Max Constraints

The Bullshit Detector for monetary slogans.
Pro Bitcoin
Post-Austrian
Running the Strategy Machine simulation LIVE!

[Max Constraints @ThePostAustrian]

Strategy just showed the financing path more clearly than usual.

On November 2 it reported buying roughly 811 BTC for $65.5 million while also acquiring 2,092,035 STRC preferred shares for $208.2 million.

The cash that paid for the STRC came from the flexible USD Cash category. To replenish that pool, Strategy sold 1,178,552 new MSTR Class A shares for $164 million in net ATM proceeds, then allocated $98.5 million of those proceeds back into USD Cash. The other $65.5 million went straight to Bitcoin.

The arithmetic closes cleanly: Opening USD Cash of $242.4 million + $98.5 million allocated from the ATM − $208.2 million spent on STRC = $132.7 million closing USD Cash.

Without the new equity proceeds, the same preferred repurchase would have left the flexible pool near $34 million. Even with the replenishment, cash is down sharply from $833 million on October 4 and from $242 million the prior week. The separately designated USD Reserve paid $43.4 million of preferred dividends and ended around $4.79 billion; that reserve is not the ordinary source for these buybacks.

This is the first week the filing explicitly shows new common-share proceeds being used both to buy Bitcoin and to restock the cash inventory that is funding near-par preferred repurchases. The immediate discount on the STRC was modest (roughly 0.5% below stated amount). At the current 12% rate those shares represent about $25 million of annualized external dividend exposure while they remain outside entitlement, but the shares can still be resold and the rate is variable.

The open question for existing common holders is straightforward: the company issued additional Class A shares, used part of the proceeds to support preferred-claim management, and left itself with a much smaller flexible cash buffer. Whether that exchange improves claim-adjusted Bitcoin per share is not resolved by the 8-K.

The full machine reading, including the multi-week cash bridge, the unused $748.6 million repurchase authorization versus remaining cash, the daily-dividend transition, and the counterfactuals, is here:

[Max Constraints @ThePostAustrian]

@WatcherGuru It's called NOvember for a reason.

[Mr. Keynes @TyKeynes]

The Austrian says your rent is a market signal. The neoclassical says you've revealed your preferences. The Keynesian wants a subsidy. The Marxist wants a revolution.

Your landlord just raised the rent another $400 and doesn't give a fuck about any of them.

[Max Constraints @ThePostAustrian]

@PeterSchiff @elonmusk Ehhh yeah buddy. It's the Deep State's arm.

Do you think strippers like you?

[ilhan dögüs @ilhandogus]

Paradox of liquidity and debt-deflation at play:
Overindebted agents selling illiquid assets (here homes) to pay down their urgent debt can't raise enough liquidity, as buyers are aware that sellers are in trouble and waiting for further price cuts to buy later.

[Mr. Keynes @TyKeynes]

The "crowding out" myth: government deficits don’t squeeze private investment.

They create net financial assets.

A thread.
🧵1/12

[Max Constraints @ThePostAustrian]

Peter thats a stopwatch, not a balance sheet model.

STRC buybacks are optional, not bills due next Tuesday.

Yes USD cash is down 90%. But Strategy added 100mil of MSTR proceeds to that pool this week.

Whether STRC holds near $100 without the issuer bid is the real question.

But keep baiting us. We enjoy it.

[Max Constraints @ThePostAustrian]

https://t.co/2Nwf91ZkDt

[Max Constraints @ThePostAustrian]

https://t.co/32z29yTLv9

[Max Constraints @ThePostAustrian]

Strategy just showed the financing path more clearly than usual.

On November 2 it reported buying roughly 811 BTC for $65.5 million while also acquiring 2,092,035 STRC preferred shares for $208.2 million.

The cash that paid for the STRC came from the flexible USD Cash category. To replenish that pool, Strategy sold 1,178,552 new MSTR Class A shares for $164 million in net ATM proceeds, then allocated $98.5 million of those proceeds back into USD Cash. The other $65.5 million went straight to Bitcoin.

The arithmetic closes cleanly: Opening USD Cash of $242.4 million + $98.5 million allocated from the ATM − $208.2 million spent on STRC = $132.7 million closing USD Cash.

Without the new equity proceeds, the same preferred repurchase would have left the flexible pool near $34 million. Even with the replenishment, cash is down sharply from $833 million on October 4 and from $242 million the prior week. The separately designated USD Reserve paid $43.4 million of preferred dividends and ended around $4.79 billion; that reserve is not the ordinary source for these buybacks.

This is the first week the filing explicitly shows new common-share proceeds being used both to buy Bitcoin and to restock the cash inventory that is funding near-par preferred repurchases. The immediate discount on the STRC was modest (roughly 0.5% below stated amount). At the current 12% rate those shares represent about $25 million of annualized external dividend exposure while they remain outside entitlement, but the shares can still be resold and the rate is variable.

The open question for existing common holders is straightforward: the company issued additional Class A shares, used part of the proceeds to support preferred-claim management, and left itself with a much smaller flexible cash buffer. Whether that exchange improves claim-adjusted Bitcoin per share is not resolved by the 8-K.

The full machine reading, including the multi-week cash bridge, the unused $748.6 million repurchase authorization versus remaining cash, the daily-dividend transition, and the counterfactuals, is here:

[Max Constraints @ThePostAustrian]

https://t.co/32z29yTLv9

[Max Constraints @ThePostAustrian]

Rich people shouldn't be allowed to vote. They will vote for anyone promising to lower taxes! No brainer.

Middle class shouldn't be allowed to vote. They will vote for anyone promising free healthcare and schooling. No brainer.

Women shouldn't be allowed to vote if they are housewives. They are paying no taxes. No brainer.

[Max Constraints @ThePostAustrian]

Well said.

[Steve Hall @ProfHall1955]

Bankers' accounting operations are labyrinthine, deliberately complex and jargonised (and very boring) to muddy understanding and retain exclusivity. But if we take some time to follow @foscaecon's critique below we can drill down to a basic principle. Neoliberals like Brooks are driven by a compulsion to express every issue or transfer of money as if it were a form of private loan, a debt that must be repaid with interest. As long as we continue to believe and act on that principle, we will continue to reproduce neoliberalism as the current instutionalised variant of the privatised debt-servicing system established in the Near East around 1500 BC. Escape that parasitic financial oligarchy and everyday people could begin to shape their own destiny.

[Steve Hall @ProfHall1955]

Bankers' accounting operations are labyrinthine, deliberately complex and jargonised (and very boring) to muddy understanding and retain exclusivity. But if we take some time to follow @foscaecon's critique below we can drill down to a basic principle. Neoliberals like Brooks are driven by a compulsion to express every issue or transfer of money as if it were a form of private loan, a debt that must be repaid with interest. As long as we continue to believe and act on that principle, we will continue to reproduce neoliberalism as the current instutionalised variant of the privatised debt-servicing system established in the Near East around 1500 BC. Escape that parasitic financial oligarchy and everyday people could begin to shape their own destiny.

[Max Constraints @ThePostAustrian]

@Handre @TonyLaneNV lol

[Max Constraints @ThePostAustrian]

Why bother at all with a revolution? Politicians are already for sale!

Why don't they just buy them and bring Libertopia about right now?

[Mr. Keynes @TyKeynes]

Libertarians want to abolish the government and replace it with private police, private courts, private armies, and private agencies that enforce contracts.

Congratulations, you reinvented the fucking state, except now Amazon runs it and justice requires a Prime subscription.

[Mr. Keynes @TyKeynes]

A billionaire gives his son $10 million to open a business, and he's praised for being a self-made entrepreneur.

A single mother gets $200 in food stamps to feed her kids, and she's called a lazy fucking parasite living off other people's money.

Explain that shit to me.

[Max Constraints @ThePostAustrian]

Shareholder Value Creation = Corporate-speak for Stealing with PowerPoint.

[Mr. Keynes @TyKeynes]

Private equity is a remarkable innovation. You buy a functioning company, load it with debt, sell its assets, fire half the staff, collect millions in fees, and when it collapses, explain how creative destruction makes capitalism so fucking efficient.

[Max Constraints @ThePostAustrian]

@PeterMcCormack @abioconnor_ Reconcile with this and you win the History of Earth game...
https://t.co/UzN3KodBgA

[Peter McCormack 🏴‍☠️🇬🇧🇮🇪 @PeterMcCormack]

The minimum wage is anti-business. It makes viable businesses unviable. It is anti-freedom as it makes some work illegal.

It is pro vibes.

Abolish the government.

[Max Constraints @ThePostAustrian]

Agreed but Marx didn't forsee the second coming of the rentier in the form of banks.

We pseudo-capitalism our way to techno-fascism through "publicly" owned stocks distributing stablecoin profits...... is probably funnier.

[Elshayib @elshayib_]

We capitalism our way to communism and call it Universal Basic Income.

Funny isn't :)

[Max Constraints @ThePostAustrian]

@elshayib_ Agreed but Marx didn't forsee the second coming of the rentier in the form of banks.

We pseudo-capitalism our way to techno-fascism through "publicly" owned stocks distributing stablecoin profits...... is probably funnier.

[Max Constraints @ThePostAustrian]

How about we replace welfare with capital to start a business and replace the punishment for poverty with reward for production?

More humane i posit. How exactly will the poor benefit from less power?

Why don't we abolish voting for incomes over 200K?
They don't need it. They won.

[Wall Street Mav @WallStreetMav]

Only taxpayers should be allowed to vote.

Anyone on welfare benefits should forfeit their right to vote until they are off of government assistance.