Replying to Avatar DRE

If Bitcoin 5X, then MSTR will 10X and MSTY will ~7X with dividends reinvested.

Anyone that was living off Bitcoin when MSTY came out in February 2024 would have more Bitcoin today if they had put a portion into MSTY than they would if they had sold Bitcoin to pay expenses.

I haven’t updated my spreadsheet looking into this for a couple of months, but with this price action, the numbers will break even more in MSTY’s favor, is my guess.
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El Zeta 9mo ago

Bro the more I look at msty, the more I like it. I could easily buy 1000 shares and create a monthly income of about $3K 🤔

Maybe?

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DRE 9mo ago

I’m telling you. Once the implied volatility of MSTR ramps up, I can see the dividends going back up to $3/share and higher.

Their average distribution is ~$2.42/share, so if you want to average $3k/month you need 1,240 shares worth $24.6k rn

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El Zeta 9mo ago

Bro, heck yeah. I could put 1/2 a coin and let it make me an income 🔥

Is there any downsides to it?

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DRE 9mo ago

Exactly

From the point of view of needing income, the most obvious downside or caveat is that the fund relies on MSTR being a volatile asset and them growing. But if you’re bullish on Bitcoin, then it’s easy to be bullish on MSTR and MSTY/IMST by extension.

The biggest downside is that it will likely underperform MSTR. This matters if you are looking at this as a long-term investment, but if you use this product for income (as intended), then the trade-off is worth it.