MicroStrategy Inc.’s core discovery is that the US stock market will pay $2 for $1 worth of Bitcoin. MicroStrategy (now called Strategy) is essentially a pot of Bitcoins, and its stock trades at roughly twice the value of its Bitcoins. So it issues more stock and buys more Bitcoins and goes up in a bizarre perpetual motion machine that I write about a lot but cannot explain.
Me too, friend. Me too.
"The stock market pretty consistently pays $2 for $1 worth of crypto."
by the laws of the universe, sanity, arbitrage etc etc, this shit gotta stop eventually. (#971152, #974166)
Also, convertible bonds too... let's financially engineer the shit out of this thing.
Twenty One is trying, in part, to replicate that... but won't be as successful, says Levine, since MSTR is meme-ish already and double-/tripple levered ETFs already shoving the stock around.
MicroStrategy really is a finely tuned machine for extracting value from Bitcoins in the public markets, but it’s not that easy to copy it. Honestly it’s still pretty easy though.
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