Because of the crazy acquisitions of Bitcoin in the past two years, Michael Saylor has become a veritable “big gambler” in the field of cryptocurrency.
At present, MicroStrategy( broth system MSTR) hampers a total of 105, 000 bitcoins, accounting for 0.5% of the total bitcoin supply, ranking firstly among rolled companies in the world.
Others use Bitcoin to diversify resource grants and fight inflation, while Thaler is likely to expend Bitcoin to gamble on the future of companies and individuals.
From MIT graduates, to CEOs of rostered fellowships, to today’s Bitcoin superman, if you look back at Thaler’s life trajectory, it is not difficult to find that ” ALL IN” has always been his philosophy of man.
A public business holding 100,000 bitcoins
If you look at the financial report, you will find that by Q1 2021, the total assets of micro-strategies are likely to be US $2.443 billion, of which US $1.946 billion will come from digital resources. On the cash flow statement, the company spent US $1.086 billion in the first three months of this year, of which merely US $447,000 was used to purchase chosen resources and other “real assets”, which means that 99.96% of the money wasted was used to buy Bitcoin . .
This also made the veteran staff of MicroStrategy very upset. It was originally a business intelligence software company, but now the investment in BI software research and development is only 29.482 million US dollars, which is not even a fraction of the money to buy Bitcoin.
“Thanks to the special strange currency of this matter, we feel these employees, the company is a bit much work.] Employees represented in the job site Glassdoor.
Micro Strategy 2021 Q1 Cash Flow Statement
At the July 2020 quarterly meeting, Saylor announced that MicroStrategy plans to purchase bitcoin, golden and other alternative assets to oust the money still held on the balance sheet.
One month later, Microstrategy applied $250 million in cash in stock to purchase 21,454 Bitcoins.
In September and December 2020, MicroStrategy wasted another 175 million and 50 million U.S. dollars to buy Bitcoin.
The company’s $ 500 million in cash has been wasted to buy such a little bit of Bitcoin? Maybe it is not enough. Thus, a drastic panorama in its own history of certificates showed :
On December 11, 2020, MicroStrategy published US $650 million in convertible alliances, all of which were used to buy Bitcoin.
It is recognized in the industry that Thaler has created two firstlies: Let MicroStrategy become the first rolled corporation in biography to buy Bitcoin and incorporate it into its fund grant approach; it is the first company that dares to acquire other people’s money to buy Bitcoin.
Of course, borrowing money to buy coins is very courageous, and the rebuke is not big. Citi reporters have repeatedly published negative remarks. After MicroStrategy really announced the issuance of convertible ligaments, they directly downgraded its rating from “Neutral” to “Recommended Sell.”
What’s interesting is that the stock price of micro-strategy has not fallen; on the contrary, following the publication of convertible bonds, the stock has started a new round of rising cycle.
On February 9 this year, due to the very popular MicroStrategy World 2021 works, the Microstrategy share premium rose to the highest point in biography, closing at US $1272.94. A few days later, investment sensibility came back, but it remained above US $900.
https://finance.yahoo.com/quote/MSTR/
Traditional financial institutions disagree with the freak of microstrategy. Standard& Poor’s Global Ratings Corporation rated the issuer’s credit rating of the micro-strategy as “CCC+ “, which is lower than “investment grade.” HSBC simply proscribed purchasers from buying micro-strategy assets, saying that HSBC has no interest in this “virtual currency”.
However, the market’s ebullience for micro-strategies is most important. On June 14 this year, MicroStrategy announced the completion of the issuance of senior procured records with an estimated value of US $500 million. The marketplace is extremely popular with this bond.
After receiving the money, on June 21, Wei Strategy bought 13,005 bitcoins again. So far, MicroStrategy holds a total of 105, 085 bitcoins, accounting for 0.5% of the total bitcoin supply, ranking first among scheduled companionships in the world.
Calculating the cost, the micro programme expended a total of US $2.741 billion, with an average holding cost of US $26,080. Among them, 92,000 bitcoins are handed back to the subsidiary “MacroStrategy”( MacroStrategy) management.
It can be said that the micro policy is betting on Bitcoin. It situated all its hopes on the value-added of Bitcoin, and its own business has formed little progress. Without the output of the “real economy”, the company simply cannot use enough income to repay interest.
On the surface, the convertible alliance will not mature until 2027, and the coupon charge is 0, which means that it will only be used to pay the principal after 6 years. There will be no pressure to pay interest for a long time in the future. There is particularly high pressure on cash flow; nonetheless, once there is a super bear market like in 2014 or 2018, and the price of Bitcoin plummets by more than 50%, the micro programme will become insolvent and on the verge of insolvency. At that time, if the micro programme does not want to go bankrupt, the only option is to sell Bitcoin for cash.
When the epidemic began to sweep the United Nation, the stock price of Micro-Strategy was in a long-term downturn, almost in a straight line, maintaining at high levels of $ 128 per share. On August 11 last year, when MicroStrategy bought Bitcoin for the first time, the stock price did not fluctuate hugely, but from the working day on, MicroStrategy began to get rid of the sluggish liquid that has been a long time ago.
Earlier, there was news that MicroStrategy was to be held at 105,000 Bitcoins, with a cumulative loss of more than 500 million U.S. dollars, and was also cautioned by Bloomberg that there would be an asset write-down of 77 million U.S. dollars.
But if you calculate carefully, you will find that the media reports are biased: the average cost of micro-strategies to buy coins is $26,080 per coin. As of this writing, the price of Bitcoin on the FTX exchange is $34,960. A rough figure is to invest in Bitcoin. Coin’s profit is also 933 million U.S. dollars, far transcending the net income of traditional professions in recent years. As far as the company’s asset cost is concerned, even if it has recently fallen, it has remained above US $500, far exceeding US $120 at the beginning of last year.
In addition, according to recent data from Forbes this year, Thaler’s personal resources exceed US $2.3 billion, returning to the ranks of billionaires, ranking 1362 in the world. Ranked fourth in the cryptocurrency rich list, second only to the founders of Coinbase, FTX and Ripple.
If Bitcoin’s subsequent rise and fall are put aside, at least for now, Thaler’s programme of gambling on Bitcoin is considered a success.
Life is to play games with God, there is nothing if you don’t have “All In”
People like to tell you that Saylor is a “zealot”( zealot ). On this site, Saylor declared more than twenty years ago.
My belief is: If you want to play a game, it’s best to be All In. There are no objections. I don’t believe that those who keep their hands alone can have the last laugh.
Saylor believed in Christianity and was christened. But in their own views, living in the real world is like playing a game with God.
Look at my ring-there is a dam, right, and a beaver. This beaver is playing games with God in the waves. Edison was also playing a game with God. Rockefeller, Carnegie … This group of beings are just like me, they are just playing a game in this life.
Like the founders of other engineering fellowships, Saylor also has a life experience that is almost legendary. After a whole life of hesitation and clash, I have a deep event of life like a play.
“Time” had interviewed Saylor before. The reporter did enough homework and asked he
“Why does Bitcoin have such a reputation for ordinary people? “
The reporter was referring to the noise from traditional finance. Warren Buffett once said that Bitcoin is “the square of rat poison”, and this year he refused to discuss Bitcoin at the shareholders filling; JPMorgan Chase CEO Jamie Dimon said that Bitcoin is a “scam” and that Bitcoin is a waste of time, hires If he dared to fry coins, he just opened it.
Thaler’s reaction was very mild :
This is a problem of paradigm alteration , no one can be denounced. What’s more, these people are very smart, so they can be so successful in their vocations. We can look back at autobiography, and it is not difficult to understand: When electricity was invented, most people on the earth could not understand what it was for 24 months after hearing the word. There is a philosopher named Thomas Kuhn at Harvard who formerly said this: a new paradigm intends a radical change in the way of looking at the world countries, and vested interests often will not accept this new thing. Our simple hope is for the next generation. Because, unless there is a war or a very serious occurrence, these vested interests will change their ideas; young people are not the same.
The reporter asked, “Then, do you have any ambitions?”
Saylor only said one sentence: ” I want to repair the balance sheet of the world.”
On one occasion, Saylor told reporters in Washington, D.C .:
I never said that I wanted to change everything in the world. But if you want to lead the world from stupidity to knowledge, or even “omniscience, ” there is something religious in it. But to be honest, if God came to the mortal world, he would detest the world now.
Strong personality, perseverance and unhesitating force, and creed in the “All In” philosophy. From this perspective, it is not surprising that Seller bet on Bitcoin.
Understand and believe
On May 15 this year, Saylor posted a very short tweet: “Bitcoin Forever.”
I have to say that having such a wizard betting on Bitcoin is both lucky and an accident for the Bitcoin community.
As a book-loving Christian, Saylor should understand that medieval Christianity had a controversy that affected the history of modern science: Is it because of belief that people understand the content of their beliefs? Or is there faith because you understand the content?
Thaler’s Bitcoin beliefs are not groundless. Before deciding to buy Bitcoin, he has carefully compared various financing alternatives such as cash, bails, capitals, gold, real estate properties and Bitcoin.
Calculated based on the current supply of M2 in US dollars, it will increase by 5% in 2020, and it will increase by 24% every year for the next 20 years. This means that purchasing power is declining. At least for the next three to four years, the banknotes we support will devalue by 15% every year. The macro economy still has an annual inflation rate of 2 %. After this account is calculated, the Fed is like sneaking into your backyard and blatantly looting your wealth.
In the currency business, the dollar will become weaker and weaker. This means that the capital market, real estate market, stocks, and amber are not so good. The actual pace of return on investment is almost zero or even negative. “In contrast, Bitcoin is a hundred times better than gold, or even a million times better. I will not sell Bitcoin. I want to hold Bitcoin for a hundred years.”
Of course, countless parties have asked him: Isn’t your firm doing Bitcoin ETF? If Bitcoin descents, isn’t the company going to end?
Saylor is very firm: ” Bitcoin is not a security at all! Bitcoin is money! “
For him, understanding is faith, and faith is understanding. This is true whether it is Christianity, earthly man, or Bitcoin.
In the eyes of the outside, the huge volatility of Bitcoin conveys extremely high risks, and the combination of leverage spawns the company on the verge of insolvency at any time, which is extremely insulting to investors. In additive, the high degree of simplification of the investment portfolio likewise exposes micro-strategy inventories to same or even higher risks to Bitcoin and is a “Strong Sell” target.
However, with Thaler’s courage, even if Bitcoin does plummet, it is estimated that he will not “repent”.
He has always been the man who has no hesitation, the smart kid who earns money by interpret volumes in the Air Force compound, the Massachusetts schoolmaster who likes to jump to the ceiling to play the guitar, and the technical original who wants to create a business delusion that they are able to last-place for generations.
That gambler who believes in Bitcoin.