Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Personal Finance / Macroeconomic Trends & Risks
Unthreaded | Threaded | Whole Thread (5) |
Author: sykesix ✭  😊 😞
Number: of 4582 
Subject: Re: "Crypto-Treasury" deals
Date: 09/27/25 3:45 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 8
I just can't understand why investors would invest in (or lend money to) a company that would invest in crypto currencies. If they wanted crypto, why not simply buy it for themselves and save the skim?

Great question. The short answer is blind greed. The long answer is these companies issue debt in order to buy crypto. So by buying shares in these companies, you are leveraging your crypto investment. Strategy (MSTR) started acquiring Bitcoin while back. As Bitcoin's price started its runup, this caused a spike in the stock price as speculators jumped in on the action. Last year MSTR's stock increased by 573%, which was by far greater than any company in the S&P 500, walloping paltry gainers like NVDA and PLTR (MSTR is not in the S&P 500). Lots of companies are eager to get in on that action and have started using leverage to by crypto themselves. In theory, companies can continue to issue debt forever to buy more and more crypto as long the price of crypto keeps increasing. I think we can all see the problem with that.

There is one more catch too. MSTR is nominally a software company, but they don't make any money on that end of the business. It is all Bitcoin speculation. Perplexity tells me MSTR owns $73.9 billion of Bitcoin and has a market cap of about $89 billion. Which is to say one dollar of MSTR buys you less than one dollar of Bitcoin.

I don't know how this ends, but it doesn't end well.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to sykesix here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 4,576 posts about Macroeconomic Trends & Risks. The article-length ones it recommended most:
AI Tarpits · 36 recs · 2026
End of an era - profit slowdown · 36 recs · 2023
Control Panel: Trend changes in 2026 · 34 recs · 2026
From the Oregon Bay Area (a blogger) · 33 recs · 2025
Lerner Symmetry Theorem · 32 recs · 2025
Unthreaded | Threaded | Whole Thread (5) |


Announcements
Macroeconomic Trends & Risks FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of Macro | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community