pull down to refresh

120 sats \ 2 replies \ @grayruby 5h \ on: Strategy’s (MSTR) Preferred Offerings Dollar Volume charts_and_numbers
The only issue is the more this grows the more he needs to issue shares and the market isn't paying much of a premium to NAV right now so shareholders aren't really increasing Bitcoin per share.
write
preview
20 sats \ 1 reply \ @BlokchainB OP 3h
Of MSTR shares sure but not for STRC. With the preferred he can buy more BTC without diluting MSTR holders
reply
162 sats \ 0 replies \ @grayruby 3h
Yes he has to issue MSTR shares to pay the prefs. He buys more BTC with the money taken in from prefs which is more btc per shares but if it doesn't trade at a premium that erodes over time as you get diluted to pay the prefs. If it traded at 1mnav in perpetuity 10 years of dilution would offset the upfront capital the prefs bring in. Of course this works even at 1mnav if Bitcoin goes up in value alot because the pref dividends are paid in fiat but shareholders can get Bitcoin upside exposure elsewhere so it only really works well if they trade persistently at an mnav over 1.
reply