Old $MSTR:
1. Raise capital via $MSTR.
2. Buy Bitcoin.
3. Repeat.
New $MSTR:
1. Raise capital via $STRC (Digital Credit), $MSTR (Digital Equity) and $BTC (Digital Capital).
2. Allocate capital based on what maximises ROI at any given moment.
3. Compound Bitcoin Per Share.
4. Repeat.
The business model is now multidimensional.
MSTR already back up to a 1.05x mNAV.
They can continue to sell MSTR for Bitcoin or cash for the reserve... both are accretive for shareholders.
They can pretty much survive any realistic bear market... this is an absolute cake walk compared to 2022.
@PiusSprenger People like you are trying to “jawbone it down”.
Are you long $STRC? Are you short $STRC? Why would you care if you didn’t have a position?
I’m long $STRC and plan to about double my position and lower my cost basis when I get a cash disbursement soon.
If $BTC goes up hard - I will be spamming $MSTR to sell $BTC and buy $MSTR and lock in an immediate profit.
Once the arbitrage goes away for the scumbag fast money then the market will be orderly and make sense.
There will be non economic actors (ie political or governmental groups) and competitors (legacy banks and Wall Street lackey) that will still try and manipulate price.
But all the attention is free marketing for $STRC and $MSTR.
If $BTC goes up hard - I will be spamming $MSTR to sell $BTC and buy $MSTR and lock in an immediate profit.
Once the arbitrage goes away for the scumbag fast money then the market will be orderly and make sense.
There will be non economic actors (ie political or governmental groups) and competitors (legacy banks and Wall Street lackey) that will still try and manipulate price.
But all the attention is free marketing for $STRC and $MSTR.
Ok boomer. You can own gold and bitcoin.
It’s amazing how long Cobalt has stayed in active use - primarily in state governments etc. Java will be a programming language much longer I believe.
$BTC is the monetary “store of value” blockchain that has become the incumbent blockchain.
I believe it will be the chain of choice for “digital scarcity” for the next twenty years. If it does that perhaps it will last longer.
@jfhksar88 Bitcoin is a store of value like gold.
A stable coin is the closest to a US dollar.
But as J.P. Morgan (the person) said the only true money is gold all else are I.O.U.s
If $BTC doubled and $MSTR stayed exactly the same price - which couldn’t really happen - but anyway. They could and should just sell $BTC and buy back $MSTR because it would be way under mnav.
Right now there are outside actors trying to manipulate $STRC for non economic reasons or rather to maintain another business model.
@BTC_broo Bro - it’s like math bro.
$MSTR uses leverage to buy $BTC so when $BTC goes up $MSTR will go up. It can be arbed with options so it will correlate over time.
@StrategyMaxi@BitStrategy21 $BTC is sort of a binary bet. That means there is really only two likely outcomes.
Either it stalls out and it’s going to zero. Or it will continue to compound and go much higher. Yes it can have steep sell offs but it will trend one way or the other.
Whaa.
$BTC is not in the S&P 500. S&P 500 is the largest US stocks that meet certain criterion. Most big US names are in it.
$MSTR is a leveraged bet on Bitcoin - meaning they use their stock and bonds to raise money and then they buy large amounts of $BTC it has worked well over the past 6 years. I bet 6 years from now we will be glad we own $MSTR!
Yeah - I think it depends on the broker if they double hypothecate - I think even the reputable firms have like a “margin of error” wiggle room. Pun intended.
But the main point is it’s much smaller float so it will by necessity be a hard to short stock.
Saylor hyped the volatility of $MSTR but now we are seeing the downside of options and leverage in $STRC. Strategy just needs to build out a strong capital markets team. Tell them to hire me. This will get worked out and digital credit will be a great asset for us plebs!
Stay Thirsty my Friends!