God Always First | Business | Co-Founder of Hush Lifestyle Boutique | Venture Capitalist | Dividend ETF Investor | $BTC Maxi & $MSTR Hodler | The 🐸 is Stealth
I don’t know, call me crazy. At $88.60 for $STRC is good entry point to get 11.5% , and if they raise it 12% biweekly pay out it gets even better. This proffered credit instrument is not a stable coin.
🔥STRATEGY BUYS 1,587 BITCOIN AND ADDS $100 MILLION TO THE USD CASH RESERVE🔥
Strategy's capital markets activity last week was ACCRETIVE to MSTR shareholders.
They issued 1,732,553 MSTR shares and raised $209M.
They bought 1,587 BTC for $100M and increased the USD Reserve by roughly $100M.
That means the common residual got two things:
1,587 BTC and about 1,559 BTC-equivalent cash at $64,126 BTC
That is roughly 3,146 BTC-equivalent added to the common residual.
Did the new shares bring in more residual BTC-equivalent value per share than existing shareholders already had?
Yes.
After the transaction:
Net senior claims in BTC:
($22.2B - $1.1B) / $64,126 = 329,040 BTC
Common Equity BTC:
846,842 - 329,040 = 517,802 BTC
CEBE:
517,802 / 356.320M basic shares = 145,319 sats/share
Before the transaction, CEBE was roughly 145,142 sats/share.
Verdict:
145,142 → 145,319 sats/share
That is +177 sats/share, or about +0.12% accretive.
BTC-only looked dilutive. BTC + cash was accretive.
That is why CEBE matters.
Common equity holders do not merely have exposure to the newly purchased Bitcoin line item.
They own the residual economic exposure to the balance sheet after senior claims.
BTC matters. Cash matters. Debt matters. Preferreds matter. Share count matters.
CEBE captures all of it:
I don’t see anything wrong with selling the $BTC that $Strategy has sold. I’m just paying attention of how affects Bitcoin price action in the market. If he sold 32 bitcoin and that little amount moves the market to a lower price action, then you need to kinda worried for future manipulation. If anything I feel he is showing that there liquidity within his company.
@StrategyMaxi@saylor@phongle Competition is so healthy, especially when it comes to these new products that are coming out that is based, and backed off $BTC. Cross promotion, is a good thing and Strive is doing a great job. Just my opinion. 🚀