Nostr

Replying to

Fartface2000

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

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.

2Pac 1y ago

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.

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Discussion

Fartface2000 1y ago

That makes sense, thanks

343PG 1y ago

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.

2Pac 1y ago

Yea I reduced my position a lot after this last rally. It’s definitely a swing trade for me not a long term position.

2Pac 1y ago

But yes you are correct

343PG 1y ago

Yeah for sure, sounds like a good plan.

I’ve not seen them but the daily movements on it must be wild!

2Pac 1y ago

Like 20-30% daily movements during the rally