So what happens with Crypto hoarding companies like MSTR and likes when this happens? Their movements bear greatly exaggerated correlation to the prices of the cryptos they are proxy of.
Bitcoin price at risk of a crash to $75 as a major BoJ risk looms
To be clear, Nasdaq-100 is NOT S&P100. These are very different indexes and not of equal standing. S&P100 is more restrictive and carries more importance to financial institutions. Please read re-produced article below:- MSTR (MicroStrategy, now called “Strategy” in some reports) is not currently a member of the S&P 100. Here’s the situation: 📌 S&P 100 vs. S&P 500 • The S&P 100 is a subset of the S&P 500, consisting of 100 large, established U.S. companies selected for size, liquidity, and industry representation.  • To be in the S&P 100, a company must first be included in the S&P 500 (it’s essentially the top tier of the S&P 500). Because MSTR is not in the S&P 500, it cannot be in the S&P 100 either. 📌 Current Index Membership for M
Bitcoin hoarder company Strategy remains in Nasdaq 100
Okay. So another car company which is saying it is not a car company. I remember back in 1999, the not-so-secret formula in driving up share value is to annoumce any new venture that ends with ".com". AI may be the biggest tulip burst ever.
Rivian Stock Soars 13% After Unveiling Its Own in-House RAP1 AI Chip
I have to agree with Scaramucci. Michael Saylor is indeed very smart. You have to be to be able to sucker so many into a company which produces almost nothing and has very little acutal revenue. He raise funds by issuing new stocks and debts and uses most of it to pay dividends to holders of earlier stocks and notes. How is this not a ponzi scheme.
Anthony Scaramucci Says He's Found The 'Smartest Person' In Crypto
Strategy (MSTR) is not listed in the S&P 100 index, and its exclusion from the S&P 500 highlights the challenges it faces in meeting broader market index criteria due to its unique asset composition.
Analysts Flag Risks for Strategy at Nasdaq's 100 Index Reshuffle
Strategy (MSTR) is not listed in the S&P 100 index, and its exclusion from the S&P 500 highlights the challenges it faces in meeting broader market index criteria due to its unique asset composition.
This is exactly it. ".....it like a shark, and if he stops swimming, he dies," Michael Saylor will drown if Bitcoin suddenly finds no buyers and the price collapses. This is a very dangerous end-game. And with it's (Strategy) dividend obligation of USD800 million per year, with no meaningful cash flow from it's computing business, the musical chair game for Bitcoin must never stop.
This market has become very complexed. Unlike the past where a story like Tulips, or South Sea trades, was enough, these days you need many different tomes to keep the interest hot. So, AMD's and NVIDIA's are still highly valued, new storied have to be invented to keep the masses going. So AI, Cryptocurrency, Quantum Computing, Robots. Many stories to spin now. Before the biggies decide to take their table off the table. Once again.
MSTR warning. Pay heed and protect yourself. Also look up The Tulip Craze of the 1630's and the South Sea Fraud of the 1700's. It is very alarmingly similar to what we are seeing today. Not just with Cryptocurrencies but also all shouts of AI, Robots and Quantum Computing. Not that these ideas will never work but that they will likely deliver a worthy value for a long time. Just like the South Sea Co made the promise that the company had exclusive trading rights between England and South America. Even though, back then, Spain controlled South America and England was at war with Spain.
History repeating right before your very eyes. Tulip Craze of 1620's, The South Sea Bubble of the 1700's, The Dot Com bust of the late 1990's, The Sub-Prime crisis of 2008 and now the double combination of Cryto and AI mass-hysteria. This time, it may be the worst. Too many would-be billionaires have pouted everything they have into this bubble now.
From Soaring 2600% to Losing 86%: The Collapse of Crypto's Hottest Trade
MSTR warning. Pay heed and protect yourself. Also look up The Tulip Craze of the 1630's and the South Sea Fraud of the 1700's. It is very alarmingly similar to what we are seeing today. Not just with Cryptocurrencies but also all shouts of AI, Robots and Quantum Computing. Not that these ideas will never work but that they will likely deliver a worthy value for a long time. Just like the South Sea Co made the promise that the company had exclusive trading rights between England and South America. Even though, back then, Spain controlled South America and England was at war with Spain.
From Soaring 2600% to Losing 86%: The Collapse of Crypto's Hottest Trade
Bitcoin resumes it's slide after a short few days of recovery. The pattern seen this year suggest a new low will happen before the year ends. Be careful and watch closely if this is happening because it may mean cryptocurrencies are heading into a deep slump.
Bitcoin Sees First Annual Divergence from Stock Market in a Decade
$Strategy(MSTR)$ is confirmed not being included in the S&P100. The news just released announced the inclusion of Carvana and 2 others, but not MSTR. Article reproduced here:- A Carvana used-car "vending machine" in Indianapolis. Shares of Carvana zoomed more than 10% after news of its inclusion in the S&P 500 index. Carvana and two other companies will join the S&P 500 in about two weeks, S&P Dow Jones Indices said late Friday - dashing the hopes of those investors who expected bigger tech names or a crypto giant to get the honors this time around. Shares of Carvana Co. rallied 10% in after-hours trading Friday. Joining the online used-car retailer on the premier U.S. stock-market index SPX are building-materials maker CRH
The real fear is the mirage is starting to fade. Just like the Tulip craze in the 18th century, people may now be realising Crypto value exist only in the imagination of people who just want the next guy to be the last guy holding the bag when it crashes. The truth is, the promoters of cryptocurrencies are also the ones hoping and praying they will not be that last guy holding the bag.
Bitcoin Sees First Annual Divergence from Stock Market in a Decade
Why should anyone be surprised? These are all fake organisations with no intrinsic value. They don't produce anything of any value. They don't offer any service of any worth. The only thing that drives any perceived value are the greed of people who push up the prices only hoping to offload them at the optimum prices to any sucker that is stupid enough to believe the hype that Crypto's will always appreciate in value.
The 26-Minute, 51% Wipeout That Deepened the Trumps’ Crypto Woes
MSTR bounce is not sustainable. It's a dead cat. The business model is false and the clock is ticking against it. First comes the dividend payment that has to be made. This will raise pressure on finding the cash to pay with. Next comes the matching of price of shares versus float and the value of it's sole asset, Bitcoin. Remember, it's breakeven cost of Bitcoin is around $174,000. That is a just a sneeze from last night's $181k plus. Once Bitcoin falls below $174k, all hel breaks loose.
Sell shares to raise dollars to pay dividends? How is this allowed? You are supposed to pay dividends from profits from trading or business operations. How is this not a ponzi?
Strategy Announces Establishment of $1.44 Billion USD Reserve and Updates FY 2025 Guidance