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45 sats \ 2 replies \ @grayruby 15h \ on: Strategy’s preferred shares spell out an unfortunate acronym: FCKD lol
Which is what the common holders are as they get perpetually diluted to pay the prefs.
The European one they just launched is STRM.
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52 sats \ 1 reply \ @euthymic 14h
Yes - MSTR holders get wrecked. But the average common stock holder doesn't understand this.
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12 sats \ 0 replies \ @grayruby 14h
They might not get totally wrecked as once the price to NAV settles the stock price should go up with the price of Bitcoin but they will be perpetually diluted to pay the prefs. So you need the stock to go up at least at the rate of dilution to break even. .
It's kind of like when you get a 5% raise but the money supply grows by 10%. You didn't get wrecked in nominal terms but you are slowly getting poorer in real terms.
Now maybe MSTR can continue this financial engineering strategy long enough to eventually leverage their huge stack and be some kind of Bitcoin bank and have a viable business that way. Who knows.
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