Bitcoin, Blockchain, Battlestar Galactica

That post was from March 2024. Sun has constantly denied it, but now there's a court case going on which proves it happened - that about half a billion (real) dollars went missing from Sun's accounts.

https://www.gtreview.com/news/globa...ycoon-sun-over-us456mn-stablecoin-investment/

The problem in the crypto world is that you have infinite tools to smoke and mirror your way out of trouble if you are big enough.

 

So management is going to liquidate its bitcoins, right? Otherwise, it’s a blatant failure to maximize stockholder returns.

 

They have no regard for shareholders. They keep issuing new stock to pay for the dividends and buy more Bitcoin, so shareholders hold less and less of the company.

 

Isn’t that illegal?

 

Why do you hate America, dave?

 

I’m sure it would be really hard to prove beyond a reasonable doubt, but I’m pretty sure the law says they have a fiduciary responsibility to the shareholders. Having “no regard” for shareholders by definition means not fulfilling their fiduciary responsibility.

 

His position is that he is doing what they want by hoarding more and more Bitcoin at the expense of everything else. He has to be sued by the shareholders and they haven't despite the stock taking a hammering this year in a bull market.

Besides, crypto crime is legal now.

 

I'm not sure who we're talking about but, strictly speaking, if a shareholder or group of shareholders has more than 50% of the stock they don't need to sue anyone. They can simply vote to replace the board.

It rarely, if ever, happens, though.

 

And this is after Microstrategy bought a whole bunch last week at $104,000.

Microstrategy's purpose is propping up the price, and them going down means bad news for Bitcoin.

 

Controlling interest in Microstrategy is owned by Saylor LLC, which is 100% controlled by Michael Saylor. So the shareholder Michael Saylor is required to benefit most is Michael Saylor.

 

Bitcoin is under $90,000, which given its wild swings isn't any sort of catastrophe. Except for retail-level people that trade it, because they invariably use leverage. One popular site is called Hyperliquid, which is automated and no decisions are made by people. You can leverage at insane levels - like 20x. With drops like we saw, lots of people lose everything - hyperliquidated as it were.

And to make everyone here feel good, one person that lost his entire position of $727,000 is Andrew Tate.

https://finance.yahoo.com/news/andrew-tate-gets-hyperliquidated-bitcoin-140100730.html

 

I would have gone with Adam Driver’s MORE!!!!

 

So this Saylor guy then

 

According to Bloomberg, there is currently a discussion on whether Microstrategy should be dropped from major benchmarks such as the MSCI USA and Nasdaq 100. They want to get rid of all digital asset treasury firms, which Microstrategy is despite a money losing software rump. If they do it means lots of institutional investors will be getting out.

This is important because the 'infinite money glitch' that sent Microstrategy and Bitcoin up works in the opposite way on the way down. To pay off dividends and debt they have to sell Bitcoin which lowers Bitcoin's price which lowers the value of Microstrategy which means they can't issue more stock which means they have to sell Bitcoin and the spiral starts.

 

All I got.

 

Microstrategy's more about the near future. What's going on now is more a Wall Street phenomenon, and like all Wall Street phenomenon it's not easy to explain why. But money is definitely moving out of Bitcoin ETFs. It's possibly a response to dimming prospects of easy money in the future. Or maybe bad news from the Bitcoin miners, who are in trouble now except for the ones shifting to being AI datacenters.

 

Another thing to add is the end of the Japan carry trade, which is another source of cheap money used for speculation.

 

There has been concern the last month that Microstrategy didn't have the money to pay dividends and interest on their convertible bonds so they sold a bunch of common stock to raise $1.5 billion to build a buffer.

https://beincrypto.com/microstrategy-bitcoin-fears-usd-reserve-us-crypto-news/

What's the name of a kind of financial organization that sells more shares to pay the interest on earlier buyers of shares? I forget.

 

Close enough.....