MSTR

HSuke

Technically, MSTR is already 3 grades below junk bond rating. And 11.5% for STRC is already above the typical 8-10% interest rate that junk bonds give. So it's already being priced worse than a junk bond, and people STILL aren't buying enough of it to keep its price steady.

Nice_Category

If he raises the dividend, then it benefits me. If the price goes up without him raising the dividend, then that benefits me (who has a cost basis under $100). If the price increases above $100 and he dilutes the shares to buy more Bitcoin for Strategy, that also benefits me as a Bitcoin holder and a MSTR holder. The only scenario that doesn't benefit me is if the company goes belly up. Which I don't think will happen.

LargeSnorlax

Reddit (and especially /r/cryptocurrency) was overrun in 2020 by wallstreetbets posters. It became cool and hip to gamble irresponsibly because everyone was making money left, right and center. After the bear, none of those guys had any idea whatsoever about the space. They never looked at what they were buying, never had any idea how to make a transaction or even what the fuck Bitcoin was - They never had any need to have decentralized money, hell, their *entire identity was gambling with the most centralized money in the world*, the stock exchange. So a bunch of them quit. Became Buttcoiners. Buttcoin got the biggest population increase ever after FTX and the regular posters there today are people who bought the hottest garbage when FTX collapsed and have been calling crypto a scam because they suck at investing. Queue 2024 and Saylor. In 2024 MSTR started buying up Bitcoin wildly. A new cycle of noobs came in, buying MSTR at $300-$400 and causing 6 new Bitcoin all time highs in 2025. So you've got a whole fresh batch of institutional money who thinks they're going to be rich and think that Crypto is exactly like stocks and Saylor is a genius. And once again, just like clockwork, the cycle hits. Bitcoin goes down. MSTR goes down. WSB posters lose their shirts. What's funnier, is this is happening in the middle of one of the frothiest bubbles the stock market has ever seen, and all these clueless folks see that they could've invested in X or Y or Z and made it rich or whatever hindsight reality they've made up. Now we're back in another bear and the people who are here are people who have lost a TON of money, because they didn't do any research into the space whatsoever. None of them have any use for Bitcoin and I doubt 1/100 people who bought Bitcoin in the last run even know how to do a bitcoin transaction, let alone self custody it, which is the *entire point of owning Bitcoin in the first place*. So we're back in the same repeating situation - Before they go and join Buttcoin, the people who lost their shirts have to cope post about how crypto is a scam (obviously, because it didn't go up when they bought it) and how Quantum is going to make it obsolete or how no one uses it. It's all the same arguments, over and over again, every single time. Crypto is a space where to survive, let alone make profit, you actually have to know what you're doing. You're going to see the same sheep get slaughtered over and over again. They'll never listen to advice or to not go near frothy tops or to actually be involved in the space you're trying to make money from, but you'll sure hear from them nonstop when they pull the lever and the machine doesn't spit out coins.

ftball21

UST was backed by LUNA STRC is backed by MSTR/BTC Not even close to the same

Alone_Round_591

The scale comparison here is pretty frightening when you lay it out like that. If MSTR starts unwinding, there is no circuit breaker big enough to stop the cascade through all the ETF exposure alone.

fan_of_hakiksexydays

STRC and MSTR could be much larger than Luna and FTX combined. MSTR owns 4% of the total supply of BTC (over 840K BTC). Luna owned one tenth of that (about 80K). FTX owned 0. Customers had a total of around 100K BTC entangled during the downfall. Plus, an MSTR fall would have a ripple effect into other funds, custodial markets, and ETFs.

Foreigntragedy

Ive been saying that it needs to get delisted for a while now. MSTR is an absolute joke

ProfitableCheetah

Polymarket needs to spot this bs. They fked over a guy for $500k just a few weeks ago on the "Will MSTR sell any Bitcoin". They sold, but the UMA whales said NO and the market resolved as NO... It's insane to me that people still place bets on this trash tbh

user_name_checks_out

> How is this NOT the exact same playbook playing out like MSTR? How is "controlling" or adding Bitcoin to one's balance sheet helping anybody get to 21million? I am so confused by y'all. Tell me that you have not bothered to make the slightest effort to understand how bitcoin works without telling me that bla bla bla

Meto_Kaiba

How is this NOT the exact same playbook playing out like MSTR? How is "controlling" or adding Bitcoin to one's balance sheet helping anybody get to 21million? I am so confused by y'all.

Pegasis69

It's a terrible Idea! That said, I did this a few years ago to buy MSTR. My £10k loan is currently worth £50k and at one point it was worth £140k (I should have sold some lol) But... 1 year ago, I thought, "I should do that same thing again.". I took out a £15k loan which went up to £20k with the (fixed) interest. I've managed to pay off £10k already, but the stocks I invested in are currently worth about £6k. I'm now paying so much money towards the loan that I took out to buy when prices where high, that I don't have extra cash to buy now the prices are low. so the stocks I paid £15k for 1 year ago could now be bought for just £6k... Maybe I should take out another loan 🤔 There's probably a lesson in there somewhere, but I'll leave it for someone else to figure out. Godspeed!

RevengeRabbit00

They’re not borrowing money, they’re issuing shares of MSTR and or STRC. There is no margin call or risk of liquidation. Not sure why people keep on saying this without looking into it for even 10 minutes. The assumption that Saylor is just walking into a bank to borrow billions of dollars at x interest rate is ridiculous at this point.

tap_the_glass

So Saylor? MSTR almost owns 1 in every 21 BTC that will ever exist

AutoModerator

Post is by: DemetherDefi and the url/text [ ](https://goo.gl/GP6ppk)is: /r/DerivativeIncomeETFs/comments/1u70prf/are_you_guys_earning_yield_on_stocks/ Been wondering this lately: For stocks that don't really pay dividends (or pay very little), how are you guys generating yield from them? Especially those heavily mentioned ones like: * TSLA * CRCL * NVDA * MSTR * GOOGL * HOOD * SPY * QQQ Are you selling covered calls, lending shares, using margin, tokenized stocks, DeFi strategies, or just holding and focusing on price appreciation? I'm especially curious whether anyone here is earning meaningful yield on these positions without giving up too much upside. Do share what's actually working for you? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoMarkets) if you have any questions or concerns.*

zmagickz

No one can predict the future but 44k seems like a more than reasonable floor with a dampened ATH and cycle low The only way I see it going lower than this is if MSTR was forced to dump BTC or if AI has another strong 12-18 months. It is the shiny object right now

Intellect5

what is the relation from STRC to MSTR? another way to leverage? sorry im new

Spencer_Bob_Sue

This is the biggest concern actually. If MSTR dumps it won't only be a bad thing for the price but also the sentiment.

_Stylite

Ok but the price of bitcoin is tied to MSTR, and that matters. If MSTR goes under and dumps their BTC it’s an existential threat for investment in bitcoin.

CapitalIncome845

It sounds like you prefer to buy high sell low. STRC is targeted to trade around par, $100. Getting it 5% under par is a great deal. MSTR is down a lot for two reasons - it was trading at a higher multiple, and - bitcoin is down 50%. If you think bitcoin is going to keep going down, it's a bad buy. If you think bouncing around the 200wma is a good entry point (many do), then mstr is a good buy at this point.

I-always-argue

That's almost as useless as saying "from the bank". My point is who's investing with STRC under 100 and MSTR being worth a quarter of it's ATH 

CapitalIncome845

MSTR and ASST are happy to pay 12-13% forever to use people's money to buy bitcoin. Any money you can get for less is a good deal.

BigDiperEruption

STRC is under 100$ for a while now. They can't get money out of STRC if it's under par. It had to be MSTR atm.

blaggerbly

The money doesn’t come from borrowing mate, ignore the noise. He sells shares at the market (ATM) he sells common stock MSTR and a preferred equity STRC to anybody who can buy it He takes the proceeds and buys bitcoin His liability on MSTR is nowt, his liability on STRC is a twice monthly dividend It can quite literally go on forever as long as people keep buying his products and Bitcoin goes up like 2% a year for ever. 🤷‍♂️ The only issue is Bitcoin drops to $25k - at that point MSTR would be as good as worthless but there’s no call on the Bitcoin whatsoever. It’s fascinating - But I don’t know if either are a good buy

ahhhaccountname

Probably the money put money into STRC and from MSTR share sells

RevolutionaryTask452

And yet, both MSTR share and BTC went up , so i guess someone knew what he was doing...

NobodyImportant13

The answer is convertible bonds. Google them. Banks view them as basically risk free because they have the upside of equity (in this case the upside of BTC because MSTR is a proxy for holding BTC) and their downside risk is offset by shorting BTC.

HSuke

If you create a treasury for MSTR, I'll create a treasury of your treasury and a complementary (Return of Capital) dividend asset. Designed identically to STRC, the dividend asset has a par of 100%. If it goes above 100%, I profit and ATM it. If it goes below 100%, then I do nothing and the market decides the lower bound.

HSuke

Because they don't buy with cash. They buy after selling MSTR shares. And guess what dropped even lower than BTC?

Prestigious-Ad-7927

IBIT moves with BTC. MSTR is 1.4X BTC. In adddition, bid/askspread is tighter on IBIT vs bitcoin. Plus, I can sell weekly covered calls and puts to generate premium which is used to buy more IBIT and MSTR.

gigasawblade

He paid with shares, so BTC price in USD is completely irrelevant. He also dumped the price of MSTR shares and then sold them at lowest to fill USD reserve, doesn't sound like such a great move to me

Lefties_TheWorst7331

Look into how equities, specifically MSTR works and you have your answer..

Yoloballsdeep

Lol, only clowns buy $MSTR. Clowns diluting clowns

Selmemasts

Let’s assume I’m being fooled. Why would they sell such a small amount only to buy it back the next week and then some? Why would they say it’s because of their rating isn’t that misleading to investors? At this level when the rating agencies have to tailor a rating for MSTR, I believe it’s all about weighing the risk on paper and get as much data to support the risk management as possible. Maybe MSTR sold some coins to show the agency that the market wouldn’t crash and they burnt them selves hard instead. That would mean MSTR will do it again until the results change. That’s what I believe and the future will tell

Prestigious-Ad-7927

I was a non-believer less than 2 years ago. I am now, what I consider to be a maxi. Besides my house, everything I have is in IBIT, MSTR, STRC or ASTS. 5-10 years is a good amount of holding time and I plan to hold at least for that long and hopefully never sell.

Alive-Yak9875

Exactly, I think we agree: ""He is in a very uncomfortable position now. **New MSTR issuance will not be accretive anymore. It will be dilutive as we saw this morning**, the whole shtick doesn't work anymore. The only way this works is if he can issue more STRC since the debt is "not counted" in the ledger of their "sats per share" accounting. **He can't issue more STRC unless the price goes above 99.** This can happen later in the week once the people show up to arbitrage for the upcoming dividend (record date is 15th June). This will be his one last kick of the can down the road since I don't think it works beyond that time frame and STRC stays low. **The only question is will the market even give him another week (STRC may not crack 99 despite the dividend).** The problem with sats per share metric is that an increase in BTC "price" cannot impact it positively or negatively. So he has dug himself into a hole. He can't just say, "look BTC is up". So now the whole thing relies on this lynchpin called STRC. I wrote about this elsewhere, just search "Instruments like STRC are why events like Black Monday happen." I was surprised when Schiff used the same terminology. Where is my boat in the Bahamas lol..."" [Fit\_Equal6932](https://www.reddit.com/user/Fit_Equal6932/)

Futuristic_Kid

I also went heavy when weekly RSI hit 20 on the November selloff, bought MSTR. I was green for 2 times during the rallies but sold for a loss on the last dump

HSuke

The new part is that both last week's BTC purchase and this one are both dilutive to MSTR value. They're basically decreasing the overall value of the company. More importantly, it goes against the logic of their own new guidelines they released last month. Why the hell are they buying BTC when both their cash reserve is running out AND when it hurts their bottom line to do so because it's a dilution?

HSuke

This company is run by clowns. This is going to be dilutive to MSTR again like the previous purchase. Enterprise mNAV is under 1.22, and they said they were going to sell BTC when it's under. Otherwise, it dilutes the value of the company shares. And the cash reserve is still only 6 months after next Monday's ex-div for STRC, which is going to fall to $94 when it's supposed to be sitting near $100.

MelangeBot

It's funny how the entire world is one google away from learning about Saylor his dot com scam he did with MSTR from 1999 to 2001. His company was one of the first to pop when the dot com bubble exploded. He lost investors billions of dollars back then and everybody could have known that today. Let's face it: most of us in crytpo we kind of want to get scammed.

erpvertsferervrywern

Every 2 weeks, I buy MSTR in my tax sheltered accounts and buy BTC with my leftover funds. My bills are paid. My work has a pension running on my behalf. I live like a total impoverished peasant... But I know one day, someone will inherited an absolute life changing fortune from me. And...... I think that's better than if I ever had the money for myself.

Futuristic_Kid

It is not certain that BTC bottomed  It can get a rally ALONG with tech, and dump at August. Disclosure: I panic sold MSTR at 120. And I don't feel too bad about it. Stonks feel safer. Most people will be cought in it when it tanks again.

badfishbeefcake

I remember that crypro influencer making videos “How to retire on MSTR”. lol

Sacredwisp

There is very little FUD. Quantum is basically a meme, and so is MSTR selling 32 BTC. We've already retraced down the the 200 week moving average like every other bear market and hit several bottom indicators from the prior cycles at only -50%, such as over half the coins being underwater. This range was also the top in 2021, where it acted as resistance for nearly a year, and we spend 8 months accumulating here mid-cycle in 2024. We've also hit bullish divergence on the weekly RSI I believe, like we did on the FTX crash. Other than the % drawdown being lower and the mythology of "it must bottom on October", the technicals are all saying we've either bottomed already, or very close to it. I'm not saying it can't go lower. It absolutely can. I also expect we still have at least several months of chop left before it starts grinding up. That said, expecting it to crash to 50k or lower when sentiment is already shot and sellers are exhausted is wishful thinking unless we get another black swan and stock market crash. This is a fantastic price right now, and I expect we end the year on an uptrend with the next bull market started. Then, all the people who sold and are waiting for 40-50k are going to get sidelined and have to buy in higher again, pushing the market up even more.

hawkeye224

Yeah I like the floor concept (and we’ll see where it ends up after bottom is confirmed), but also I wonder where would it be if not for MSTR constantly buying

Prior_Parsley3960

# Quick Read * A $10,000 investment in MSTU in November 2024 shrank to roughly $561 today, representing a 98% wipeout despite Bitcoin falling only 40%. * MSTR dropped 45% over the same period, but daily-reset compounding transformed that into a 95% one-year decline inside MSTU. * Strategy already uses convertible debt to buy Bitcoin, meaning MSTU buyers hold leverage on top of leverage on top of Bitcoin.

azdcaz

Sure sure what? MSTR sold 32 and bought 1,550 the next week, that’s just an undeniable fact. You referred to MSTR as “he (Saylor)” so I did as well, even though he’s not the CEO and hasn’t been for years.

East_Indication_7816

Did you not look at the chart on my post ? Institutions are gobbling up MSTR

Significant_Grab_173

MSTR becoming the biggest universal bitcoin bank is the event you want to wait for..

GrokM14232

The MSTR trade was always a financing mechanism more than a pure conviction play. Saylor used the equity premium and the convertible bond market to lever BTC exposure at scale, which works well in a reflating environment. The selling, if it is happening, is probably routine within the strategy rather than a signal on BTC itself. What is worth watching is how the convertibles behave if BTC corrects 40% -- that is where the forced unwind dynamic could get interesting. The strategy is essentially a long-duration BTC call with convertible holders providing the financing; the exit costs are embedded in the structure from the start.

WasteFront1988

I think it will too. MSTR can make sense for someone who is seriously long on btc

ReliantToker

No, they have not been borrowing against it for years. Over 90% of the Bitcoin held by MSTR is UNENCUMBERED. They use the ATM offering and sell equity to aquire. They have perpetual preferred instruments offering yields to aquire. They can use convertible notes but have moved away from this as they have effectively tapped the market already. Some remaining notes on the sheet left but less than 1% rate combined with 3+ years to maturity. The leverage ratio is close to 10%. The average S&P is over 50%. The balance sheet is a fortress.

ReliantToker

​It is not a matter of fault, but rather a masterclass in capital markets arbitrage to exploit an archaic framework. If executing a mathematically negligible sale satisfies legacy credit rating requirements and unlocks billions to exponentially increase MSTR's overall BTC Yield, why would any rational investor let semantic pride block mathematical superiority?

outernet9

Conviction is gone. Why would the world's elite let Bitcoin become dominant store of wealth? Why give MSTR who owns 2% of bitcoin so much power? Better investment alternatives in AI.

slacknoise8

Thanks! I screwed up a bit on MSTR but I believe at some point it will run again

HedgehogOk664

MSTR probably, BMNR no

SaeedOrkz

Fair point on MSTR — their size works against them. I'm small capital, nimble. Institutions profit from fees; I profit from movement. Different games.

Evildude66

I'm gonna give my simplified explanation: The pitch used to be: a totally decentralized p2p currency. Then the pitch was that its a store of value. Then the pitch was it was a hedge against inflation. Over time, the pitch changed to say that governments and institutions are buying up large portions of supply, and that its value would increase because supply scarcity. Sure, elements of each of these pitches co-existed throughout... but logic dictates that you can't have a totally decentralized p2p currency while simultaneously having MSTR, ETFs, and governments owning VERY large chunks of supply, and mining concentration dominated by a handful of parties. The dominant pitch of the day will naturally adjust to the interests of those who stand to benefit the most. And at this time, my opinion is that it is NOT the cypherpunks, anarchists, and rebels who were loudest at the beginning. The parties who stand to benefit the most now are the ones who rely on its volatility, not its steady increase of value.

Potential_Duty9709

Because the banks will give them tax free money out on shares of MSTR banks won’t give you shit to hold Bitcoin

SquashDaddy331

When is anyone gonna learn how MSTR actually functions and what their balance sheet looks like? Such a idiotic statement to comment about MsTR when you know nothing about them other then their average price of Bitcoin

_Stylite

Selling 32 BTC is not enough to shift the bid/ask prices on the book like you mentioned. But the price reaction to MSTR selling 32 BTC was real, for a few reasons. 1. Shift in MSTR buying strategy and thus market sentiment shifted for the future of BTC Current BTC prices are largely propped up by MSTR buying and reserve activity. A change from MSTR’s policy of “invest billions and never sell” could signal upcoming weakness at a time when BTC is alreadycweak or underperforming, and many people in the market may be currently at a loss. How do you think these traders react when they see that the largest fund in the world apparently makes a change to their acquisition strategy? They lose trust in MSTR and thus the price of BTC in the future, and take their money out of the investment. Further, **MSTR sold their 32 BTC after acquiring $4B in BTC at a cost basis of around $77.5K each and then promptly rook a 25% loss on this position** Saylor was clearly early with those purchases, and he lost a LOT of money in last few weeks, while displaying huge arrogance. MSTR sitting on massive losses while BTC is weak, with the threat of bankruptcy or more selling in the near future and thus more whifts down in market sentiment suddenly creates high risk for the future of BTC. Few other factors- 2. capital outflows to AI and other assets due to refer. Other assets are doing great while BTC is stuck around a 5 year low. 3. General market instability and precariousness of Iran war and broader market cycle eh broader geopolitical tensions 4. halvening cycle

Far-State-8719

Simple, the market didn’t collapse because of that sale of 32 BTC. Do you not have access to 3/6/9/12 month charts? MSTR started rolling over July ‘25. Hope this helps.

ClearSnakewood

In self custody yes, but there’s too much paper bitcoin out there via Tradfi. Dump your ETF and MSTR and withdraw all your bought Bitcoin into cold storage.

I-always-argue

We didn't have the pressure of MSTR before. If it falls and stays below 60k MSTR is fucked and that can't happen

mercuryy

MSTR was buying every week for years, very disciplined, and they are down overall. Even if that might arguably be the best crypto investment strategy (you could still be down way more), it doesnt look that promising for actual returns.

_Stylite

This is not equivalent to 24hr volume because a giant portion of that is short term or intraday trading that doesn’t usually affect overall stability. It’s just money rotating in and out again much more quickly. There is even HFT activity on BTC inflating the daily volume. Your comment is misleading and MSTR affects BTC price more than its relative volume suggests.

ScutumSobiescianum

BTC is cooked. MSTR is on the cusp of saying goodbye

Original-Season-9941

Saylor selling 32 bitcoin didn't directly tank the price. If the fall in price was linked to Saylor's sale it would have been because traders panicked and sold a lot of bitcoin. Saylor has previously said MSTR will never sell bitcoin, so although his sale was small, the fact that he sold any demonstrates that he is no longer committed to never selling which could be enough to scare traders. Him buying 1000 BTC is not notable to traders because he does that often.

Great-Willingness-57

Strategy is a company who's main goal is to hold BTC. Their vision was to never sell it. Them selling BTC shows that they lost their vision and no longer trust BTC. Therefore that created fear among the market. Other companies buy and sell BTC or stocks for investment. So no alarm if a company (who has other interest and profits) choose to exit the BTC market. Strategy has no other form of income. BTC doesnt give dividends as well. So MSTR had to give out dividends, so the Strategy had to sell some to get the cash flow.

azdcaz

The MSTR implosion risk is heavily overstated

Competitive_Sky_4513

Does DCAing MSTR eft counts??

DaltonDifferent

The market partially collapsed because unemployment numbers were good. That translates to "the fed won't be lowering interest rates" which is bad for the market. When interest rates are low and it's nearly free to borrow money, people borrow money to invest, and the market goes up. Liquidity for the upcoming, big IPOs might be adding to it, but it's not due to MSTR selling a handful of bitcoin.

diamondblaster67

When Michael Saylor / MSTR sells, it’s a signal. Of course, it matters.

Whole_Historian_7185

It matter to holder of MSTR stock. Selling common shares or bitcoin reserves dilutes the bitcoin/share of the common equity. The Strategy board has fiduciary responsiblity to protest it's share holders

Whole_Historian_7185

History will definitely show that bitcoin is bigger that Michael Sayer. Without sustained growth in btc Sayer's STRC flywheel slow down. The last weeks transaction raised some cash and bought 1550 bitcoin. This diluted the btc per share of MSTR. Currently the STRC monthly distribution of aprox ($120M) is a drag on Strategy's liquidity. It will be very interesting to see how the navigate this winter.

Laukess

People keep talking about institutions. The institutions that actually matter are governments and things like pension funds. A lot of the legal roadblocks have been removed and continue to be so. I think this will have a positive impact on the price long term, but we haven't seen much so far. Saying institutional adoption is increasing because MSTR and the ETF are popular seems dishonest to me. MSTR is pretty much an ETF like instrument aimed at retail, and I believe a lot of the ETF's are bought by retail as well. Yes, the both make it easier for institutions to buy bitcoin, but I don't think it's helpful to say institutions has bought 845k bitcoin because retail has bought it through MSTR.

SeriousSamalt2

The panic does feel overblown but the MSTR implosion risk is also on the table so I feel we will be stuck in a bearish market for a while

Seraph_2026

MSTR bought and then it pumped. [Strategy Is Still Buying : r/MSTR](https://www.reddit.com/r/MSTR/comments/1tzb7i7/strategy_is_still_buying/)

Local_Math_5512

It's product performance? What product. It buys BTC. That's the business. MSTR goes up when BTC goes up and it goes down when BTC goes down. STRC is just a credit instrument. This isn't the first time STRC has dipped. It's recovered back to par before and it will recover again. Why are you panicking over volatility that likely won't last the week? Raising the dividend isn't the only option for bringing STRC back to par. MSTR can also buy back STRC if it dips too far. Buying STRC back at a discount reduces liabilities for MSTR and they can always resell once the price trades back at par. STRC is practically a completely new asset class. Digital Credit backed by BTC didn't exist before this year. If you're panicking over short lived VOL than maybe get out now. This product isn't for you.

Popular_Tomorrow_204

So if i buy MSTR Calls, will i be Richer if i bought enough? Leverage on the leaverage on the leaverage has to be enough leverage to get rich, right?

fan_of_hakiksexydays

People always talk about MSTR and STRC being a potential black swan event. But there's actually a lot of other crypto-heavy companies, plus sovereign funds, and crypto heavy funds. There's a lot more defi this time around, crypto lending, and crypto banking that could come under heavy strain. Along with a ton of projects, alt coins, stablecoins, etc... that are taking a huge brunt right now. And all these things aren't isolated in a vaccum. We could see a domino effect of multiple collapses. That's why I don't think this time around the bear market black swan is just gonna be limited to just 3 things like when we had the Luna, FTX, Voyager combo. We could have a much bigger combo this time.

Local_Math_5512

They either sell shares of MSTR when the mNAV is at a premium to the underlying assets or they sell preferred shares through STRC, STRD, STRK, or STRF.

Jolly-Championship31

you nearly described MSTR perfectly in your first statement. except Saylor is central

OwlInteresting3239

One of the most fascinating things to watch are the people who follow MSTR religiously. It's truly a religion: whatever Saylor does, it was genius. The $100M that went towards the cash reserve diluted shareholders and reduced BTC per share. The MSTR subreddit is littered with comments about how only BTC per share matters, but as soon as the metric decreases, they are all silent.

East_Indication_7816

Institutions have been accumulating MSTR . Look at my post image.

Strange_Specific655

Blackrock and MSTR have some of the smartest investors in the world putting 10s of billions into a finite asset to hold long term. Trust some down syndrome kurmongeon on Reddit for financial advice instead of watching institutional adoption happen in front of you.

rollerplank

MSTR and Saylor both are so weird

HSuke

It would be cheap if they had used cash reserves to buy it. Instead, they used up their cash reserves to pay back a 0% loan prematurely last month, and then used more MSTR to buy less BTC.

whetherwhether

MSTR usually buys their BTC early in the week and BTC was crashing all through last week, especially into the weekend.

Own-Huckleberry-1853

**Strategy (MSTR) just bought 1,550 BTC today! If you know you know…**

BakedGoods

they sold $181Mill of MSTR, with that they bought $101Mill of BTC and the rest ($81Mill) + other cash was added to their reserve.

HSuke

How does buying BTC increase their cash reserve at all? It cost them more to buy now than before when MSTR price was much higher.

MrRoidsen

Why someone would invest in MSTR instead of just buying BTC?

Baseidou

Cause with STRC sitting at 93$/share they cannot use it to raise capital, so if they raised capital now it's by issuing more MSTR shares, which means diluting current shareholders

HSuke

> buy cheap Buy expensive. They're buying with MSTR, not cash (and MSTR price dropped harder than BTC price).

jondubb

Assuming it was a move deemed necessary from MSTR's board to show he would sell if needed, orrrrrr he made a bet and the venmo just hit.

zeehkaev

He basically raises it from investors. Literally offers new, freshly minted MSTR (his company) stocks, and invest in BTC. Investors think when bitcoin recovers, MSTR will either grow accordinly or grow more.

wes424

MSTR holders getting diluted

Lefties_TheWorst7331

MSTR doesn't DCA.. that is completely false. They often buy larger amounts when price is high because their assets (BTC) is worth more, therefore allowing them to borrow more money for BTC when it's price is higher.. they don't DCA a fixed amount all year, no.

NobodyImportant13

I don't think it will be catastrophic because the banks *should* be appropriately hedged by shorting a corresponding amount of BTC. MSTR will get slowly bled to death by the interest payments and eventually have to start unwinding BTC over time and/or directly diluting shareholders. But the dilution hasn't happened yet and won't happen for a while, which is what I think confuses a lot of people who have bought into this model.

freexe

But surely that get means MSTR is getting loaded with increasing risk and that failure with be catastrophic if BTC tanks even more.