Apple P/E is around 30, not 3.
You would do well to take the time to understand why MSTR did what they did.
You would do well to take the time to understand why MSTR did what they did.
You have read Lyn's post on QE - great!
Here's how I view it, and I believe Saylor as well: cash loses double digit % purchasing power annually for the things you want to buy and hold.
You can hold on to your melting pile of cash, or you can deploy that capital elsewhere. Art, wine, stonks, negative/0 yielding bonds, real estate, crypto kitties, or an asset that has been appreciating at a clip of 200%/yr.
Question is not why btc, but why would you put yourself at a disadvantage by holding fiat reserves.
- Why is the Company holding so much cash? Most companies do not hold 60% of their market value in cash or other assets unrelated to their core lines of business. Why is MicroStrategy making this choice?
- Why will the Company not return the excess cash to shareholders instead of running an investment book on the side?
- Revenue is declining in a market that is experiencing growth. Why is management focused on the minutiae of treasury management instead of fixing the core business?
It's not fiat vs BTC, it's about why is the company holding so much cash in the first place?
As an investor, if I want to bet on BTC, I can just buy BTC. Why would I buy this weird hybrid of business intelligence software company and holding company?