MSTR 31x ing Down on BTC (Patreon)

MSTR just filed a preliminary notice with the SEC for a shareholder vote On the agenda includes the following

Increase authorized shares of common stock from 330 million to 10.33 billion - a 31.3x increase. Also increase authorized preferred shares from 5 million to 1.005 billion

First of all, never in my life have I seen such a Capital Market game play out - ever!!!

If things remain equal - he can raise far more money than the Bitcoin available to be purchased. This is Game Theory in action. Absolute Scarcity vs Infinite ATM Money!

If he does this, he throws down the gauntlet for others to follow.

Michael Saylor's approach to buying Bitcoin can be broken down into simple ideas

Game Theory of Getting in Early:

• When you act before others in a game, you gain an advantage.

• He has nearly 500K so the more he pumps price the better off he is.

More Purchases Higher Price :

• By buying Bitcoin, Saylor helps drive up the price which makes it even more valuable.

Limited Supply, Rising Prices:

• Bitcoin has a fixed supply of 21 million coins. I reckon 5M are lost. Only commodity with finite scarcity. FIAT will go to zero over time.

Will Everyone Want a Piece if he buys a lot?

• If enough people believe Bitcoin will be valuable, they’ll want to buy it to avoid missing out.

• Saylor’s big purchases and public support signal confidence, which could lead to more buying and higher prices—a cycle that feeds itself.

I am working on some numbers to try simulate waht this issuance alone would drive. Even 10% of this plan would buy 335BN would drive price to at least $564K

More on this later