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21 sats \ 2 replies \ @Undisciplined 8 Jun \ parent \ on: Shorting Strategy's Strategy (Bloomberg, Money Stuff, Matt Levine) econ
Right, and, obviously, a belief that the asset of the bitcoin will more than offset the liability of the loan.
Yes, and Saylors magic box doesn't just increase debt. Its a sea-saw. When NAV is >2 he issues shares.....when NAV is <2 he issues debt.
Last I checked his debt load was only about ~25% of his NAV, plus his debt is zero coupon and expires in 3-5 years. So in theory Bitcoin price could fall to $25K and stay there for the next 3-5 years before he had a problem.
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My understanding, too. It's remarkably safe... ish, since the preferred stocks don't work like that. Though, those he can decide against paying at any time
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