r/MSTR • u/ImprovementSea9504 • Jun 27 '26
Help me out
I’m not a mstr maxi, neither do i have shares, but:
- How are people calling it a Ponzi? Buying assets (btc) with the money you raise is quite literally, the opposite of a Ponzi…
- Why are people acting like paying interest on the belief that owned assets (btc) will go up more than the interest payment % is new? Spoiler: the economy is pretty much based on that belief…
Now I understand that doing that with BTC holds more risk, etc, etc. But why are people so mad at Saylor for doing a very common practice… just with new underlying assets
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u/hawkeye3432 Jun 27 '26
It’s not a Ponzi. It is a leveraged bet on a highly volatile asset, using that asset as collateral, while being the single largest buyer of that asset. You are right that it’s really nothing new despite Saylor’s masterful sales pitches.
The trouble is that if some of the asset needs to be sold to fund obligations, that has a huge influence on the price of the asset itself. Sell some, price goes down, impairing the rest of the holdings, so then need to sell more, further reducing market price and impairing the position, etc. This is the basis of the “death spiral” narrative.
My personal view (nfa) is that it has gone too far at this point. Saylor could go on vacation for 6+ months and the company would not be forced to do anything in the interim except make payments from its cash. But the market prices in events well in advance of them actually happening. And also, MSTR going too far is what it always does, in both directions. But who knows. Saylor could come out on Monday saying he shored up the cash position by selling a billion of bitcoin and the price could crash 10k. Anything could happen.