Maximum Bitcoin Insanity
Michael Saylor’s MicroStrategy(MSTR) is doing, yet again, another issuance of convertible bonds to finance additional purchases of Bitcoins. How many times can he keep going to the well to find more suckers to pony up added billions of dollars?
The only reason he has gotten away with it for this long is by using convertible bonds with a promised high yield. No one would pay multiples of the value of the Bitcoin being purchased to buy the worthless common stock. The ponzi scheme ends when either Bitcoin starts to drop and or one of these convertible bond financings fail.(possibly this one)
The fools buying these converts are never going to see the price of the common go high enough to make them worth converting and when the company can no longer sell additional converts to pay off the holders of the earlier ones, the whole thing is going to come crashing down into the steaming pile of shit that it clearly has been all along.
Does a drop in the price of Bitcoin trigger the collapse, or does a failed convert offering cause the Bitcoin price to tumble? It is just a matter of when, and today is as good as any, for the insanity to reach it’s peak and reality to replace fantasy!
SMST, for those who can chart.
Leverage on top of leverage, I love it. To get really crazy, you can buy calls on this. If I get the right set up and a reasonable price I am going to buy long term calls on this!
CM — please keep us posted on the call strategy — could be interesting play!
Will do. For now it is watch and wait as Bitcoin refusing to breakdown, so far. Part of that is everytime it looks like it is running out of gas and about to rollover, Saylor does another convertible offer and pumps it up again. However, each follow on offer is having a diminishing effect. It shouldn’t be much longer before one of them fails and it will be game on.