Latest / Simply Bitcoin / Did JP Morgan Just FORCE MicroStrategy to SELL Their Bitcoin?! | Bitcoin Simply

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Did JP Morgan Just FORCE MicroStrategy to SELL Their Bitcoin?! | Bitcoin Simply · Simply Bitcoin

• 0:00
  My wife yelled upstairs this morning about the garbage truck
• 0:02
  coming and that I need to take out the trash.
• 0:04
  I dismissed her completely because that wasn't the garbage
• 0:07
  truck, that was me backing up the truck to buy the dip when
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  Bitcoin fell below 81 K. Fear has gripped the market by
• 0:14
  the cojones and we've reached levels of fear worse than the
• 0:17
  FTX collapse. With Bitcoin down to 25% in
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  November and 40% from all time highs, some people are starting
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  to get concerns about whether Bitcoin treasury companies like
• 0:26
  Strategy are going to make it or not.
• 0:28
  JP Morgan is warning of MicroStrategy being delisted.
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  Is this the Wall Street FUD machine kicking into full gear,
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  or is there legitimacy behind this claim?
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  There's an analyst out there claiming that none other than JP
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  Morgan and Jamie Dimon are manipulating MicroStrategy.
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  Are they shorting shares? Are these two things tied
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  together? Tom Lee also thinks
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  MicroStrategy is a victim of Wall Street hedging.
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  Today, we're going to dive into this market manipulation, what
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  its implications are for MicroStrategy, and as always,
• 0:55
  what you should be doing on days like these.
• 0:58
  Today isn't one of those tell you something new episodes.
• 1:00
  It's one of those remind you of what you should already know
• 1:03
  episodes. Nothing stops this train.
• 1:05
  This is Dante Coke with Bitcoin. Simply let's go hot news for the
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  day. Ever since MicroStrategy entered
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  the big leagues of Wall Street with its Bitcoin treasury
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  strategy that's taken the world by storm.
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  Well, the major institutions have started to take notice and
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  it's been rumored by Michael Saylor and others that the FUD
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  media machine happening to MicroStrategy whenever its price
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  rips and also the movements in their stock, well, they don't
• 1:32
  seem to be totally normal. And with random hit pieces like
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  this coming out today from JP Morgan saying that MicroStrategy
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  could be delisted, you have to wonder what's the actual going
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  on behind the scenes. Is what this analyst saying in
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  this video really true? This means that JP Morgan is
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  lending out shares that it doesn't actually have.
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  So recently I posted a video about the margin requirement of
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  JP Morgan for MSR. Now I've learned something even
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  more interesting. There's a customer that was
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  trying to send their MSTR stock out of JP Morgan, so they're
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  trying to transfer that stock from JP Morgan to a different
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  brokerage account. OK.
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  Now, if you hold stock in a margin account, JP Morgan can
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  hypothecate that stock. They can lend that stock out, or
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  they can use that stock and they can short that stock.
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  Now this customer wasn't able to send those shares out.
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  JP Morgan didn't have the stock to be able to send out.
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  So that means that JP Morgan doesn't have access to those
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  shares. So they're either short or they
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  lent out all the stock and they can't get it back, or they can't
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  borrow other stock to be able to deliver out that stock.
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  Now that means that JP Morgan as an institution is short to
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  deliver on those shares and as a huge institution and only trying
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  to deliver it out a small number of shares, that's pretty
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  curious. Like why is JP Morgan not have
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  access to any shares to be able to deliver out to this customer?
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  And although this isn't as a nefarious as a clip, there might
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  be some truth behind this claim that big Wall Street funds are
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  actually manipulating the price of MicroStrategy.
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  And Tom Lee doesn't think it's as nefarious, but he believes
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  that MicroStrategy is the only reasonable way to hedge their
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  crypto positions. Is MicroStrategy down?
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  Because. Bitcoin is down.
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  Or is Bitcoin falling in part? Because.
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  Because the strategies. Of the world the Michael Saylors
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  of the world have. To sell the crypto because
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  their. Equity.
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  Is going down. What's the chicken?
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  What's the egg? Yeah.
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  Well, again, you know because of my world and research and on bit
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  mine, we are really plugged into all the trading desks and all
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  the clients that trade. Anybody who has a sizable
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  Bitcoin long position, OK, let's say it's more than a billion.
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  They have very limited ability to hedge it in crypto
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  derivatives like calls. The Max they can do is maybe 5%
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  of their holdings. And then if you go to
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  traditional CME exchanges, they're contract sizes prevent
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  someone from hedging a billion dollar portfolio.
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  However, someone can use Microstrategy's options chain,
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  which is so liquid to hedge all of their crypto.
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  So MicroStrategy is essentially absorbing all the hedging
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  pressure that the crypto industry is trying to do to
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  protect the Bitcoin longs. So the reason MicroStrategy is a
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  leading indicator, it's actually the only convenient way to hedge
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  someone's long is to short MicroStrategy or buy puts.
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  That's what we're seeing today. You have to wonder if you're a
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  shareholder of MicroStrategy, is this a cause for concern?
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  MicroStrategy doesn't seem to be too concerned about it so I will
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  take their word for it. They say at current prices they
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  should be able to pay dividends for about 70 years.
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  Michael says that they would have to see it 80 to 90% drawn
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  out just to be collateralized 1 to one with their debt.
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  Would a Bitcoin goes down more? So is there a point on the
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  downside that triggers some sort of domino effect?
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  The company's engineered to take an 80 to 90% drawdown and keep
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  on ticking, so I think I. Think we're pretty?
• 5:10
  Indestructible our our leverage. Is you know.
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  In the level of 10 to 15. Percent going.
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  Towards 0. Right now, which is extremely,
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  extremely robust, they have about 8 billion in debt and 50
• 5:22
  million in Bitcoin equity. And so Sailor remains confident
• 5:25
  as he tweets things like, some will say that we got lucky, but
• 5:28
  one thing is for sure, when you play with leverage, you're bound
• 5:30
  to get burned. And that's why Jack Mahler's and
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  21 Capital are taking a different strategy than micro
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  strategy when it comes to being a Bitcoin treasury company and
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  how they're going to finance their Bitcoin purchases.
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  Yeah, yeah. So it should.
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  Be clear, Jack. I mean, you're saying?
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  Strategy's model depends on perpetual leverage, while 20.
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  One's model depends on. Perpetual accumulation, because
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  those are. Two very different.
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  Philosophies yeah I think you know this could sound extreme or
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  or sound like a dig but you know it's not We want to be the
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  treasury company that can afford it right We you know if you look
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  at Tether and myself and our leadership team.
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  So I Co founded the business with tether.
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  Our largest outside investor is SoftBank.
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  You know we have what it takes to build massive cash generating
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  businesses within the industry strike is one of the most
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  profitable per employee Bitcoin companies in the world.
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  Tether is probably the most profitable per employee company
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  period in the history of mankind.
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  So we have lots of ideas and lots of future plans to build
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  cash flow within the market that gives investors an ability to
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  participate in Bitcoin's story through an operating business.
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  And then conversely, we're already the third largest
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  corporate holder of Bitcoin. We will be able to add to that
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  position substantially once we're approved.
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  And we want to be the largest holder of Bitcoin.
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  And we think, you know, we can take the best of what strategy
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  is, which is a large Bitcoin holder and ability to
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  accumulate, whether it's through monetizing volatility, cheap
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  cost of capital, access to the capital markets.
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  And the the best of someone like Coinbase, which is a first mover
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  and a leader within the industries they focus, which
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  Tether and I have been in our careers.
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  So that's us. We do not necessarily want to
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  add leverage to something like our M NAV.
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  We do not want to add leverage to our common equity
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  necessarily. That puts a lot of pressure on
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  future dilution and shareholders.
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  Do you have to finance? You know, we don't want new
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  investors being responsible to finance, you know, existing
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  preferred owners necessarily, unless, you know, we're missing
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  something. And if we are, we're going to
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  copy Michael Saylor. But so far we're, we're kind of
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  we're watching closely and have have more of a directional focus
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  on, on maybe optimizing for, for cash flows that would finance
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  something like convertible bonds that we would raise in the
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  future. That's interesting.
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  Yeah, No, I. Mean the.
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  Differentiator is there. As I was talking to somebody.
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  This past weekend and they said, you know, are these corporate?
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  Treasury companies just turning into.
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  Leveraged Bitcoin ETFs. Yeah.
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  But the the interesting thing about that question is there are
• 7:53
  leveraged, there are leveraged Bitcoin ETFs.
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  If you want to leverage a Bitcoin ETF, you can do that on
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  your own. And so the question is, you
• 8:02
  know, at 21, what can we provide the market that others can't?
• 8:06
  And I think the very obvious answer is not everyone is
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  Tether, Not everyone has been in Bitcoin 13 years, not everyone
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  has founded Strike and not everyone is SoftBank.
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  And so we plan to provide our goal has always be be the best
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  way to participate in Bitcoin's story in the capital markets.
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  We think we can bring both blue chip credibility and startup
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  upside to the capital markets. And we feel as if that was
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  missing. You know, Coinbase we don't
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  think is a Bitcoin company. We think they're a crypto
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  company and strategy does not have Bitcoin native cash flow,
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  does not build Bitcoin products and is relying on as far as I
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  can tell. And again, I know I'm going to
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  get all sorts of stuff from strategy shareholders and it's
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  not my intention, but I'm just trying to build a delineation of
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  there's, you know, being levered with expectations of financing
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  it through common equity or through Bitcoin sales versus
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  being able to build a business alongside it that can optimize
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  in in being levered and being more aggressive in Bitcoin
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  exposure. You know, that's where we want
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  want to live. I'm not a shareholder, so I can
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  speak on this with an outside objective opinion.
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  I believe in spending less than you earn and avoiding leverage
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  at all costs and when opportunities like today present
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  the themselves, you should have some cash on the sideline to
• 9:18
  take advantage. 50% drawdowns are the normal for the best
• 9:21
  investors in the world. I always go back to clips from
• 9:24
  Charlie Munger even though he said Bitcoin is rat poison
• 9:26
  squared when he talks about this is par for the course for the
• 9:30
  behaviors that you need to have if you want to generate outsized
• 9:33
  returns. I am continuously invested in
• 9:36
  American equities and but I've had my Berkshire stock decline
• 9:44
  by 50% three times and I don't it doesn't bother me that much.
• 9:52
  I we heard that it's just the natural consequence of adult
• 9:55
  life probably lived. So if you have my attitude, it
• 10:00
  doesn't really matter. I always like Kepling's
• 10:02
  stressing expression in that poem called called if and he
• 10:09
  said success and failure. He says treat those two
• 10:12
  imposters just the same, just roll with it.
• 10:17
  Treat those two imposters the same, you just roll with it.
• 10:20
  Like the tweet from Lynn Alden earlier, emotions get distorted
• 10:24
  and market when the Bitcoin price rips.
• 10:25
  What people get too excited when it goes down, they get too
• 10:28
  bearish. Nothing stops this train.
• 10:30
  I tend to look at people who are excited about Bitcoin on days
• 10:33
  like these, like Scott Besson, who seems pretty cheery when he
• 10:36
  saw him in a picture last night at the new Bitcoin bar pup key
• 10:40
  opening up in DC. Things look to be pretty good on
• 10:42
  the Treasury side. And that's because he knows that
• 10:44
  government governments have to print governments like Japan who
• 10:47
  say that they're going to intervene if the dollar to yen
• 10:50
  ratio reaches 160 and they're talking about hundreds of
• 10:53
  billions of dollars worth of stimulus packages.
• 10:55
  And when you understand this, you understand what assets are
• 10:58
  better than others. Do you want to hold Fiat
• 11:00
  currencies or stocks which can be manipulated?
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  Or do you want to own hard assets which are going to
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  appreciate in value versus the diluted assets which are being
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  printed into it? And that's why we work with a
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  On days like these, you're going to see the bears come out.
• 12:24
  Bears like Paul Krugman in 1998, even though he was a Nobel Peace
• 12:28
  Prize winning economist, he had this to say about the Internet.
• 12:32
  The growth of the Internet will slow drastically is the flaw in
• 12:34
  Metcalf's law, which states that the number of potential
• 12:37
  connections in a network is proportional to the square of
• 12:39
  the number of participants becomes apparent.
• 12:42
  Most people have nothing to say to each other.
• 12:44
  By 2000 5 or so, it will become clear that the internet's impact
• 12:47
  on the economy has been no greater than the fax machines.
• 12:51
  Turns out he was wrong by a factor of $100 trillion.
• 12:55
  And here's what he's saying about Bitcoin today.
• 12:57
  There is essentially no legitimate use for crypto, and
• 13:01
  nobody's using it for anything legitimate.
• 13:04
  Fewer than 2% of of Americans have ever made a payment in
• 13:08
  crypto. It's purely A speculative asset
• 13:11
  or a vehicle for for crime. It's used for money laundering
• 13:15
  and extortion and blackmail and blackmail.
• 13:20
  Well, if you want to blackmail somebody, you want to be able
• 13:23
  to, you know, have a non or a difficult to trace payment.
• 13:27
  It's the most amazing thing. You can not find any.
• 13:30
  I've been in many, many meetings where we actually, me and my
• 13:34
  friends, my economist friends, you know, as sympathetically as
• 13:39
  possible, ask, explain to us what function, what legitimate
• 13:44
  function does this stuff serve, and have never got an answer.
• 13:47
  Well, if it's so bad, why will the comments of this video?
• 13:50
  Be filled with people. Screaming at us, calling us
• 13:53
  idiots. Oh, because it's a cult.
• 13:55
  And the fact of the matter is the price has gone up.
• 13:57
  So people who bought in early feel very smart and but there's
• 14:02
  a yeah, my, my line about, about crypto is that it's a, it's
• 14:08
  techno Babble plus libertarian derp.
• 14:10
  And that's pretty much it still. But it's people are very
• 14:13
  passionate about it. My guess is that in 20 years him
• 14:16
  and all the people that were wrong about the Internet in 1998
• 14:19
  will also be wrong about this AI bubble in Bitcoin.
• 14:23
  They're not bubbles, but real technological innovations and
• 14:25
  they're going to be much bigger than you think.
• 14:27
  I'd be more willing to think like Mike Alfred then Paul
• 14:30
  Krugman. A lot of every six months they
• 14:33
  turn bearish on this and then they bounce right back.
• 14:35
  As AI is a 20 year theme, it's sort of like being bearish on
• 14:37
  the Internet. Like there were people who were
• 14:39
  bearish on the Internet for the last 25 years, but they all made
• 14:42
  less money than people who are long, right, long Bitcoin, long
• 14:45
  AI, easiest trades of your lifetime.
• 14:48
  You just hold them in large size for a decade.
• 14:51
  And we're at year two or three of a major uptick in AI CapEx.
• 14:56
  You're not going to see a huge recession with the biggest
• 14:58
  companies, the largest companies in human history with the
• 15:00
  highest cash flow, pouring money into.
• 15:03
  AI remove your emotions from your strategy at all costs.
• 15:06
  My coach used to tell me in sports, don't think Dante, it
• 15:10
  only hurts the team. You can't say that in 2025
• 15:12
  because kids are soft these days, but it does apply to
• 15:15
  investing. You have to remove your thinking
• 15:17
  and your behaviors on days like these and act rationally when
• 15:20
  the rest of the market is irrational.
• 15:22
  Buy Bitcoin in such a way that you remove irrationality from
• 15:25
  the equation altogether. Buy it in such a way that you
• 15:28
  never have to sell like I know. People are going to do that.
• 15:30
  So I always advise people buy the amount on a Bitcoin that you
• 15:33
  can hold forever. So whatever that is, don't,
• 15:36
  don't get cute and put 100% of your portfolio in Bitcoin and
• 15:39
  then try to decide when to sell the pay bills.
• 15:41
  But I think that's wrong. It presents a timing challenge.
• 15:45
  You have to become a hedge fund manager.
• 15:47
  If you are a hedge fund manager, that's fine, but most people
• 15:49
  aren't. It's not what they do for a
• 15:51
  living and you're asking them to become a hedge fund manager like
• 15:53
  you. You're going to have to decide
• 15:55
  which week, which month to trim your Bitcoin position to pay
• 15:58
  your bills. And I'd look at it differently,
• 16:00
  which is create enough Fiat income with whatever else you
• 16:03
  do, own a business, own dividend, stocks, bonds,
• 16:06
  whatever, and buy an amount of Bitcoin that you can sort of put
• 16:08
  in the vault and never sell it. You can choose to sell it if it
• 16:11
  goes to 1,000,000 or 2 million or whatever, you can choose to
• 16:13
  sell some in the future. But if you have, if you're
• 16:15
  forced to sell it because you over allocated, then you're
• 16:17
  going to get yourself in a bad position.
• 16:20
  And I'm OK being sort of in the minority and being contrarian,
• 16:23
  but I'm pretty certain I'm right about that.
• 16:25
  I've seen way better outcomes if you remove the emotional side
• 16:28
  and the decision of having to. Sell You can call me the
• 16:31
  Glengarry Ross of Bitcoin because I'm going to say that
• 16:34
  you should always be stacking, even on days like today, even
• 16:37
  when it's falling down all around you.
• 16:39
  These are the days when good investors make outsize returns.
• 16:42
  I remember in 2022, in 2021 during the FTX collapse when
• 16:46
  Bitcoin fell to 16 K and everyone thought that this was
• 16:49
  the time that everyone should get out.
• 16:51
  But there were some investors who backed up the truck and it
• 16:53
  made over 400% returns since that day.
• 16:56
  What kind of investor are you going to be today?
• 16:58
  Speaking of Glengarry Ross and always be stacking.
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  As always, I'm going to encourage you on days like
• 17:38
  these. Put the blinders on, Look
• 17:40
  forward, lock in. This is Dante Cook with Bitcoin.
• 17:42
  Simply happy stacking.