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Demystifying #Microstrategy and the #bitcoin 
bubble.Let’s face it. None of us heard of Micheal Saylor & Microstrategy before their purchase of bitcoin in August 2020.
Most of us didn’t even care. We suddenly hear about them purchasing #bitcoin
.A thread
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The sudden surge of institutional investors and big corporations after #bitcoin rallying over 400% from its march crash came as a pleasant surprise for the small crypto market.
Big money finally flowing into bitcoin might be the most misleading narrative pushed so far.
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rallying over 400% from its march crash came as a pleasant surprise for the small crypto market. Big money finally flowing into bitcoin might be the most misleading narrative pushed so far.
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$MSTR stocks plummeted more than 90% since its inception and after failing to deliver on their promises for investors, & honestly failing to innovate in the market.
Unlike what most think, they’re not a hedge fund. They’re a software & BI company. A not-so-good one too.
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![$MSTR stocks plummeted more than 90% since its inception and after failing to deliver on their promises for investors, & honestly failing to innovate in the market.Unlike what most think, they’re not a hedge fund. They’re a software & BI company. A not-so-good one too.[3/13]](https://pbs.twimg.com/media/EotBZM7XYAIq5iD.png "$MSTR stocks plummeted more than 90% since its inception and after failing to deliver on their promises for investors, & honestly failing to innovate in the market.Unlike what most think, they’re not a hedge fund. They’re a software & BI company. A not-so-good one too.[3/13]")
Unlike what most think, they’re not a hedge fund. They’re a software & BI company. A not-so-good one too.
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In July 2017, the company reported a 41% year-over-year drop in both net income and earnings per share (EPS), resulting in its stock crash by 30%.
To quote:
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![In July 2017, the company reported a 41% year-over-year drop in both net income and earnings per share (EPS), resulting in its stock crash by 30%.To quote:[4/13]](https://pbs.twimg.com/media/EotBfLHXEAAQXuS.jpg "In July 2017, the company reported a 41% year-over-year drop in both net income and earnings per share (EPS), resulting in its stock crash by 30%.To quote:[4/13]")
To quote:
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Figures don’t lie. Enter #Bitcoin :
In August 2020, Saylor announced the purchase of $250 million in bitcoin $250 million followed by an additional $175 million worth of BTC one month later.
Hello, bubble!
For reference:
https://twitter.com/michael_saylor/status/413478389329428480
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:In August 2020, Saylor announced the purchase of $250 million in bitcoin $250 million followed by an additional $175 million worth of BTC one month later.
Hello, bubble!
For reference:
https://twitter.com/michael_saylor/status/413478389329428480
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Hype pushes the stock price up. Think of it as your standard pump and dump scheme, albeit more sophisticated.
$MSTR stock rose by more than 30% and still pushing.
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![Hype pushes the stock price up. Think of it as your standard pump and dump scheme, albeit more sophisticated. $MSTR stock rose by more than 30% and still pushing.[6/13]](https://pbs.twimg.com/media/EotCAbUXIAA8iUc.png "Hype pushes the stock price up. Think of it as your standard pump and dump scheme, albeit more sophisticated. $MSTR stock rose by more than 30% and still pushing.[6/13]")
$MSTR stock rose by more than 30% and still pushing.
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Keep in mind that Microstrategy has seen falling revenues for more than a decade.
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![Keep in mind that Microstrategy has seen falling revenues for more than a decade.[7/13]](https://pbs.twimg.com/media/EotCOkAXUAA6Gm8.png "Keep in mind that Microstrategy has seen falling revenues for more than a decade.[7/13]")
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Its PE ratio skyrocketed in December to more than a whopping 96 (Microsoft is at 38). The average P/E for the S&P 500 has historically ranged from 13 to 15.
The high multiple indicates that investors expect higher growth from the company compared to the overall market.
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![Its PE ratio skyrocketed in December to more than a whopping 96 (Microsoft is at 38). The average P/E for the S&P 500 has historically ranged from 13 to 15. The high multiple indicates that investors expect higher growth from the company compared to the overall market.[8/13]](https://pbs.twimg.com/media/EotCkBmW4AAhqSe.jpg "Its PE ratio skyrocketed in December to more than a whopping 96 (Microsoft is at 38). The average P/E for the S&P 500 has historically ranged from 13 to 15. The high multiple indicates that investors expect higher growth from the company compared to the overall market.[8/13]")
The high multiple indicates that investors expect higher growth from the company compared to the overall market.
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A company with a current P/E of 25, above the S&P average, trades at 25 times earnings.
Fine. So what does this all mean? Well for starters that Microstrategy suddenly became over-valued, especially when it comes to its revenue. Its investors are temporarily happy.
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Fine. So what does this all mean? Well for starters that Microstrategy suddenly became over-valued, especially when it comes to its revenue. Its investors are temporarily happy.
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In other words, it’s a bubble waiting to pop. Don’t believe me?
https://twitter.com/michael_saylor/status/1334958046355841034
Trillions huh? The entire Gold market is around 9T. Talk about CLOUT.
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https://twitter.com/michael_saylor/status/1334958046355841034
Trillions huh? The entire Gold market is around 9T. Talk about CLOUT.
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BONUS: The average price purchased is 19.4K. Smart? Not so fast. Even big guys with a lot of money make mistakes. Not to mention that Saylor and his pals were accused of fraud in 2000. Talk about history.
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So why the shilling? Easy.
1- Most of the influencers you see here are bag holders, a few purchased bitcoin in the lows, and most at the 14K range. You can piece up the rest of the equation yourself.
2- Clout
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1- Most of the influencers you see here are bag holders, a few purchased bitcoin in the lows, and most at the 14K range. You can piece up the rest of the equation yourself.
2- Clout
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I honestly expected better from CT, especially that some here presumably hold CFA certificates and probably work in the investment sector.
Hope you enjoyed this thread! I WILL pull it in the future for reference :)
#btc
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Hope you enjoyed this thread! I WILL pull it in the future for reference :)
#btc
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