We're back to this conundrum:
As I often write around here, right now the US stock market will pay $2 for $1 worth of Bitcoin. This is most famously demonstrated by MicroStrategy Inc. (or just Strategy), a company with a $60 billion pot of Bitcoins and a $118 billion equity market capitalization
So, what to do about it? We can shoooort it, i.e. betting that the gap will close. Oh, peeps are on it:
if you think “this is weird and there is no good explanation for it,” you can do more than just talk about it. You can do something about it: You can bet that, if it’s weird and there is no good explanation for it, it has to stop. Specifically, you can buy $2 worth of actual Bitcoin and short $2 worth of Bitcoin treasury company stock.
It's a "famous widowmaker trade"!
On the other hand tons of other companies really are doing a related trade — selling their stock at a premium to buy Bitcoin — and maybe that will bring down the premium for everyone. Or maybe not. This whole thing is weird and I have no good explanation for it, which means that I have no good intuition for when it will stop.
Will Chanos make it out alive?!
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