YieldMax. You can find the prospectus and relevant docs on their website. There isn’t much good quality content on youtube or podcasts. It’s a pretty niche space. The strategy is simple, at a high level they monetize MSTRs volatility by selling call options and passing down the premium and profits to the shareholders via monthly distributions.
I would listen to the last episode of MSTR True North with Jeff Park. He touched on MSTY and the product Bitwise launched (IMST) that is a MSTY competitor and he is managing. There is a space on Bitwise’s C account from a week ago where they touch on this as well.
There is some nuance, but based on the numbers MSTY has done better than selling bitcoin monthly for income
Yeah that’s how I view it too for the most part.
Money
Buy media, entertainment, and blackmail. Epstein wasn’t the first or the last
Bitcoin is money. You save in it to remove future uncertainty so you can plan long term.
MSTR is an invest. You use it to advance a company you believe in by risking savings im exchange for potential return on capital
MSTY is an income vehicle. You use it to generate income to pay for expenses so you don’t have to sell your savings or investments.
https://x.com/bariksis/status/1911660083169186033
Choose the right tool for the job
I’m referring to the index. We are not in a bear market
Right, great things are hard to achieve like having a good family. I still think having a mediocre family is worth having if the alternative is having no family. I get what you mean tho
Culturally we need to bring back the desire to be exceptional without the fiat corner cutting hustle mentality
True when it comes to accomplishing great things, or being exceptional. There are lots of things worth having like a family that aren’t necessarily hard to get. Being healthy can be easy if you had a decent upbringing with hole cooked meals. Being jacked, lean, and healthy is very hard.
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.
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
Same
Not that I know of, but I should start tagging my notes to see who else on NOSTR is interested in MSTR and the covered calls and leveraged funds
I’m very bullish on Jeff Park. I’ve owned MSTY before, but I think IMST might have a slightly better total return even if their distributions are smaller than MSTY’s.
Listen to the last episode of MSTR True North. Lots of signal on this topic.
The upside is having more bitcoin at the end of the day.
It takes a minute to wrap your head around MSTR and funds that generate income by selling covered calls on MSTR, but the data is crystal clear so far. Not saying everyone needs to do this, but you also can’t ignore the performance and benefits these type of products offer.
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.
More or less
If you run the numbers since MSTY came out you can see the drastic difference.
If you had bought MSTY when it came out and you had bought bitcoin with the distributions you would have recovered your opportunity cost in bitcoin terms within a year I believe. I’m not saying MSTY and similar products will have amazing dividends in perpetuity, but they are most certainly worth taking a look if you’re selling bitcoin to pay for stuff.