142 sats \ 2 replies \ @freetx 5 Mar \ parent \ on: Will MSTR Outperform or Underperform Against Bitcoin? bitcoin
yep you are of course right, its not "leverage"
However, it will functionally act as leverage. If 99% of your valuation is your balance sheet and your balance sheet falls by 80%, then obviously your stock will crater as well.
This then impacts your ability to raise more money and may in fact trigger loans to be called.
right, but in the context of outperforming/underperforming BTC, MSTR would probably outperform if they only used share issuance and operating profits, right?
i know the debt introduces some additional risk, but if we remove that variable for now, wouldn’t it be reasonable to think MSTR would outperform as long as operating profits were positive?