Fartface 2000 is right
Discussion
I'm all for lightning and mints and ecash or whatever replacing traditional banking.
However I'm not convinced yet that all that tech works at scale.
I have no idea how this works out, but it seems to me that for current banks to survive they will need their own Bitcoin strategy or sell to MSTR to get on the new financial network. And maybe it's just a temporary hybrid centralized implementation of Bitcoin, but it could last long enough to make high MNAV well worth it.
so i think MSTR MNAV works because there are examples in nature of what appear to be "perpetual motion" that are just taking advantage of certain characteristics like:
ram hydraulic pump
by using a siphon and periodically restricting the flow, it's possible to pump water uphill while a lot more water falls lower down hill.
since a lot of capital is happy with a much lower performance than bitcoin in their MSTR convertible bond exposure, they are the water falling farther down hill and in turn they pushing a small volume of water (aka Bitcoin per share) farther up the hill into the hands of the shareholders.
It's not a bad way to get Bitcoin price exposure for funds trapped in the fiat system.
Is it better than an ETF? Maybe 2x better right now but probably not 3x better. It really depends on how high you think the premium will be allowed to go.
It's a fiat instrument & will also probably move to a discount at some point.
FAFO
Love it
It makes sense if you are restricted by a covenant that only allows you to buy equities. The multiple can’t last, why would anyone who is not restricted by a covenant give Saylor 2-3x to buy bitcoin for them?
He can only accrete to the shareholders if another actor is willing to pay more than what the stock is worth. If MSTR operation doesn’t lose money, it’s worth 1:1, if they could make money and buy bitcoin maybe it’s worth more looking forward.
That's the thing. There's so much fiat that's essentially forced to invest in stocks. That premium could go well into the double digits.
This thing is going to be epic to watch unfold.
