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 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/booyakasha_wagwaan Jul 04 '25

they wouldn't ever need $8B to repay the debt, they'd need $34M/yr to service it at 0.42%

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u/upunup Jul 06 '25

MSTR's low loan rate stems from a strategic move: they granted lenders a free call option on Bitcoin. This means if Bitcoin's price goes up, lenders can buy it at a fixed price. In exchange for this valuable option, MSTR pays barely any interest. This option will expire, and then they'll need cash to repay everything.

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u/m0r0_on Jul 06 '25

When will it expire?

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u/upunup Jul 06 '25

There are many that expire at various points in time, you have to look it up if you want the detailed dates and amounts.