Master Chats Hot Topics:
First, let’s talk about MicroStrategy, which spent $4.6 billion in the past week to acquire 51,780 bitcoins, at an average price of $88,627. The amount of bitcoins purchased exceeded the total inflow of all ETFs in November, which was $3.5 billion. One company is taking on the entire NASDAQ and NYSE, it’s simply astonishing!
Why is Master mentioning this news first today? Everyone will understand after reading. First of all, this company truly defines what it means to be extravagant with ‘buy buy buy’! Relying on issuing bonds and increasing stock offerings, they keep buying bitcoins, making it seem like bitcoin is the only future in this world.
While other companies earn dollars, they directly aim at ‘accumulating bitcoins’, even creating a ‘Bitcoin Yield’ to assess how much they’ve bought and how efficient they are.
What is Bitcoin Yield? Simply put, it’s to see how many bitcoins they’ve purchased, how many shares have been diluted, treating bitcoins as performance metrics. Other companies calculate EPS (earnings per share), while they calculate ‘growth in bitcoins per share’, and then it turns out that they can compare their price-to-earnings ratio with Apple and Tesla, or even surpass them.
The key is this company really dares to gamble, using low-interest long-term debt instruments to raise money from the traditional bond market to buy bitcoins. Bond investors are also raising the stakes, knowing that buying bitcoins directly through ETFs is easier, yet they prefer to buy MicroStrategy's bonds, possibly attracted by this new play.
What’s even more intriguing is that this company has budgeted for a scenario: if bitcoin rises by 10%, its stock price could rise by 55%, while the price-to-earnings ratio remains unchanged. Isn’t that frustrating? So the answer emerges: MicroStrategy is not playing with bitcoins, but rather leveraging faith.
It’s like a bitcoin trust, and in the future, its valuation will depend on three major factors: high bitcoin yield, rising bitcoin prices, and the unique premium capability of the financing market. The market should not only see MicroStrategy as a bitcoin trust but also recognize its special value in the bitcoin ecosystem.
