Tuesday, March 29
"If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes." -Warren Buffett
Crypto Fast-Food
Is MicroStrategy A Better Buy than BTC?
Twitter Memes of The Week
Crypto Fast-Food 🍟
Terra (ticker LUNA) claims to be buying $10 BILLION worth of Bitcoin (~232,975 BTC) for their reserves 🔥… 🚀
✈️ 30,000-ft view » that’s roughly double that of the largest, Nasdaq-listed corporate whale, MicroStrategy, coming in @ 125,000 BTC. #BullRun_2022
Bitcoin News 🚀
📈 Bitcoin’s price moved 4% upward following a $135 million dollar purchase of BTC by Terra (LUNA), the eight largest cryptocurrency by market cap.
MicroStrategy to buy $250 million of BTC after receiving a collateral loan
🤑 Study by GrayScale Investments® reveals » 25% of U.S. Investors Currently Own Bitcoin
Ethereum News
Google searches for “Ethereum Merge” has exploded » it received a perfect Google Trends score of 100 🔥
📈 Meaning » general optimism and interest in Ethereum (ETH) is literally skyrocketing 🔥🔥🔥 🚀
Political News 💸
US government expects to collect $5B in revenue from crypto taxes in 2023
Russian Energy official talk BTC.. 🤔
“If they want bitcoin, we will trade in bitcoin” said Pavel Zavalny, being open to various payment methods for their oil & gas exports for Turkey and China.
Current Events 👀
Raoul Pal swoop’d up an ape nft for a mini-fortune, $400,000 US dollars
Is MicroStrategy A Better Buy than BTC?
MicroStrategy — the first publicly traded company to buy Bitcoin as their treasury reserve asset — has seen their stock skyrocket nearly 1,000x since they started accumulating BTC
For all you crypto newbs, Micheal Saylor is arguably the most influential Bitcoin-Maxi on Twitter and he runs this little company called MicroStrategy.
He is best summarized as a greek philosopher with the tenacity of a Spartan warrior ⚔️
3 Reason To Buy MicroStrategy
Buying Crypto as a Newb is scary 🧟♂️
MicroStrategy is a great proxy for owning Bitcoin
MicroStrategy is basically a Bitcoin Mining Machine, converting cash-energy into BTC ⚡️
The Numbers
Since the Printdemic of 2020, MicroStrategy was worth around $125 per share. At the peak of the madness, its valuation exploded to $980 per share, a return of ~850% 💸.
🤨 Meanwhile, during that same period, the S&P 500 produced a measly 200%.
MicroStrategy made buying Bitcoin, its official corporate strategy in 2020. They called the move a defense against the U.S. dollar’s potential devaluation.
Ever since, companies like Tesla, Square and Everbowl have adopted The Bitcoin Standard, converting a portion of their cash reserves into Bitcoin.
Like a Spot Bitcoin-ETF
MicroStrategy is not merely a cash-generating technology company. They are kind-of-like a sophisticated, spot Bitcoin-ETF with leveraged option trading.
Why? Because MicroStrategy trades on exchanges, and so you get all the derivative products that come along with it — for example, Call & Put Options.
Additionally, MicroStrategy finds creative ways to procure Bitcoin. For example, the $205M Collateral Loan From Silvergate to Buy Bitcoin. Here’s a few words from the G.O.A.T.:
“Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy” says Michael Saylor (CEO of MicroStrategy).
You might be wondering… but what does MicroStrategy do with all those millions of dollars they generate from their core business???
They turn around and… BUY MORE BITCOIN. 🎰
They are like a synthetic, Bitcoin Mining Machine. The energy they consume generates fiat which in quick order is converted into BTC.
TLDR:
MicroStrategy is a great way to gain exposure to Bitcoin. Not only do you get bitcoin exposure, but you get a profitable, successful company as well. The only problem?
If Bitcoin falls below $30k, people might be calling the company this… 😳
DISCLAIMER
THE VIEWS AND OPINIONS EXPRESSED BY THE AUTHOR ARE FOR INFORMATIONAL PURPOSES ONLY AND DO NOT CONSTITUTE FINANCIAL, INVESTMENT, OR OTHER ADVICE. BLAH, BLAH, BLAH, BLAH…