Replying to Avatar Svoboda

It's probably close to a win-win as one can get. Provided they don't go bankrupt, the investor gets their principle back at worst. If the notes mature, they potentially have a moonshot.

You could also make a case that their Bitcoin holdings is a second insurance policy against bankruptcy so it probably tamps the risk in their eyes even more.
Avatar
๐–‹๐–Ž๐–†๐–™๐–‰๐–Š๐–“๐–Ž๐–Š๐–— (ยฏ`โ—•โ€ฟโ—•ยดยฏ) 1y ago

He's paying them 3% to 4% while bitcoin appreciates in the low 60% per year. Saylor is getting a free roll and if MSTR goes bankrupt, their shares are worth zero anyways.

Reply to this note

Please Login to reply.

Discussion

Avatar
Svoboda 1y ago

Right, but these guys are betting on his play, too. Most have covered calls so they could be making 30-40% on those while they ride it out and they're essentially getting that for free.

At least that is how I saw it explained several months back when people were questioning why people were still buying.

Avatar
๐–‹๐–Ž๐–†๐–™๐–‰๐–Š๐–“๐–Ž๐–Š๐–— (ยฏ`โ—•โ€ฟโ—•ยดยฏ) 1y ago

Covered calls on MSTR?

Avatar
Svoboda 1y ago

Yeah, that is what they were explaining and why the private equity firms continue to buy them up. I'll try to see if I can find the pod it was talked about and if I can, I'll toss it in the thread.