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Replying to Avatar Moon

So serious question here.

I understand that MSTR has enough bitcoin to ultra cover its outstanding debt.

I also understand that MSTR is basically bitcoin volatility and dividend yield products wrapped around an unprofitable zombie software operating company.

SO - if MSTR is paying dividends on its derivative products (STRD, STRK, STRF) but MSTR is not selling Bitcoin and the operating company is unprofitable - WHERE DOES THE YEILD COME FROM TO PAY THE DIVIDENDS?

I ask people who are experts in traditional finance (and who are in MSTR or its circle of direct products / side products) to explain this to me in clear and simple English and the response I keep getting is “It’s too complicated, you wouldn’t understand”

Experience has taught me that this a very strong indicator of bullshit being afoot but perhaps I am missing something…

#plebchain #asknostr

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SuiGenerisJohn 5mo ago

The company is profitable, at launch of the strategy it was netting like $70M/year recent reported losses were probably mostly due to former accounting practices. That said, I imagine some of the yield will get paid by portions of the sale of the securities and probably primarily from the ATM sales of regular stock. I think they may have covered this in a quarterly video report, and likely do in the SEC filings, but that would be a slog to read.

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