Lee Root

[Lee Root @LeeRoot8]

@GlennOnrampBTC I'm holding a 5% vol asset that pays a tax equivalent 18% yield and delighted to do so.

[Lee Root @LeeRoot8]

The pref suite has provided mstr common with ~$15 billion of btc buying power over the past year. 9 years from now let's conservatively price btc at ~$750k. The common will have paid out ~$15 billion to the prefs that exist as of today over those 9 years. The common will keep the remaining $135 billion of btc appreciation for themselves.

[Lee Root @LeeRoot8]

I didn't even mention the prefs; I was only referring to converts. The prefs are an asset on the books and as such contribute to the numerator. There is no corresponding liability as they only require (dividend) maintenance which even that can be suspend. Mnav is correct to my eyes.

[Lee Root @LeeRoot8]

@BitcoinTeacher_ Sold $1.4 billion of $110k+ btc basis (17.5k btc) to pay down the convert. Bought 24k 80k btc basis with strc proceeds lowering their overall btc cost basis while increasing btc stack. Atm’d the common for a 750 million of cash. Ironclad balance sheet

[Lee Root @LeeRoot8]

That has never once occurred with their balance sheet. Every convert issued, save for those that remain, have converted to common. Yes, if mstr pivots and repays the notes with cash, then note holders would collapse their short with equity buying power but not holding my breath on that outcome.

[Lee Root @LeeRoot8]

@EricSpracklen Crushed? I think anyone that bought with a mortgage the last few years has a dollar short that is far more valuable than the home itself. They'll be fine

[Lee Root @LeeRoot8]

There is a separate restriction which is why he never buys the last week of the quarter. His auditor does not want him buying btc as a 4% holder and be seen by regulators as trying to influence the quarter close. It's a very conservative procedure typical of any entity that owns an asset in concentration.

[Lee Root @LeeRoot8]

@ColinTCrypto It's not a bear market; it was merely a bearish correction within a long term bull market. We're going parabolic soon

[Lee Root @LeeRoot8]

@RonSwanonson They were about 2.5% of btc volume today. That doesn’t move markets much, but when they double to 5% of daily volume, their otc buys will absolutely move the mkt.

[Lee Root @LeeRoot8]

@Mgly1992 @saylor Simply to buy a btc-backed pension for retirement paying monthly tax free income and an 11.5% annual raise (provided you re-invest the dividends)

[Lee Root @LeeRoot8]

@LukeMikic21 He's exceeding triple btc supply today. strc atm was ~42% of last week's trading volume. Therefore he's bought 1,452 btc with today's volume thus far which is 3.2X daily supply.

[Lee Root @LeeRoot8]

@BitPaine There ma be a one month period they add 100k btc. I’m hoping they’re in the process of adding 20k this week alone/

[Lee Root @LeeRoot8]

@critterdude @ZynxBTC Even if it carries no premium forevermore, you accrue (a lot) more btc per share over time in mstr common. Whereas you lose 25 bps per year of btc in ibit.

[Lee Root @LeeRoot8]

That's $2 billion in 2025 btc that they need to pay $200 million (10%) in equity atm to service forevermore which =$1.8 billion first year performance. 10 years from now that's ~$20 billion that they've collectively paid $2 billion to service for an $18 billion gain for common. All because saylor was atm'ing prefs for nothing way back in 2025. And that does not account for what the other $75 billion of btc they currently own is worth 10 years from now.

[Lee Root @LeeRoot8]

@AnalogKid70 @BitPaine @DavidKamnitzer The investment would be taxed as a long term capital gain or loss (depending on the outcome) with zero cost basis.

[Lee Root @LeeRoot8]

@BitPaine @DavidKamnitzer Once your cost basis has been reduced to zero from dividends, every subsequent distribution is taxed as short term gains. Therefore this arb works on ~10 year paper or less given the 10.25% dividend.

[Lee Root @LeeRoot8]

@dotkrueger mstr mnav will return to that range post supply crunch with a large scarcity premium assigned to it and any discussion of mnav valuation will be rear view mirror.

[Lee Root @LeeRoot8]

@TheBTCTherapist That it continuously launches then consolidates, launches even higher then consolidates. Looks to me like our current consolidation is getting long in the tooth