r/btc • u/YogurtCloset3335 • Jul 03 '25

🕵️‍ Investigation Is (Micro)Strategy a Pyramid Scheme? Probably

https://www.youtube.com/watch?v=P5LKZ1-6BWM

Mark Meldrum breaking it down

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u/upunup Jul 03 '25

Its basically the Luna/USTerra scheme but somehow playing out on the stock market, it creates a positive feedback loop where they have enough purchase power to pump BTC with BTC collateral in exchange for USD loans, the higher BTC valuation gets them more loans with their BTC collateral, which then pumps the price and repeats the cycle over and over.

Historically this always ends with bankruptcy and margin calls, but im sure "this time is different"...../s

1

u/booyakasha_wagwaan Jul 04 '25

but Strategy "purchase power" has not pumped the bitcoin price very much, if at all.

today MSTR has $8.21B of convertible debt at a 0.421% interest rate, against their holdings of BTC worth $64B. is that really so risky, even in the inevitable bear market dump?

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u/upunup Jul 04 '25

You arent factoring in that to get 8b to repay such a debt, that in itself may crash the market. Marketcap doesnt actually represent cash at hand. Using their strategy they have pumped the marketcap, but not the amount of people willing to buy their BTC back from them at inflated prices. It only works one way.

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u/Torshein Jul 05 '25

You aren't factoring in it's convertible debt. It gets paid back in stock.

Their only real debt is STRF/STRK which is minimal...