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14 sats \ 3 replies \ @byzantine 13h \ on: The Bitcoin Treasury Trade Unravels (Bloomberg Money Stuff, Matt Levine) econ
if mstr trades at 1.25 nav it means shares could have 25% more btc than start of your purchase price. this year saylor has done just that. it is hopium to assume it grows faster than that seeing he has a 10% drag on the stock with selling shares to pay preferred dividends.
i think a 1.5 nav would be wild since at size it it really hard to grow year over year at 50%
no, at 1.25 mNAV Strategy is roughly a proxy for bitcoin exposure (the prefs and converts act as low-level leverage).
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am i wrong in my math? paying a 25% premium means an expectation that you think you will get back 25% at some future date?
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yes, that's wrong.
And also not what I was saying.
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