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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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62 sats \ 2 replies \ @byzantine 8h
when every company holds a bitcoin reserve on the balance sheet the multiple to net asset value of strategy we finally drop to one.
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they can only do this because they appear unique. Eventually they'll be a run of the mill is having an IT department in your company.
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0 sats \ 0 replies \ @kepford 1h
That's an interesting thought.
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So, where are you at on "The right price is the current price"?
It sure seems like the market is sending strong signals that the bitcoin price "should be" (in some sense) higher, which is hard to square since anyone can buy bitcoin anytime they want.
What's going on here?
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28 sats \ 1 reply \ @SpaceHodler 4h
There is also the replacement cost. If a large entity wanted to buy a large amount of corn, they'd push the price up and their average price would be higher than the current price. This alone justifies a premium, as long as there is demand.
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100% is a hell of a premium, though.
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I have no idea.
I'm as clueless/befuddled as Levine, I think. The best I have is trapped funds and this being a minor (globally-financially speaking) anomaly about to correct itself
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The fly-wheel taking us towards equilibrium in the near future, would be the easiest outcome to process.
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14 sats \ 0 replies \ @Aardvark 8h
Belive it or not calls.
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