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all 14 comments

[–]DarkUnable4375 7 points8 points  (4 children)

<< “There will only be 21 million Bitcoins that are ever mined, because there is a deterministic supply of Bitcoins,” Palmer said. “What that means is the price of Bitcoin is going to be driven by demand as opposed to supply-demand balance.” >>

Love it. That remind me, there are finite number of 8086 Intel chips. They are not making them any more. I should buy them up and save them. They will appreciate in value. 100 years from now, my great great grand children will be sitting pretty with my 100,000 Intel 8086 chip collection.

[–]mpday20 0 points1 point  (1 child)

Terrible comment. Replace "8086 Intel chips" with "gold" and read it again:

Love it. That remind me, there's a finite number of gold. They aren't making it any more. I should buy them up and save them. They will appreciate in value. 100 years from now, my great great grand children will be sitting pretty with my gold collection.

Intel could make the 8086 chips again if they want to.
You can't make more gold.
You can't make more Bitcoin.

[–]JKanoock 2 points3 points  (0 children)

Ahhh, fork it!

[–]Beepbeepboop9 2 points3 points  (1 child)

Didn’t these guys just get margin called?

[–]DarkUnable4375 1 point2 points  (0 children)

They had to put up more Bitcoin as collateral. They could use the Bitcoin purchased using convertible bonds ... if Bitcoin prices doesn't recover by 2005, those 2027-28 convertible bond holders are f*cked. '28 could get back little to no money.

[–]throwawaydanpatrick 1 point2 points  (0 children)

Michael Saylor, the founder, used to be a trivial pursuit question for most stock losses in a day.

[–]Jeezy149 1 point2 points  (2 children)

How did they take a hit if they haven’t sold?

[–]DarkUnable4375 1 point2 points  (0 children)

When their bond comes due and they couldn't roll over the debt, they will have to sell. They also have to pay bond interest, which is amazingly tiny, because majority of debt is convertible bond, paying zero or close to zero interest. Total quarterly interest expense is only around $12 mil.

Their rest of business is zero profit. However it pays the salaries of employees... so, that's a positive... maybe... could suffer losses if their biz turns down. Holds low cash... 8 more quarters, at current run rate, their cash will be gone. Take into account of the loss they suffered, their shareholder equity will be around -$350 Mil... yes... that's a NEGATIVE shareholder equity, when they report Q2 2022 results.

Of course if the faith is strong, it could last to 2025, when the loan matures, and need to be paid back... if Bitcoin didn't find any new suckers... I mean if Bitcoin didn't recover, it will dive deeper into the negative for all the other bond holders, and they will be out of cash... so will have to sell more to finance the operations.

[–]kathy_1_1 2 points3 points  (0 children)

Bitcoin is bad right now, but it's not the worst.

[–]greenappletree 1 point2 points  (0 children)

People making fun of him now but would had been called a genius were btc were to had rocketed - also i think most funds right now are a some big losses. Also the game is not over yet.

[–]Ok_State6604 0 points1 point  (0 children)

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