What would be the reasons to own #MSTR vs #FBTC in tax-advantaged accounts (ROTH IRA, 401k, HSA) that hold some form of paper #Bitcoin?
#asknostr
Discussion
If you believe that over the long term the company can outperform its underlying treasury asset.
volatility might be 1, off the top of my head, I just do longer form trading these days & left the greeks & writing options
can't you hold physical btc with unchained or something?
You can, but some may want to hedge human error by having retirement account funds in a btc etf.
what human error?
Loss of private key material, etc
Holding your own keys is not without risks, especially when inheritance planning is involved
The people being onboarded these days and moving forward are not all technically competent. An ETF product is best for some.
I also am currently getting a company match on 401k, and am practically forced to have an HSA rn. Looked into unchained and doesn't solve my issues at this time while I'm a wagie
Your company sponsored 401k lets you buy MSTR of ETFs?
Either. I elected to self direct, currently entirely in FBTC but debating making the switch to MSTR. Just don't want it to be an emotional decision
Must be nice haha
Yeah I get it. You’ll just have to decided if you think the MNAV is lower or higher than what you think it should be.
For real lol. Perks of having Fidelity as the brokerage my company uses
Mine uses Fidelity as well, but I can’t select individual stocks or ETFs of any kind.
Same for my sisters Fidelity sponsored 401K. Fucking criminals. They only allow those gay yearly managed funds. Pick a year, trust us.
FUCK YOU. 401Ks are a scam. Better to quit the job, transfer to a self managed IRA & then get rehired & opt out of doing the 401K going forward.
Basically what I did
It really is the smartest play.
My sister is old school though. And thinks it will be disloyal. Not a winnable argument for me.
I had those options only as well + some others, but there is a last option that is 'Brokerage' something that I had to select and jump through some hoops to do.
Feel free to dm for more details or any help needed
The company you work for has to allow it. Hers does not. I know the “brokerage” option & went down that road. Not an option.
Are you sure you can't self direct? I had to jump through some hoops but was able to get it setup. Feel free to DM me to link up over signal to talk more details
Yeah, I’m sure. I called Fidelity multiple times, lol. My company is lame like that. You can jump through some hoops to gain access to mutual funds, but that’s not any better than what you can do already.
you made it sound like people who already hold btc benefit from an etf in retirement account because they don’t need to handle keys. this reasoning works for different people, not the same ones
I meant that as well.
Some people are more prone to losing private key material, but anyone can lose it or have it stolen. So anyone can use an ETF product as a hedge against that risk.
- MSTR is an operating company
- MSTR can leverage cheap debt to increase btc/share
- There’s no fee to hold MSTR
- You have access to options trading
MSTR is a company that trades at a multiple or a premium to its underlying BTC holdings.
Currently one share of MSTR trades at $330. The current value of the BTC held by MSTR per share is $150. People refer to this difference as the NAV premium or the premium you are paying for a share over the Net Asset Value. Currently this premium is at 2.2x.
The bear case for MSTR is that over time the NAV premium will trend towards 1x. Meaning that the stock will trade without a premium over the BTC held per share.
The bull case is that the NAV premium will increase. Meaning that MSTR will outperform bitcoin. It has previously traded at a premium of over 3x so even a return to this would mean you have outperformed just holding BTC. Some bulls predict much higher premiums if MSTR was to be valued based on its earnings vs just being valued based on BTC holdings.
Another reason to hold MSTR is that as they purchase more your BTC per share will increase. MSTR refers to this as the bitcoin yeild. The year to date bitcoin yeild has been 73%.
you can find a lot of info and track all these metrics at. https://www.mstr-tracker.com/
At the end of the day it comes down to your belief that either the bitcoin held per share will grow sufficiently such that it compensates for a reduction in NAV premium or that you believe the NAV premium will trade higher in the future.