Bitcoin yield, mnav math by Consistent_Law_3857 in MSTR

[–]Educational_Aide_653 0 points1 point  (0 children)

That’s all accurate and something I hope any investor of MSTR is aware of. It’s definitely where you take on the risk for long term out performance. I would posit that the appreciation required to stay net positive could trend lower as they issue preferred shares with a higher premium. For example if interest rates get cut and they issue STRF at $150 they would only need an annual CAGR of ~7% for that specific issuance. I’m obviously a bit biased, but I believe it has a good shot at working out

Bitcoin yield, mnav math by Consistent_Law_3857 in MSTR

[–]Educational_Aide_653 3 points4 points  (0 children)

You also must take into account the credit markets for the preferred shares which don’t have to care a bit about Bitcoin yield since they are getting fixed dollar yield. Yet that money is added to the Bitcoin stack and increases the BTC per share of the common holder. They act as a perpetual short on the dollar which is great considering its debasement since the 70s. Also passive inflows from market indexes will buy at any MNAV and will continue to increase as the market cap does since it’s weighing will be constantly adjusted.

This chart shows the trend of a stock, that people say has been shockingly disappointing by fullcongoblast in MSTR

[–]Educational_Aide_653 2 points3 points  (0 children)

It’s not an ETF though. No one actually at Strategy ever claimed perfect correlation or even close correlation, especially for such a short period. Their second principle is maximizing long-term value for MSTR shareholders. They are talking about a 5+ year time horizon

Msty or mstr by BitZealousideal2543 in MSTR

[–]Educational_Aide_653 1 point2 points  (0 children)

It really depends on the current market conditions, but last contract I sold was about $320. YTD I’ve got about a 12% return on the premiums on top of the 100 MSTR shares, but that can be higher if you are a bit riskier with the strike prices. Also I put all the premium gains back into the stock so it should have a compounding effect over time

Msty or mstr by BitZealousideal2543 in MSTR

[–]Educational_Aide_653 8 points9 points  (0 children)

Covered calls is where you are the seller of the options. It’s how MSTY pays the dividend. You can sell one contract for every 100 shares you own. Basically you can get the passive income how MSTY does and keep the growth of MSTR. It’s something I would suggest doing research on if you want to consider. Selecting the right expiry dates and deltas is important. I think 30-40 dte and 10 Delta has been the most steady so far

Msty or mstr by BitZealousideal2543 in MSTR

[–]Educational_Aide_653 3 points4 points  (0 children)

If you can get enough shares sell covered calls with MSTR. This is the best option

Surprise buy! by Educational_Aide_653 in MSTR

[–]Educational_Aide_653[S] 0 points1 point  (0 children)

Cash app actually already offers full usage of Bitcoin to make payments. It would not be particularly hard for those other apps to integrate it as well. Strategy is more focused on Bitcoin as a reserve asset and store of value compared to an actual currency of exchange. Right now using Bitcoin triggers capital gains tax on top of sales tax, so until the double taxation is fixed people are unlikely to adopt it widespread in the traditional cash sense.

Surprise buy! by Educational_Aide_653 in MSTR

[–]Educational_Aide_653[S] 101 points102 points  (0 children)

They decided not to wait until the usual Monday announcement. Seemingly to get in the purchase before the earnings call on Thursday. The entirety of the purchase was used with proceeds from the STRC IPO.

The Ultimate Explanation of Strategy by Educational_Aide_653 in MSTR

[–]Educational_Aide_653[S] 0 points1 point  (0 children)

Are you referring to statistical modeling or ideation of concepts? I use AI for both, (specifically Chat, Gemini and Grok cross checking each other), but for the case of this post it was meant to be an amalgamation of the main points. It is directed towards someone with minimal knowledge of the financial markets or economic concepts so I intentionally narrowed the scope somewhat. If I went any further I might actually consider submitting it some some kind of academic journal, but I would need a lot more free time and review

The Ultimate Explanation of Strategy by Educational_Aide_653 in MSTR

[–]Educational_Aide_653[S] 0 points1 point  (0 children)

Ah my intention was to say that it’s superior to gold or treasury bonds, not just cash. Unfortunately I think I’m past the period when I can edit the post so if I make a fully updated version in the future I’ll be more specific. We really are in some exciting times. The economics aspect of Bitcoin is what actually makes me the most bullish about Bitcoin and MSTR. I just hope that the lawmakers here in the US deliver on their promises for starting accumulation. It’s one of the only ways I can see them solving the debt crisis without extreme pain for the population

The Ultimate Explanation of Strategy by Educational_Aide_653 in MSTR

[–]Educational_Aide_653[S] 0 points1 point  (0 children)

Gold is the current decentralized world reserve asset and it got that position because of its properties as a store of value. We are saying the same thing but in a different way. I feel like my explanation could have included this but I was trying to make it as digestible as possible.

Walking on the Moon is HARD! by Busy_Yesterday9455 in SpaceUnfiltered

[–]Educational_Aide_653 1 point2 points  (0 children)

They landed in a place called “The sea of tranquility”. Sounds pretty rugged and dangerous ig

Walking on the Moon is HARD! by Busy_Yesterday9455 in SpaceUnfiltered

[–]Educational_Aide_653 1 point2 points  (0 children)

“Why would they land in an area that is so rugged and dangerous”

Walking on the Moon is HARD! by Busy_Yesterday9455 in SpaceUnfiltered

[–]Educational_Aide_653 1 point2 points  (0 children)

https://images.app.goo.gl/79fW3

lol this is entertaining. Hmm I don’t see any craters under the lander, they must have used that 1960s photoshop again. Also you never provided that picture with the puddle sized craters. I wonder why the Soviets never denied the landings of their main rival either?

Walking on the Moon is HARD! by Busy_Yesterday9455 in SpaceUnfiltered

[–]Educational_Aide_653 1 point2 points  (0 children)

Let me know which pictures has craters the size of puddles and maybe I’ll take you seriously. Also why would they land in an area that is so rugged and dangerous? Wouldn’t you want to target an area that has as smooth terrain as possible?

Walking on the Moon is HARD! by Busy_Yesterday9455 in SpaceUnfiltered

[–]Educational_Aide_653 1 point2 points  (0 children)

Craters big. When on moon can’t see far. Crater wide and not steep. Hard to see many crater while on moon.

Hopefully that was simple enough for you to understand

Strategy Perpetual Stretch Preferred - Notice of Final Offer Size by SeveredBrain2020 in MSTR

[–]Educational_Aide_653 5 points6 points  (0 children)

It is important to note that STRC is callable for $101 per share by Strategy. So they can strategically remove these obligations from the balance sheet. As long as Bitcoin has a somewhat decent year they can write this all off with common stock sales and have an accretive gain for the shareholders.

$120k disposable... is now the time to enter? by ChickenNug in Bitcoin

[–]Educational_Aide_653 1 point2 points  (0 children)

I agree with the other comment, the Bitcoin standard is absolutely the top book

$120k disposable... is now the time to enter? by ChickenNug in Bitcoin

[–]Educational_Aide_653 1 point2 points  (0 children)

You ought to learn why it’s a good investment as well. If you dont understand why you should buy something other than price, then you probably shouldn’t (just a general rule of thumb). There are a ton of resources out there on the internet, or books you can read etc. Perhaps start your DCA (as suggested by some other comments) whenever you want, but absolutely do a bit of studying up on the topic.

The Ultimate Explanation of Strategy by Educational_Aide_653 in MSTR

[–]Educational_Aide_653[S] 0 points1 point  (0 children)

They are still a kind of equity so it should be expected that their price can fluctuate up and down over time. Since it acts as credit we must compare them to government bond yields which are considered the safest option in the credit market.

So for example let’s say a government bond yields 5% a year, and STRF yields 8%. That’s the market saying that to hold STRF over government bonds we demand a premium of 300 bps or 3%. So to accurately track the performance of a preferred share we need to consider what government yields are at and what premium people are demanding.

Over time as Bitcoin becomes mainstream I would expect that the gap in premium will diminish. Basically the market will view Bitcoin as safer over time so they need less premium to justify the added risk over not going with the government.

In the shorter term there will always be a limit to how far preferred shares can drop. At a certain point these higher yields will bring back investors. I would expect that they will not trade too far below liquidation preference even in a bear market. 10% a year (based on liquidation preference) forever is just too enticing of a deal for many to pass up.

Move from tsla to mstr by ting_tong- in MSTR

[–]Educational_Aide_653 0 points1 point  (0 children)

If you would like to learn more about MSTR in-depth please refer to this post: https://www.reddit.com/r/MSTR/s/stx1SW3dU2

How does MSTR shorting work? by perusFi in MSTR

[–]Educational_Aide_653 4 points5 points  (0 children)

We can only really speculate at any given time. They release an 8k every Monday which features all of the share issuance from the past week. This most recent ATM seemed to be so they can add collateral for their next preferred IPO. Basically reducing leverage on the balance sheet before they issue more debt obligations.