The MicroStrategy #bitcoin playbook works for companies with steady, recurring cashflows. SaaS works. Oil and gas E&P works. Logistics works.
Bitcoin mining? Not so much. Cashflows are too volatile to cover the debt obligations.
I’m skeptical of MARA’s recent announcement. Makes me think they’re working to offset some short term liquidity issues. Also, they’ll use the added liquidity (if they can secure it) to ride this next bitcoin bull run and likely enter into a different business (i.e. energy).
But the MicroStrategy playbook works because MicroStrategy can DCA and smash buy without reliance on bitcoin price for their cashflows. This won’t end well for MARA without some major adjustments to their business model.
brock / Brock Wilson
npub1dl…234z9
2024-08-13 01:20:32
Author Public Key
npub1dl3snacnxj9qu5a5llsch0qld4vrvv2s0pv5wh0ntsq80ndz304ql234z9Published at
2024-08-13 01:20:32Event JSON
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"content": "The MicroStrategy #bitcoin playbook works for companies with steady, recurring cashflows. SaaS works. Oil and gas E\u0026P works. Logistics works. \n\nBitcoin mining? Not so much. Cashflows are too volatile to cover the debt obligations.\n\nI’m skeptical of MARA’s recent announcement. Makes me think they’re working to offset some short term liquidity issues. Also, they’ll use the added liquidity (if they can secure it) to ride this next bitcoin bull run and likely enter into a different business (i.e. energy).\n\nBut the MicroStrategy playbook works because MicroStrategy can DCA and smash buy without reliance on bitcoin price for their cashflows. This won’t end well for MARA without some major adjustments to their business model.",
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}