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MSTR also produces some income. That income is multiplied by the P/E ratio at 30:1 currently. So $1 of income winds up producing a $30 valuation increase in stock price. When the stock gets overvalued, Saylor can issue more stock and purchase more BTC.
Furthermore, like in this example, Saylor can borrow money and use that money to buy more BTC.
These are all things that an ETF can't do....since an ETF is a purely passive. Basically saylor has turned every accounting trick possible with a public company into a play to acquire more and more BTC. So buying MSTR is a bit like buying a 2x long btc option.
It's also worth noting that many companies / investors outside the US simply cannot buy the ETFs. In the UK for example, MSTR really is the most direct form of exposure.
Plus worth noting MSTR can be a part of your tax-free ISA portfolio
Of which I take full advantage of, lol
Vanguard allows MSTR but have blocked all ETF including GBTC.
Exactly 💯
Good explanation
Also no ETF fee
Awesome, can't resist the âš¡!
At this point, what's the advantage of buying MSTR vs the ETF directly for companies who want btc but don't want to do the legwork?