That tweet aged poorly

Another correct prediction: MicroStrategy (MSTR) has officially given up all its BTC gains:

The reason why MSTR is lower despite Bitcoin still being at $29k is because from 2020-2022 Saylor took on billions of debt to buy Bitcoin at an average price of $32k, so he’s underwater by 10% as of writing this. But it’s much worse: due to high interest rates, high inflation, and loss of confidence in Bitcoin, to renew his debts he’ll need to sell bonds at much less favorable rates, which means more losses. Bitcoin going to $20k will probably render the stock close to worthless and he’ll be forced to sell his bitcoin at a fire sale. This will cover the debt at the cost of shareholder equity.

People are realizing what I knew all along: crypto sucks. Here is Cernovich doing an about-face:

As someone in the comments observes, Cernovich was shilling crypto as recently as Feb. 2022:

“Smartest people in the world.” They said the same about Enron executives in 2001 too. People who read my blog would not have made that mistake. Yes, 3x funds have fallen a lot, but those will recover before BTC does.

Leave a comment

Your email address will not be published.