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I have finally figured what MSTR is doing: demonetizing the stock market.

Say what?

You see, most of the value of stocks is in the future. That’s what a PE of 20 means (95% of value is future value). WTF is a PE of 20 if not a store of value? Stocks have acquired a store of value premium. This is a money function being transferred to stocks.

MSTR is taking the savings aspect of stock holding away at a premium and buying bitcoin instead.

The same thing will happen to art, real estate, bonds, etc.

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Discussion

🍊💊⚡️🌽 1y ago

Game theory will pull every public company into this mix…….

Acquiesce, and do the same thing or be left behind ………

Splintern 1y ago

Exactly. Understanding this helps explain PE ratios under the Gold standard.

sauna 1y ago

As long as the NAV is greater than 1. He can issue shares and buy Bitcoin and the BTC/share goes up.

He’s the first company in history to have shareholders wanting him to dilute their shares. It’s mind boggling.

Maybe that is him harvesting the store of value premium in stocks? Could be.

Dr. Bitcoin, MD 1y ago

That’s exactly what he’s doing. And it explains why the stock still trades at a premium. Shareholders do take a risk of having no btc per share if notes don’t convert.