You can check that Bitcoin is real without asking a bank to vouch for it.
The company that hired him was standing on fake collateral.
A letter of credit is a bank vouching you're good for the money, for a fee. That bank did not exist. The paper stood behind $4 billion of risk.
A viewer asked when $MSTR goes back to its peak price.
@PunterJeff does not give a date. However a scenario.
If 1 million Bitcoin ever sits on that balance sheet at $500,000 a coin, that's $500 billion, and the portion at risk is small next to what banks and Berkshire carry.
Strategy came out of a 50% Bitcoin drawdown with net leverage at zero.
The bear case said a bear market would force them to sell all their Bitcoin.
@GrainofSaltSF cash chart shows what happened instead:
$8.1 billion in cash acquired through the drawdown
$1.4 billion used to
About $1 trillion of the federal deficit is interest on debt that already exists.
Deficit: ~ $1.9 trillion
Interest expense: ~ $1 trillion
Deficit Compounding: 13% a year
Why: existing debt refinances with rates at a 10y high.
@GrainofSaltSF "It works like an interest only
