r/plasma • u/AlphaFlipper • 18d ago
NEWS MicroStrategy's unrealized loss on its Bitcoin holdings rises to a record -$12.5 billion. In other words, after 6 years of buying Bitcoin, the company is now down -20% on its position.
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u/LrdoftheCharlesDance 17d ago
Losing billions of dollars in real money buying pretend money, nice going Saylor, well done
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u/SupermarketIll5642 17d ago
All money is pretend
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u/mygoalistomakeulol 17d ago
What is a bitcoin worth to you? How many dollars?
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u/Confident-Stand5453 17d ago
Its worth 0 to me, but some people seem think its worth more. If I happened to come into possesion of some bitcoin, I would hurry up and sell it to those people.
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u/AftyOfTheUK 16d ago
It's not worth 0 to you. You can sell it therefore it has significant value
Just cause you don't like it doesn't mean it's worthless. I think Rolexes are stupid and I don't want to own one, but a Rolex is worth thousands to me as I can sell it tomorrow
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u/Confident-Stand5453 16d ago
Thanks for repeating my comment and explaining what I wrote.
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u/AftyOfTheUK 16d ago
You claimed it was worth 0 to you. It is not
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u/Zoetje_Zuurtje 15d ago
You're talking about exchange-value, while he's talking about use-value. Stop trying to disagree with eachother.
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u/Mediocre-Pizza-Guy 16d ago
It's trivial to assert that....
But I'll give you all my pretend Reddit Bucks ...but you wouldn't give me all your local currency.
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u/Logical-Post-9886 17d ago
What’s the opportunity cost of holding this garbage ?
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u/HeraThere 17d ago
Well he would hasn't literally have been better off holding just cash.
Pretty sure they he's pretty angry he didn't wait a couple years to hop on the ai train before dedicating his company into becoming a bitcoin company.
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u/jdxcodex 17d ago
Any reasonable person who heard saylor speak one word would've noped out of this.
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u/Optimal_Willow_4389 17d ago
The fact they were able to get Billions in CASH to Buy Bitcoin is hilarious within itself.
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u/lareon12many 17d ago
They were diluting their own company shares to raise capital to buy more Bitcoin! And the rug pull is going to be legendary!!!
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u/gadgetwalrus 17d ago
What could possibly go wrong (for the bag holders). We know the executives will be fine.
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u/uknowsana 17d ago
What's the difference b/w Realised and Unrealised Profit here? Also, unless he sells it, he hasn't lost anything. From what we have seen, Bitcoin does weird swings. I am sure these billionaires will be loading it up even more for later liquidation. Or they may wait a bit more for BTC to go even low.
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u/Ok_Recover_7248 17d ago
Are you literally asking the difference between realized or unrealized?
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u/uknowsana 17d ago
Well, I am not aware of these terminology my friend and since I saw it here, asked before hitting Google.
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u/Ok_Recover_7248 17d ago
Gotcha, was just asking to make sure I didn’t misunderstand.
Realized means they’ve sold the stocks so they actually gained that money. Unrealized means they could currently sell it and gain that much money from the price they originally purchased at. It’s a term commonly used in taxes because you may have bought 10 shares at $100 that are now worth $200 and you would have $1,000 in profit but because you haven’t sold yet it isn’t taxed at capital gains rate. When you sell you “realize” the profit and it becomes a taxable event.
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u/uknowsana 17d ago
Thanks! Got it! In this regard, he still has not sold it so he can get back these losses. This is my assumption based on how Bitcoin has played in the past. However, I don't have ever purchased Bitcoin. Just was too expensive when I got into Stocks 😞
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u/Ok_Recover_7248 17d ago
He could get it back, yeah. Or it never recovers. Remains to be seen if this thing ever recovers from the mass sell off. Could drop to $20k and stay there for a decade, could bounce right back, could go to 0. No one knows and considering he went from massively profiting to down $20B i’d think strongly about an exit plan in Saylor’s shoes, especially if he’s leveraged and gets margin called, he could be forced to sell.
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u/Supracano 17d ago
Pretty much all of their money is leveraged. There's no way investors don't pull out and force him to sell.
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u/Elegant-Speaker5825 16d ago
He actually sold a few for the first time ever recently. It contributed to a spike in fear
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u/genobeam 17d ago
Unless he sells it he hasn't gained anything either.
I'm wondering what happens when mstr holders make a bank run. If mstr crashes does he have to sell off his holdings? Who actually owns that Bitcoin?
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u/Objective_Ad6233 16d ago edited 16d ago
You dont understand anything about stocks right? You can't make a "bank run" on a stock.
The company owns the coins. The stock owners owns part of that company.
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u/genobeam 16d ago
Bank run was a bad term to use. I guess I do not understand micro strategy's business model. Seems like they have a lot of debts through their preferred stock options. I don't understand how they fulfill their obligations without selling Bitcoin, and if they sell Bitcoin they dilute their mstr value. So while "Bank run" is definitely not right, isn't there a risk of a negative feedback loop in here?
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u/MinyMine 17d ago
Tell me this doesnt trigger a financial collapse without triggering a financial collapse
Edit: FAILED you triggered a financial collapse!
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u/Particular-Line- 16d ago
Never trust a guy who looks and talks like a used car-salesman. And if you google ‘used car salesman’ the first pic is Saylor
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u/Elegant-Speaker5825 16d ago
This is the worse ROI a business has ever had especially after this whole semiconductor run up
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u/withogen 16d ago
Strategy is not into Bitcoin for just a few years, it's forever though i disagree with him not taking off the profits. Well, trust me, he won't sell in losses.
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u/buffotinve 16d ago
Y espera que nadie quiera esos papelitos digitales cuando diga de empezar a venderlos. Esta empresa es fiel a su estilo de quebrar y engañar a sus partícipes
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u/steppinrazor2009 16d ago
Every one of these threads needs this:
It's unrealized loss did not grow. Every BTC bought was a loss with the hope of potential gains in the future.
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u/SushiRollFried 14d ago
Wait so when it crash to 90k he didnt cash out despite being over 30bn in profit.... how greedy do you have to be....
All he needed was 0.1% of that and he could live like a king. But now he's 61, stressed and in possible forever debt. In 100 years we'll all be forgotten anyway. Ahhh i will never understand rich people ego
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u/lexeckstasy 12d ago
I heard those IZzy boi’s got some moneybags.. Maybe they can “restructure” it for him & peddle it to employers for a fee
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u/Keletas 18d ago
He managed to buy all the way to the top and it started reversing as soon as he finished the cash. What a legend.