The shift to "we turn bitcoin into money" is a cancer. Allowed me to see a broken incentive I didn't see before. Bitcoin is money. Not digital capital. ASST / MSTR are Digital Alchemy. Just repeat this line to yourself: "he's trying to get me to buy his stocks and not bitcoin".
@ha1656976963511@fejau_inc He should start this week by selling enough bitcoin until he gets the mNAV of MSTR back to 1.00.
That would be the accretive thing to do and it actually might help.
They issued common stock to buy the new bitcoin announced today
But here is what people will be missing
With about 350 million basic shares outstanding, the gross NAV per share comes to around $157, but MSTR was trading at $118 -a significant discount. This means issuing the new shares at $118 to acquire Bitcoin is actually dilutive to the Bitcoin backing per share, since each new share is being issued below its proportional claim on the Bitcoin holdings.
They also put about $100 million from the new issuance of MSTR into the cash reserve, even more dilutive, because zero Bitcoin purchased with that portion. So the flywheel is now running in reverse. Shareholders will have less BTC per share each time they do this.
Put another way, 1,550 coins spread over 1,409,600 new shares is 0.0011 bitcoin per new share, less than half the 0.00242 each existing share carried. Bitcoin-per-share falls.
@PhillyPhillyBTC@btcefe@saylor They likely have no other option to get mNAV back up from 0.80 to 1.00 other than selling corn. Maybe the market will take it better the second time around.
Or maybe they will just continue to hit the ATM at 0.80 mNAV and the orange tie wearing idiots will think it's accretive.
@BitcoinedOne@GhostofWhitman@btcefe@saylor They hit the ATM at 0.80 mNAV to buy the bitcoin. It was like they paid $150 per share for the bitcoin while everyone else's $MSTR was only worth $118. That is not accretive dilution.
@btcefe@saylor They don't care. He's been diluting them at 0.80-0.90 mNAV for months and they still think it's accretive dilution because the fake mNAV on their website is above 1.20.
@UpperEchelonUS@PunterJeff@mattkratter He's not talking about @mattkratter. Matt operates with zero career risk. No boss, no VC masters, no Wall Street capital to appease and doesn't care about getting invited to bitcoin events. That is what allows him to say what he thinks.
This is obviously about @jackmallers
Bitcoin cash extraction has collapsed.
At the cycle peak, realised profit extraction hit over $55B on a 30-day basis.
Today, it is closer to $3B. That is an almost 10x drop in profit-taking,
Historically, that kind of collapse is exactly what you want to see in accumulation territory.
@pr1234321@AlexesNakamoto Yep, most ppl didn't say he will get liquidated.
If bitcoin has one more big dump $STRC will trade far below $100, the real mNAV will be even worse than the current .80, and the bitcoin will be down 40-50%. At that who will still believe in the prefs business model?
@scottmelker STRC is marketed as a reliable safe investment. If we're unfortunate and bitcoin breaks down at 59k we'll see how safe it is.
What happens to $STRC at 50k, 40k, 30k? Probably $80s at 50k, $70s at 40k, $60s at 30k.
Grandpa's investment down 40%.