Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MICROSTRATEGY INCORPORATED

(MSTR)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Not Satoshi's vision: Is MicroStrategy in danger of becoming Bitcoin's central bank?

06/22/2021 | 07:51am EDT

Something strange has happened over the past several months, and it’s transpired right under everyone’s noses – Bitcoin has become centralized.

During the course of the pandemic, one by one, publicly traded companies have lined up to buy (relatively) cheap BTC, but one has outbought them all. Microstrategy now holds more than 105,000 total Bitcoin holdings worth somewhere in the region of $3.5 billion, after this morning’s announcement, making the company the world’s the second largest holder of the leading crypto. 

These stacked sats, and the implications of being a publicly traded company holding so many, have left many people with expectations that they may be forced to live up to as the markets struggle to find support.

Just like many others in the industry, I’m a member of many (too many) trading groups and collectives across all the apps. This week, though, something happened that hasn’t happened before. People started openly wondering if Microstrategy would ‘bailout’ Bitcoin.

Think about that for a second.

Satoshi Nakamoto, whomever that person (or persons) may be, initially created Bitcoin as a reaction to the government bailouts during the Great Recession. The whole point, according to Bitcoin’s white paper, was to avoid the centralized policy making that BTC’s creators thought might potentially doom traditional forms of money such as the US Dollar, and other failed currencies including the Russian Ruble, Zimbabwe Dollar, and so on.

Where it started

Last fall saw Michael Saylor — who, until recently, was a relatively unknown, middling CEO with a mediocre track record and a dubious history of spending company funds — all of a sudden catapulted into quasi-celebrity status because he used money that isn’t even technically his to buy billions worth of Bitcoin, and stake his entire company’s future on it.

At first, Microstrategy used cash-on-hand (treasury assets) to buy Bitcoin. Widely hailed in the cryptosphere, it was questioned or seen as foolish by many in traditional markets. Even then, though, as MSTR’s price began to skyrocket, a lot of that doubt subsided – until the company pivoted to issuing debt to buy further amounts of BTC.

How it’s going

China’s increasing crackdown on Bitcoin has brought significant downward pressure, and with prices now revisiting lows not seen since January, people are starting to look for a white knight, a savior to solve their problems and send BTC higher. They’re increasingly looking for a centralized entity that has the power to create a plan to install a price floor and keep things from getting too far out of hand.

Based on MSTR’s entrypoint late last year, Saylor needs BTC to stay above $20,000 to remain profitable. Downward price action on Bitcoin earlier this year caused him to instruct Microstategy to issue debt (sound familiar?) to buy more Bitcoin (again, familiar?) in order to prop up its price (very familiar).

Microstrategy has taken the role of a central bank, to a degree, issuing debt to artificially raise the price of an asset deemed systemically important by many. The very same people ridiculing the Federal Reserve with memes saying “money printer go brrrr” celebrate virtually the same action from a publicly traded company because it aligns with their goals – funny how that works.

Aside from worrying about the long-term implications to Microstrategy’s finances, and what the fallout would be if the bottom ever fell out from the digital assets market, this whole development is the antithesis of Satoshi’s vision.

But, will there be another Bitcoin bailout?

Ryan Gorman is co-founder of Trade The Chain, a global Discord community of traders using AI-driven sentiment indicators and real time, actionable alerts to make more informed trading decisions.

To learn more about Trade the Chain, please visit tradethechain.com

Twitter: www.twitter.com/gormoexjourno

LinkedIn: www.linkedin.com/in/rgorman

The post Not Satoshi’s vision: Is MicroStrategy in danger of becoming Bitcoin’s central bank? appeared first on CityAM.

© City AM, source Newspaper

All news about MICROSTRATEGY INCORPORATED
07/30MICROSTRATEGY INCORPORATED : Canaccord Genuity Adjusts MicroStrategy's Price Tar..
MT
07/30MICROSTRATEGY INCORPORATED : BTIG Adjusts MicroStrategy's Price Target to $950 F..
MT
07/29MICROSTRATEGY : Q2 Earnings Snapshot
AQ
07/29MICROSTRATEGY INCORPORATED : INC Management's Discussion and Analysis of Financi..
AQ
07/29MICROSTRATEGY INCORPORATED : Earnings, Sales Increase in Q2; Kicks Off Chief Fin..
MT
07/29MICROSTRATEGY INCORPORATED : Earnings Flash (MSTR) MICROSTRATEGY Posts Q2 EPS $1..
MT
07/29MICROSTRATEGY INCORPORATED : Earnings Flash (MSTR) MICROSTRATEGY Posts Q2 Revenu..
MT
07/29MICROSTRATEGY : Announces Second Quarter 2021 Financial Results
BU
07/29Microstrategy Incorporated Reports Earnings Results for the Second Quarter En..
CI
07/29Microstrategy Incorporated Announces Digital Asset Impairment Losses for the ..
CI
More news
Financials (USD)
Sales 2021 510 M - -
Net income 2021 -398 M - -
Net Debt 2021 - - -
P/E ratio 2021 -16,5x
Yield 2021 -
Capitalization 6 540 M 6 540 M -
Capi. / Sales 2021 12,8x
Capi. / Sales 2022 12,3x
Nbr of Employees 2 034
Free-Float 42,2%
Chart MICROSTRATEGY INCORPORATED
Duration : Period :
MicroStrategy Incorporated Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MICROSTRATEGY INCORPORATED
Short TermMid-TermLong Term
TrendsBullishBearishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 5
Last Close Price 670,93 $
Average target price 682,50 $
Spread / Average Target 1,72%
EPS Revisions
Managers and Directors
Michael J. Saylor Chairman & Chief Executive Officer
Phong Q. Le President & Chief Financial Officer
Timothy Edwin Lang Chief Technology Officer & Senior Executive VP
Jarrod M. Patten Independent Director
Carl J. Rickertsen Independent Director
Sector and Competitors
1st jan.Capi. (M$)
MICROSTRATEGY INCORPORATED72.68%6 540
ORACLE CORPORATION39.20%251 420
SAP SE15.07%172 253
INTUIT INC.39.58%146 483
SERVICENOW, INC.7.82%117 587
DOCUSIGN, INC.35.84%58 834