Post
Topic
Board Economics
Merits 4 from 2 users
Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
by
jaysabi
on 16/10/2021, 22:48:38 UTC
⭐ Merited by fillippone (3) ,JayJuanGee (1)

I will concede that my point might come off as quibbling about a minor thing, but there is something specific and special about bitcoin that has lured Saylor into it.. and to cause his company to supplement its focus onto bitcoin, and maybe at some point, the company moves away from other aspects of its business, even though I believe that their software portion does remain quite profitable, but maybe even that part of their business ends up getting more intertwined with bitcoin, since Saylor surely does seem to appreciate the value in attempting to be creative in various ways to incorporate bitcoin into what he and his company is doing.....


Nah, Microstrategy was a dying company before Bitcoin.
And now it's a dying company holding a large chunk of coins.
As far as I know MSTR was a company with no profit, or even results or any type to justify their activity.

Now they are devoting all of their resources to service their bitcoin investment and knowledge, in order to make new commitments to the orange coins. The actual activity hds been degraded to ancillary to this business.


MSTR was profitable but revenues were declining prior to getting into bitcoin.  While it certainly not healthy to have declining revenues for multiple years in a row, I wouldn't categorize them as being so bad that they were "dying."  But they certainly weren't on the up and up, however severely you want to categorize that.

FY         Revenue (thousands)     Net Income (thousands)
2017      504,543                        17,643
2018      497,638                        22,501
2019      486,327                        34,355
2020      480,735                        -7,524

Over the four years prior to bitcoin, revenue dropped just under 5% but was dropping slowly and consistently.  They definitely needed something to make them relevant, and Saylor very keenly recognized bitcoin was it.