Comment on Meta shareholders overwhelmingly rejected a proposal to explore adding Bitcoin to the company's treasury, with less than 1% voting in favor of the measure

• explodicle@sh.itjust.works ⁨4⁩ ⁨days⁩ ago

  But now they’re essentially just a bitcoin proxy, they even changed the logo to have a bitcoin on it.

  Now that there’s lots of ETFs and stuff, why buy Microstrategy and not just bitcoin?

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  • infinitesunrise@slrpnk.net ⁨4⁩ ⁨days⁩ ago

    Their value-add is that they financialize their bitcoin holdings to grow their bitcoin-backed shares faster than the bitcoin itself. Higher risk than just holding bitcoin or ETFs that just hold bitcoin, but something like 30-40% better returns.

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    • hark@lemmy.world ⁨3⁩ ⁨days⁩ ago

      What does “financialize their bitcoin holdings” mean? Do you mean they use leverage (i.e. debt) to buy bitcoin than they could otherwise? That’s nothing new and is a common ETF strategy (see BITX). And yeah, it also means the bad times hit much harder.

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      • infinitesunrise@slrpnk.net ⁨3⁩ ⁨days⁩ ago

        They issue “convertible notes”, which this coindesk article explains far better than I could because I am not a finance head and honestly do not fully understand them.

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  • finitebanjo@lemmy.world ⁨4⁩ ⁨days⁩ ago

    If you own a share of meta then you own a share of meta and meta owns a mix of assets ranging from physical to various liquidity, whether its USD or BTC there isn’t any difference in this regard.

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