I can not get a good answer to this on X., what am I missing?
MSTR stock holders, Question:
Would you rather
A) your stock trade at a high multiple of the Bitcoin treasury
or
B) would you rather your share represent more Bitcoin per share?
If your answer is A) why would you buy the equity if you know they are going to sell more of it if the multiple rises.
If your answer is B) why not just buy bitcoin, there is no multiple.
I’m a stock holder for a while and still have a healthy position.
To me it’s just like opening a leveraged bitcoin futures position but you can’t get liquidated like if I was to trade a 4x leveraged bitcoin futures position. So you have the upside without as much downside risk lose your entire margin. And I even put about 20% of the position into MSTU which is a 2x MSTR etf.
That makes sense, thanks
I’d say be careful owning MSTU for extended periods of time - the slippage could really hurt after an extended period of choppiness up and down. Matthew Kratter covered this well in a recent video.
Yea I reduced my position a lot after this last rally. It’s definitely a swing trade for me not a long term position.
It can do both at the same time, they aren’t mutually exclusive.
I think B) is the relevant one for me. And it’s their ability to continually tap the capital markets and increase this which is compelling. Of course that also inevitably leads to A), but that’s not an explicit target - I reckon watching the q3 earnings call and the Bitcoin principles slide is highly useful here.
Of course the golden question will be - at what level of A) does it all get too bullish and toppy versus simply owning the bitcoin?!
