Beau Breedlove 🟢 🟢 🟢 🟢

#bitcoin

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@araseb_ @grok is this true?

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

$MSTR < 160k sats

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@JohnProperBTC @RobinSeyr Buying back the common doesn’t make the e ratio drop. It slows the drop or drives it back up toward 1. They will buy back common because it’s accretive. The death spiral sacrifice STRC to save MSTR.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@JohnProperBTC @RobinSeyr I don’t see where you demonstrated it, but actually you’re right.

My real point is that the number of BTC on balance sheet reduces while the STRC stays the same. Right now the STRC on balance has like 3x BTC backing it. Thats not a lot. What if it goes down to 1 or less than 1?

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis I have a game theoretical argument that I think is pretty certain if you want to hear it.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@JohnProperBTC @RobinSeyr If mNAV is below 1 they will run out of BTC before retiring all common shares.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@JohnProperBTC @RobinSeyr It’s accretive for MSTR which is how we know they’ll do it, but it reduces the ratio of BTC on balance to STRC outstanding. Once mNAV stays under 1 persistently, this is an unavoidable death spiral.

It also circumvents capital structure priority paying MSTR before STRC.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@BTCoptioneer Yes. The signs STRC will get liquidated are:

1. BTC dropping big
2. The dividend blowing up
3. mNAV sustaining below 1

None of these are happening yet in a big enough way. Maybe next cycle.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@MikeBrownsWorld @RobinSeyr That’s because it has greater returns 😏

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@RobinSeyr Doing so will be good for MSTR holders but it will cause the BTC rating on STRC to drop precipitously. Neither a rising BTC price nor a rising STRC dividend can stop this once we’re past peak BTC in BTCTCs

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis Deflation is the natural state of the free market. I didn’t assume BTC is the only money. Money is subjective. There is a game theoretical argument that bitcoin is the best choice, but we all make our own choice.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis With bitcoin you can decline to spend it as a way of boosting the purchasing power of other users. This isn’t true of other forms of money. So if you can live within your means, you can acquire bitcoin and never spend it. It becomes insurance against a future decrease in wages.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis Purchasing power is subjective. I don’t measure mine in milk. There’s a reason people don’t do accounting in milk.

If milk goes up with no end in site, I may look for work in a dairy farm. But I bet people more experienced would do that before me driving the prices back down.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@JohnProperBTC The 3 effects I talk about would happen in a correlated scenario and they compound. Especially the 3rd which gets exponentially larger on the margins unlike the others which don’t. It’s unstable.

If BTC goes up, STRC goes to par and he issues more dampening the positive effects.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

When they raise dividends from 11.5% to 12.5%, it will go from 32 years to 29.4 years of dividends.

When BTC falls 10%, the years of dividends will go down about 3 more years.

When mNAV goes below 1, they will sell BTC to buy back MSTR, and years dividends goes down even more.

[Strategy @Strategy]

We have 32 years of dividend coverage through our $BTC Reserve.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@PricedinBTC Dividend frequency is unimportant. They could pay annually and still achieve the effect they’re going for. They need to be able to adjust the accrual rate more frequently than once a month.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis It would be an anomalous 10 years, but what need is there to care about fiat if I don’t have any? I’ll be happy for the victims of fiat.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis You see dollars because you have dollars within you. I did not mention or imply dollars.

Everyone’s performance relative to BTC is negative while BTC is constant. There is no contradiction.

Don’t measure it relative to BTC or USD. Measure the performances relative to eachother.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis A price is the ratio of value of two assets. If you measure the price in dollars, you’ll get a market cap in dollars. That’s valid, but I wasn’t doing that when I made my points in this thread.

I measured it in BTC because it makes my points clearer.

[Beau Breedlove 🟢 🟢 🟢 🟢 @hyper_deflation]

@Pran10000 @BestisBitcoin @parkeralewis I am not. What makes you say that?