Why Strategy ($MSTR) is NOT a Bitcoin investment, but a high-risk financial engineering play fueled by leverage, volatility trading, and an 'infinite money glitch' that works - until it doesn’t.
Strategy will offer outsized returns on BTC because of Saylors ability to tap debt markets, and sell new shares - BOTH of which increase the BTC per share…… There is virtually no chance of him having to liquidate with a 48M bag and only 8B in debt - and most of that 8B will convert….. The convert buyers are the ones leveraging volatility, not Saylor - he is selling it…..If you are bullish Btc it seems a little shortsighted to not have some Mstr exposure…What Saylor has done to the Mstr balance sheet the last 4 years is mind blowing.
Strategy will offer outsized returns on BTC because of Saylors ability to tap debt markets, and sell new shares - BOTH of which increase the BTC per share…… There is virtually no chance of him having to liquidate with a 48M bag and only 8B in debt - and most of that 8B will convert….. The convert buyers are the ones leveraging volatility, not Saylor - he is selling it…..If you are bullish Btc it seems a little shortsighted to not have some Mstr exposure…What Saylor has done to the Mstr balance sheet the last 4 years is mind blowing.
Hot takes, I love it!
Very well put together read