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If there’s one company that has truly mastered the art of turning equity into cryptocurrency, it’s Strategy — formerly known as MicroStrategy.

"from a dusty enterprise software vendor to a bitcoin-gobbling machine"

what a wonderful description. Also: More stock sales for bitcoin purchases. Dudez running this behemoth have balls of steel... and likes to billion-dollar-cost-average.
FT's Alphaville authors are profoundly unimpressed.
though, this arbitrage is too good to be true (#957321)
Why stop now? As long as the market is willing to value Strategy’s shares at more than double the net asset value of its bitcoin stash, executive chair Michael Saylor will keep issuing stock to buy more. It’s a gloriously self-reinforcing loop: every share sold above NAV is, by definition, accretive. The arithmetic is brutally straightforward, and as long as the music plays, Strategy will keep dancing. 

When will it end?!

Some may scoff and say Strategy is little more than a leveraged bitcoin ETF wrapped in a corporate disguise, with a capital structure that subordinates the interests of its common stockholders,
Some may say that... and, they'd be right. End of.
For now, though, with bitcoin flirting with $97,000 and investor appetite for Strategy’s stock showing no signs of waning, Strategy’s strategy is working. Investors keep betting on bitcoin as a hedge against dollar debasement and keep paying a hefty premium to access the Saylor spectacular.
Maybe it never ends, bitches. Maybe we financially-engineer tradfi assets until they're all bitcoinized and the world is different (=better).
That'd be something, eh.

forgot non-paywalled (THANKS, EDIT FUNCTION!) but I also think Alphaville is open? https://archive.md/r9BSN
The crazy demand for all these modes of accessing exposure to bitcoin is what gives me confidence that bitcoin is wildly undervalued and people just don't know how to get their hands on the real thing yet.
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35 sats \ 2 replies \ @Car 2h
That’s the thing investors do not see Bitcoin they just see a stock going up. All Strategy has to do is produce shareholder value they have no allegiance to Bitcoin.
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That just kicks the question down a level. Why is that stock going up?
On the margin, I'm speculating, there are investors who believe in bitcoin but aren't comfortable risking their capital holding it directly. They may also believe in Strategy's ability to beat bitcoin's appreciation.
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33 sats \ 0 replies \ @Car 47m
That just kicks the question down a level. Why is that stock going up?
It’s a convertible note so instead of just getting money back, investors can choose to turn the loan into company shares. That’s why it’s a win win in Strategy eyes it knows what Bitcoin is going to do.
They may also believe in Strategy's ability to beat bitcoin's appreciation.
Exactly I think they see this as derisking into another asset from insert whatever brokerage account they use. You are unable to do that if you invest directly into Bitcoin. Main reason why I am not for viewing Bitcoin as an investment anymore those days are gone post Bitcoin ETF. 1sat=1sat, I am not saying to spend all of your Bitcoin but I am saying to disregard everything but Bitcoin atp, it’s all a wash.
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44 sats \ 1 reply \ @000w2 3h
I think they don't realise they need the real thing yet. They will learn a big lesson about counterparty risk over the next few years.
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Good chance
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99 sats \ 1 reply \ @Aardvark 15h
Never underestimate what people are willing to do to avoid 5 minutes of reading.
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I was a teacher, so I would never underestimate that.
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Give or take ,, what's in with Bitcoin and ETFs?
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