#MicroStrategy's “bitcoin strategy” is going fully pyramidal. The company has spent $33 billion on bitcoins now “worth” roughly $41 billion over the past 5 years (at least $7-8 billion of those bought with borrowed money). Now #MichaelSaylor just announced a $21 billion sale of their special new #STRK perpetual strike “stock” (different from the regular stock, which is #MSTR) to buy even more bitcoin. Note that the market cap of MicroStrategy is ~$60 billion, so that's a sale of 1/3rd (sort of - STRK isn't exactly a share of stock).

Paraphrasing Dan Davies
here, something along the lines of “the nature of fraud is to expand until stopped by an external force”…

#fraud #stockmarket #economics #economy

California State Teachers Retirement System (#CalSTRS) has started investing in bitcoin (via #MicroStrategy, so they’re paying roughly double the market rate).

What could go wrong?

theblock.co/post/341230/calstr…

#MSTR #MichaelSaylor #California #Bitcoin #Pensions

the irony here is that in order to get into the S&P 500 and thus be exposed to trillions of dollars in passive investing ETFs etc (which is Michael Saylor's goal) #MicroStrategy needs to show positive revenue for some period (i think a year? don't quote me). In order to show positive revenue #MSTR needs to be allowed to recognize their bitcoin gain. Recognized gains get taxed... but if MSTR has to pay taxes on those gains they will have to sell bitcoins which will tank the price of both #bitcoin and #MSTR.

Shining example of why a bailout with taxpayer money is really the only way out for the #crypto industry... good thing they have a compliant and friendly administration that's already making plans to do just that.

x.com/profplum99/status/188282…

#cryptocurrency #finance #economics #ponzischeme #michaelSaylor

the giant pot of bitcoins bought with leverage and the money of retail suckers that masquerades as a company known as #MicroStrategy (#MSTR) has a massive tax problem and has run to the IRS for help. They teamed up with #Coinbase and wrote a 76 page Very Angry Letter about how they cannot possibly be expected to follow the tax code as written.

(tl;dr the value of their bitcoins went up and they don't want to pay taxes on them despite taking an absolutely *massive* tax impairment a year or two ago when their bitcoins had gone down)

For bonus points consider that the CEO of MicroStrategy #MichaelSaylor was personally busted for massive tax fraud and had to pay a $51 million fine just a few months ago.

* WSJ: wsj.com/finance/currencies/mic…
* no paywall: archive.ph/U4LQC
* 76 page letter: legacy.www.documentcloud.org/d…

#IRS #taxes #crypto #cryptocurrency #MichaelSaylor #uspol #taxcode #tax #finance #economics #stockmarket #bitcoin #btc #corruption