What Bitcoin Did

WILL MICROSTRATEGY BECOME THE BIGGEST COMPANY IN THE WORLD? w/ Jeff Walton

15 snips
Jan 31, 2025
In this engaging discussion, Jeff Walton, a financial analyst and former reinsurance broker, dives into MicroStrategy's ambitious Bitcoin strategy and its potential to dominate the corporate landscape. He highlights the implications of new accounting standards on the company's market value and investor perceptions. The conversation also explores the risks of leveraging and the possibility of MicroStrategy transforming into the world's most valuable company, drawing parallels to the GameStop phenomenon while analyzing the future of corporate Bitcoin adoption.
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INSIGHT

MSTR vs. Bitcoin

  • MicroStrategy's Bitcoin holdings are fundamentally different from traditional assets, impacting valuation.
  • The market currently questions the premium on MSTR compared to just holding Bitcoin directly.
INSIGHT

Fair Value Accounting Impact

  • The shift to fair value accounting in 2025 will allow MSTR to recognize Bitcoin gains as earnings.
  • This change will improve MSTR's optics, potentially attracting more investors and indexing opportunities.
INSIGHT

ATM Equity Issuance

  • MSTR's ATM equity issuance allows them to buy more Bitcoin by selling shares at a premium.
  • This increases Bitcoin per share, effectively capturing the spread and de-leveraging the balance sheet.
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