MSTR Think about this: What if Trump in fact creates a federal crypto reserve, which I'm sure everyone here would applaud. Where will the money come from to buy the BTC and other crypto? The govt. already runs a trillion dollar plus deficit, which the new admin has pledged to cut.
Elon and Trump are not idiots, and they will have taken note of Saylors scheme to borrow money at low cost to buy BTC to drive up the price, enabling the company to borrow more money and repeat the cycle. It's a self-fulfilling scheme that relies on selling overpriced shares (Market Cap vs Market Value of BTC holdings) to keep the share price from collapsing back to BTC holdings market value.
The US Govt can do the same exact thing by selling 30 year T-Bills at 0% interest and use the proceeds to buy BTC. As BTC price increases, dividends would be paid back to the bond holders. Sound familiar? It should, because that's basically the same thing Saylor is now doing except MSTR is issuing common stock and now is proposing issuing Preferred Stock that will pay dividends back to bond holders.
The govt can not legally turn a profit, so 100% of BTC yield earned through BTC price appreciation would be paid back to bond holders. The bonds would be backed by the full faith of the US Govt. and could be bought by corporations and foreign countries, just like regular T-Bills. There would be 0% slippage from brokerage fees and management fees, so it would be a pure BTC play.
The bonds would have no carrying cost on the US budget because they would be issued at 0% interest. This would be perfectly legal under current law and would only require a simple majority of Congress to enact by passing a continuing resolution.
At that point, why would anyone be stupid enough to buy BTC exposure from some private entity like MSTR that has no fiducial responsibility to pass BTC profits back to shareholders? Someday Saylor may decide he wants to sell some or all of the MSTR BTC holdings and pay the net proceeds to himself and board members as a bonus for a job well done.
I'm a simple country boy and figured this out in 5 minutes and one Lucky Strike. Trump and Elon are geniuses at business and finance. You think they won't think of the same thing or something very similar? Count on it.