Crypto飞哥
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I have always felt that the biggest hidden danger in the cryptocurrency space might be MicroStrategy.
The way MicroStrategy buys Bitcoin really confuses me. Heavily investing at the peak of a bull market and starting to sell at the low point of a bear market — buying high in 2021 and starting to sell when the market was sluggish at the end of 2022 — it looks like they might be short on cash. Although they sold and then bought back later, the boss may be a 'true believer' in Bitcoin, but he completely disregards the cycles and does not leave himself any cash flow; this is not investing, this is gambling.
Look at Buffett; he always keeps ample cash to cope with extreme situations. In this regard, MicroStrategy falls far short. If they had hired an analyst to operate, buying less at high points and more at low points, their current holdings would probably have multiplied several times. Now, after five years of buying, the average cost is $68,000, and if Bitcoin has a major correction, all those five years of effort could go down the drain.
Currently, MicroStrategy still holds more than 550,000 BTC. With such a large stake, if they truly run into cash flow issues and need to liquidate, it could directly crash the market's bottom line, which would be a disaster for the entire cryptocurrency space. Don't think that any institution is immune; back in the day, FTX was thriving, and Three Arrows Capital was incredibly powerful, yet they both collapsed in the bear market. The market is ruthless and unforgiving; there is nothing too big to fail.
The way MicroStrategy buys Bitcoin really confuses me. Heavily investing at the peak of a bull market and starting to sell at the low point of a bear market — buying high in 2021 and starting to sell when the market was sluggish at the end of 2022 — it looks like they might be short on cash. Although they sold and then bought back later, the boss may be a 'true believer' in Bitcoin, but he completely disregards the cycles and does not leave himself any cash flow; this is not investing, this is gambling.
Look at Buffett; he always keeps ample cash to cope with extreme situations. In this regard, MicroStrategy falls far short. If they had hired an analyst to operate, buying less at high points and more at low points, their current holdings would probably have multiplied several times. Now, after five years of buying, the average cost is $68,000, and if Bitcoin has a major correction, all those five years of effort could go down the drain.
Currently, MicroStrategy still holds more than 550,000 BTC. With such a large stake, if they truly run into cash flow issues and need to liquidate, it could directly crash the market's bottom line, which would be a disaster for the entire cryptocurrency space. Don't think that any institution is immune; back in the day, FTX was thriving, and Three Arrows Capital was incredibly powerful, yet they both collapsed in the bear market. The market is ruthless and unforgiving; there is nothing too big to fail.
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