Almost no other company owns more Bitcoin than MicroStrategy, and while some analyses indicate that the company has made profits of no more than 40%, the company's CEO once stated that the profit rates in the Bitcoin price have reached more than 72%.
Look at the beginning of this thread - August 2020. MicroStrategy was a company that was around $500 million valuation.. or maybe $1 Billion at most. Now it is valuated at more than $70 billion, and it is also one of the highest traded and talked about companies. Sure, there are people who have no clues about MSTR is, and there are also people who think that MSTR is highly in debt, but they hardly have no clue about how MSTR is ongoingly folding value into the company by buying and figuring out many creative ways to leverage buy BTC within terms that are extremely profitable (terms that no person could get, which also causes MSTR to be a good thing to buy, not that I have any myself, but I don't feel like I want or need MSTR, since I have bitcoin, which I personally consider to be good enough for me and my own situation).
I have two questions: How much tax should the company pay each year or is the surplus value that the company benefits from not declared? And are the announced numbers after or before tax deductions?
Also about the value of profits because the company has to sell part of its shares to buy Bitcoin. 5% of the company's shares are currently owned by BlackRock. Is the company considered to have adopted a smart plan if it has to sell part of it every time?
I don't know the answers to the first three of these four questions that you label as two questions, except maybe the last question I might have some ideas.
I think that MSTR's plan is quite smart because they have increasingly bought bitcoin on a regular basis since 2020 and they have learned more and more ways to be creative in using debt and/or other financial instruments to buy more and more BTC, and they structured such debt and/or financial instruments in very attractive ways that both allow some companies to get BTC price exposure, but they get BTC price exposure that is quite profitable to them in ways that they would not be able to do with some of the traditional asset classes, such as corporate (convertible) bonds.
MSTR has employed a variety of strategies to raise money, and the level of MSTR's aggressiveness in the employment of creative ways to buy BTC without even incurring as much debt as it may seem since the debt it going towards the purchase of a pristine asset (namely bitcoin), and such strategy has also caused them to be far away that leader in the field of leverage buying bitcoin, so they are likely the main trusted, credible and even very liquid place that most BIG players would go if they want to get some bitcoin price exposure, whether they choose a small part of their portfolio to be allocated into various MSTR related products, such as a 1% allocation to MSTR/bitcoin exposure, or perhaps some higher levels of aggressiveness exposures in the 10% to 25% territories. None of that is necessarily unreasonable.
It appears that in 2022 (
article might be outdated) the world's corporate bond market was $133 trillion and the USA portion of that $51 trillion, and surely it may be larger now, and Saylor has a pretty large addressable market to the extent that his corporate bonds are outperforming most if not all of the other corporate bonds.