⚡️🚨 NEW - Strategy's market capitalization falls below the value of its Bitcoin holdings.
Discussion
Cool!
Makes no sense
Why? It's being shorted beyond that mark as the people shorting or believe the BTC in USD value is gonna go lower. It's an aggressive trade that sees bigger downside risk for long BTC exposure.
If you have 100k usd in your bank, you go to a shop and try to buy a 90k car and they deny the payment
No sense
MSTR has liabilities, BTC does not.
BTC is 24/7 and MSTR is 9:30-4 M-F makes a difference
Only right as it was much much much more than its holdings for years.
Yeah, this makes more sense, as them acting as a holding company actually adds risk over self-custody, and there's no way that their software department beats Bitcoin's returns. I don't understand how they could be worth more than their Bitcoin.
Some entities can't buy Bitcoin directly but they can buy equities.
The premium also reflects their ability to increase sats per share. A normal company's future projected earnings are incorporated into their stock price.
You're right, owning MSTR adds third party risk over Bitcoin in cold storage. It also adds the potential to increase the fiat denominated return beyond holding straight Bitcoin. It's essentially leveraged Bitcoin with much less risk of liquidation.
I find MSTR very interesting but I wouldn't sell Bitcoin to buy MSTR. To me, it looks like much of the volatility has shifted to these Bitcoin derivatives. I think MSTR will play a big role in consolidating Bitcoin's price & then taking it a level higher. $150k this year is still in play IMO.
How is it possible?
From a fiat returns stance is this like getting MSTR at 2022 values ?
Was Saylor right about Bitcoin years before his stock was rewarded for being right ?
It could be he had his moment, peaked, and it’s going to be downhill from here.
It could also be that he is correct about digital finance and this is the discount before the floodgates open.
There was a time gbtc traded at a discount to the value of its bitcoin holdings and it just seemed so obvious that 1) it would eventually ETF and 2) when it did that discount would instantly evaporate and buyers at that discount got hugely rewarded. While they waited they paid a relatively large expense ratio to own discounted btc and had to wonder if they were nuts for seeing the obvious inevitability on the horizon, or if gbtc had lost the coins, etc etc
Maybe this is similar as Saylor waits for trapped capital to flow into preferred.
Maybe MSTR here will be remembered as the last and most obvious discount
Or maybe it will all fizzle out under his preferred mountains of debt.
You’re a sick pedophile. People will learn the truth about you eventually.
