Prestige

#bitcoin

[Prestige @THEedHUNT]

I find that people often overthink the simple things in life

[𝐀𝐍𝐓𝐔𝐍𝐄𝐒 @Antunes1]

The new Acting Attorney General 🤡

Todd Blanche: We’re not going to prosecute the predators in the Epstein files or release their names to the public.

[Prestige @THEedHUNT]

The most shocking name on the Epstein List is Punxsutawney Phil

We trusted him with the weather… only to find out he was compromised

[jeeba @adhd_jeeba]

why do they put carageenan in literally everything. like for no reason

[Jeff Park @dgt10011]

if you really sit down with the fact that our political system once knowingly asked us to vote between two presidential candidates each deeply affiliated with Epstein, it makes sense that this system must be mercilessly burned to its ash and rebuilt for the sake of our children

[Biff @Biffdon]

I'm a little confused. Did the FBI just collect a bunch of evidence and tips against a ton of people and then not follow up at all or investigate at all?

[Prestige @THEedHUNT]

@Brennan_BTC22 @piovincenzo_ Could you tell my why you think that?

You can be against the financialization of BTC, but it’s hard to discount the idea all together. It seems pretty intuitive to me

[Prestige @THEedHUNT]

Forced Appreciation: The Bullish Case for STRK

The conventional belief at this moment is that preferred shares will appreciate over the next 2-3 years as investors/institutions grasps this new market and rerate shares based on a gap to yield on sovereign debt.

There are two major obstacles I see in the way:

(1) The investor accepting the yield of STRF or STRD must inherently believe that BTC has value. Therefore, the alternative for most of these investors is not treasuries, but rather BTC. Yields will need to stay high to entice this investor to stay in the these preferred shares rather than buy BTC.

Example question- If you own STRD today, and it 2x to $150/share (yield down to 6.5%), would you keep a strong allocation of your current shares, even if the yield is higher than treasuries? My guess would be no.

(2) Saturation by MSTR issuing new preferred shares is a headwind for natural appreciation. Put yourself in Saylor’s shoes. He has mentioned countless times that BTC is appreciating north of 30% for the next couple decades. In that scenario, him selling prefs at a yield of 8%, 10%, 12% or higher is still a strong ROI for his company. In cases of natural appreciation and lower yields, there will be strong temptation to issue more shares into strong liquidity. Finally, there is the reality that MSTR wants to show common shareholders the strength of this strategy, so he would error on the side of benefitting common shareholders with more BTC rather than pref shareholders with appreciation. This is not to say there will be no appreciation (obviously), but that it will be more muted than expectations.

Why does appreciation matter? All of these preferreds will be ‘stickier’ in your portfolio than most expect. Due to the beauty of dividends being classified as ROC, there is less and less incentive to sell as your cost basis is lowered. At a 0 cost basis, any alternative option that is marginally better will be passed on, as the taxes alone would negate the benefit.

STRK, unlike other preferred shares, can force appreciation with the optionally to convert for 0.1x MSTR shares. When MSTR reaches $1,000, STRK will trade roughly in tandem with MSTR common shares on a percentage basis from that point forward.

Does that mean STRK will trade at $100 when MSTR trades at $1,000… Absolutely Not.

(1) The cumulative dividend will be a benefit over common shares, although it will become less significant as growth continues

(2) STRK has a moving liquidation preference, which will float upwards with the share price. This provides significantly more downside protection than common shares.

There are still cases I can see for other preferred, but I think STRK will outpace other preferreds in return over the next decade.

[gabe @allgarbled]

There was a period of time when everyone was foam rolling their calves. You’d go to somebody’s house and they’d be sitting on the floor rolling back and forth on a piece of foam like “my calves are so tight.” You don’t see that as much anymore.

[Prestige @THEedHUNT]

@fiscal_ai A rough list… Must be going for a big contrarian view, because I view some of these as duds (Hertz & Chipotle)

[Prestige @THEedHUNT]

@Papa_Roux @hillery_dan I am right there with you. I don’t think they would ever call. Just ATM and then lower yield at months end to balance out

[Prestige @THEedHUNT]

I’ll say it… It’s a good deal

Everyone is so scared of the PIPE, but that information was the reason they got a 210% premium from announcement day.

SMLR leadership was obviously aware of PIPE, and they both basically structured the deal as if SMLR investors were part of the PIPE.

What does ASST get?
Show off their alpha Bitcoin approach in a hope to retain investors post-PIPE & increase in BTC/share

What does SMLR get?
(1) Upside potential from ASST stock if it doesn’t fall to PIPE price
(2) Escape from negative mNav

Not a lot of drawbacks from my POV

[Eddy Elfenbein @EddyElfenbein]

This market right now is eerily like the one in 1638.

[Prestige @THEedHUNT]

@reallytanman Hmm, I am going with The Fresh Market

[Everything Price Sufferer (but especially eggs) @agraybee]

It's Game of Thrones and it's not really an argument. This show was a cultural juggernaut, every week the whole internet watched together, it was endlessly quoted, children were named after the characters, and no one brings it up anymore because the last season was so awful.

[Thomas Massie @RepThomasMassie]

It’s absurd that one man sets interest rates for a “free” country.

End the Fed.

[motorhome laboratories @motorhomelabs]

The real reason there's carrageenan in everything by the way:

[☔ @Whotfismick]

Me going to another city because I couldn't switch lanes

[Jesse The Free 🏴 @Jessethefree]

I don’t know how much more 4D chess I can take man.

[Saifedean Ammous @saifedean]

Florida man reads The Bitcoin Standard; buys 3% of all the bitcoins

[Prestige @THEedHUNT]

@tintinjpeg Crushing it, Tina!