!
Both MSTR and Bitcoin would crash if everyone decided it was going to be worthless and started selling, and buyers lost money fumbling the bag, all the way to zero. How come this doesn't happen in either case?
Some people view it as valuable. Crypto is a 2 trillion dollar industry it will not collapse in while.
@@oo--7714 In theory you buy something either because you think it is the best use for your money or because you think it will generate the best guaranteed return on money, or because it's possible it will return way more money than anticipated and therefore worth the risk
If the dictionary had a picture to illustrate what a disgusting scammer is this guy would be it.
Study before you say something.
If Microstrategy is selling a $1 note for $3, that means someone is BUYING a $1 note for $3.
It's good if you're the seller, but a terrible deal if buying.
You're missing the point they're making profits on the notes.
The stock, i.e. the mNAV is pricing in future earnings.
This is how all stocks are being priced.
This is not a Bitcoin ETF, this is an operating company raking in billions of profits.
But the buyers have FOMO and think they're buying $10 for $3. At SOME point, the reality will come to light.
Good to know that this "glitch" is just investors overvaluing the CEO by 100%.
This "infinite money glitch" type talk screams of an incoming top to me. This is the kind of stuff you hear before a bubble pops. It reminds me of the "new paradigm" talk that comes up before a bitcoin top
If someone has full faith in Bitcoin (a maximalist), why wouldn't they just buy Bitcoin itself?
And when btc goes down the stock will tank hard. Be a penny stock.
This sounds pyramid-ish:
They issue bonds to raise capital for BTC purchases that will increase stock value which in turn draw in more people that want to buy in on the action thus generating "profit" for the previous shareholders.
If social media influencers are bullish. Good luck
I think it’s a bad idea to launch into the sponsor segment this soon in the video.
I pay for premium, I value not listening to ads that much.
So my watch time on this video was 2:32
They are not a software company anymore, they are a BITCOIN-ETF?
They're a crypto hedge fund that makes software on the side
I cant believe stock buyers are willing to pay a ridiculous premium
This moronic way of raising cash will be a case study in the future after the crash. There zero chance this keeps up in the long run
definitely
The idea of storing your money in a bank that is decentralized and more secure than anything else, and being able to walk out of the country with a billion dollars in your head without anybody knowing is a revolutionary idea, hence it will go up forever
I'm going to take a wild guess and say that the financial results from one month after an election goes your company's way are not going to be indicative of your consistent monthly results for the next several years.
Also, our financial genius seems to have neglected to explain the part where the stock and/or bitcoin are converted into actual usable money, which has to be received from people with that amount of actual money in exchange for something they believe to be equal in value to that amount of money.
This is a very astute video that shows that the stock is more of a risk rather than a scam.
Saylor can force the note holders to convert to equity early if the stock price hits the convert price
Nice content. To me, trading the forex and crypto market is way better than any online investment 💯
Hello, I want to start investing, but I'm unsure where to start. Do you have any advice or contacts for assistance?
Thanks to my co-worker (Alex) who suggested Mr Mark hutchinson
He’s a licensed broker, very big in the states 🇺🇸. Though I met him in Texas , I did my research.
WOW 😳I know him too! Mark hutchinson is a remarkable individual whom has brought immense positivity and inspiration into my life.
I got started with a miserly $7000. The results have been mind blowing I must say
TBH!!
If the Bitcoin holdings is 35 million, convertible bonds is 7 million, his is the leverage ratio 1.2x? How is the leverage ratio calculated?
This is a straw man critique. There is no market for traditional bonds. He is accessing pools of capital that only want or can buy converts. They want exposure to bitcoin, not a coupon. He is increasing btc/share w/ this strategy. A multiple of NAV absolutely justified. The question is what should that multiple be. Unfortunately your video does not address this. The current multiple seems to me to be excessive. I'm still trying to figure out what an appropriate multiple should be. I was hoping your video would assist me. Thanks for wasting my time.
This channel finally got one right, mstr is a complete financial house of cards
Nothing goes up forever that’s for sure ..sooner or later poof 😂
If you’d have to bet your life on either shorting or going long on MSTR… what would you do? I know what I would and it implies borrowing shares ….
He couldn't explain it in English so its nonsense at best !!
Buy btc and ignore saylor, he is not making any sense
part of it is about diluting convertible bond holders by issuing more shares, and if they start trading at bellow asset value they can buy back shares and sell bitcoin.
It's foolproof as long as you believe that bitcoin going to 0 means an event that would kill you either way, you can never fail a bet against your own survival, the only thing that can change is the rate of return. When you fail the bet you are nolonger around to face the consequences.
@@shraccIt is basically swing trading bitcoin while using shares for liquidity. You don't need bitcoin to go to 0 for that strategy to begin working against you. If the swing trades begin to work against you, the premium of share price to bitcoin value per share goes up. And it can go up quite a bit without bitcoin going anywhere near 0. If that doesn't bother you as a shareholder, have at it!
You have highlighted a time frame and said "their Bitcoin holdings didn't increase much during this period", In bear markets they buy Bitcoin from the profits of the software business & In the bull markets their stock price rises with bitcoin and they aggressively issue bonds to buy more BTC.
Unpossible. That's all we need to know.
There is no reason to buy this company when you can just buy BTC yourself, avoiding them issuing shares of your btc to others, removing the risk of their bankruptcy, etc.
You are wrong. Study.
Basically if you buy 4k in Bitcoin just short this company 2x leverage and you can cover the temp lost on bitcoin if Bit coin lose 50% your get 2x the short and you still have bit coin that may recove the price .
“Sir, what do you say to folks claiming your company is way overvalued compared to your cash position?” Ans: “It’s not overvalued. We exploit the overvaluation to boost our cash position”. Bruh…wut?
I see so many people calling MSTR a Ponzi scheme without even spending an hour trying to understand and analyze it. This means we're still in the early stages of investing in MSTR.
Facts
You seem like a big MSTR fan. How many investors have you convinced (recruited)?
yeah the comments here are hilarious, popcorn time for me
SEC Should lock him up
14:14 sounds like a Ponzi scheme
Excellent video. Tysm❤
Thank you Lord Jesus for the gift of life and blessings to me and my family $23,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️
6 months, $17k invested and almost there too!!
Next year, I'll reach $185k.
And what have you been doing during this time? Trading or maintaining?
Buy and hold is risky because no one knows what the market will be like in the future, so it is better to trade rather than buy and hold, because in the process of buying and holding you can lose everything when the price falls against your expectations.
How did you do this please? I am new to investing in cryptocurrencies, can you please guide me on how to do this?
It is advisable to seek professional guidance when creating a solid financial portfolio due to its complexity.
MicroStrategy also uses leverage to buy BTC so that's why it should move more than BTC in percentages
So the smart play isn't to buy the stock but the convertible and hope the company doesn't go bankrupt
Even if it does go bankrupt, the bond holders get the remainder of whatever's left first n stock holders get completely wiped out in most cases.
No, you pay a premium on the convertible note.
That note is for the fixed income market who can't have exposure to stocks or spot Bitcoin.
"inifinite money glitch until it isn't anymore. then it will destroy both microstrategy as well as BTC.
The company is a scam. Just saying..
MSTR will always trade at 75% discount to future MNAV
So much cope here. Ask yourself this. If this was such a scam why are huge multi-National corporations lining up to subscribe to these convertibles? Hell, every one of them is OVERsubscribed! Do any of you honestly think the fiduciaries of these companies have been outwitted? Study more…you’re not there yet.
the same fiduciaries that valued WeWork at 47 billion before it went bankrupt?