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Question I'm asking myself today:

What is the value of $STRK?

It appears to be a double-edged sword. Bonds perform well in deflation and Bitcoin exposure performs well in inflation.

For $1000 in $STRK, that equals exposure to 1 $MSTR share plus 8% of $1000 per year.

If the market pushes yield to 4% rate, the value of the $1000 of $STRK goes to $2000 and plus the built-in MSTR stock could be worth another $1000, $2000, $3000.

So looking at

$1000 bear + $80 dividend on all cases.

$2000 realistic

$3000 mild bullish

$10,000 mega bullish.

The alternative would be to buy ~2.7 stocks at today's price.

Which would be worth

$1000 bear + without $80 dividend on all cases.

$2700 realistic

$5400 mild bullish

$27000 mega bullish

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Discussion

Jake Woodhouse 6mo ago

Good question pls detain your thinking more

Keen to learn

gojiberra 6mo ago

Yes. STRK shares seem to be like little diamond watch batteries that last forever. Plus it has a little bit of the nuclear reactor core inside it so you can benefit from the ongoing refinement efforts of strategy.

A hybrid yield instrument that yields both dollar dividend and BTC gain to the share.

gojiberra 6mo ago

I think I recycled this idea from Adam Livingston

gojiberra 6mo ago

That $80 dividend per year also means this bond(10) pays for itself after just 12.5 years.

Seems like a solid PE ratio !

Plus 10($1000) offers the exposure to 1 share MSTR, effectively Bitcoin real estate.

A cash flowing Bitcoin hotel that we can buy for our Monopoly boards (aka portfolio).

BTC yield accrual of 19.2% YTD to share

gojiberra 6mo ago

The yearly rent at the last place I rented would have paid for the property value in just

24 years.

So STRK is like rental real estate that has Bitcoin appreciation instead of property appreciation.

gojiberra 6mo ago

If my landlady sold the apartment out from under me to buy STRK, she could earn twice what she charges me in rent. Plus the Bitcoin appreciation. And pay no property tax and maintenance people.