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Scraped on 30/04/2025, 09:11:13 UTC
A competitor for Strategy after all  Grin
Interesting to see Tether, which was always quoted as the next to fall, being a giant and extremely profitable company
Tether was always quoted as the next to fall because Tether is a privately owned company, their audits are questionable and there is a big chance that USDT isn't as backed as they claim. To say on the other hand, 1 USDT is not 1 USD and if there is a sudden spike in demand, tether might be the next to fall but it doesn't mean that thether isn't profitable or can't be profitable and to be honest, this decision of theirs is very wise and beneficial for strengthening the company.

Comparing leverage on ETF to be able to borrow billions of dollars at 0% with no margin call is like comparing an elephant to a mosquito.
What is exactly the advantage for the investor? These billions are only invested in BTC.

The fact that there is no margin call, no risk of liquidation (or if you prefer a risk so low that is extremely unlikely, especially compared to a leveraged position in an ETF, that can be margin called).
Didn't MicrostrategyMicroStrategy face a liquidation risk in 2022 when Bitcoin sharply fall? It was very close to liquidation if I remember correctly but I might be wrong because I didn't pay too much attention to this fact.
Original archived Re: 21 Capital: A Bitcoin Native Company
Scraped on 30/04/2025, 09:06:06 UTC
A competitor for Strategy after all  Grin
Interesting to see Tether, which was always quoted as the next to fall, being a giant and extremely profitable company
Tether was always quoted as the next to fall because Tether is a privately owned company, their audits are questionable and there is a big chance that USDT isn't as backed as they claim. To say on the other hand, 1 USDT is not 1 USD and if there is a sudden spike in demand, tether might be the next to fall but it doesn't mean that thether isn't profitable or can't be profitable and to be honest, this decision of theirs is very wise and beneficial for strengthening the company.

Comparing leverage on ETF to be able to borrow billions of dollars at 0% with no margin call is like comparing an elephant to a mosquito.
What is exactly the advantage for the investor? These billions are only invested in BTC.

The fact that there is no margin call, no risk of liquidation (or if you prefer a risk so low that is extremely unlikely, especially compared to a leveraged position in an ETF, that can be margin called).
Didn't Microstrategy face a liquidation risk in 2022 when Bitcoin sharply fall? It was very close to liquidation if I remember correctly but I might be wrong because I didn't pay too much attention to this fact.