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The reality is the microstrategy is to allow investor which cannot directly own bitcoin, or bitcoin etfs, to own bitcoin. There is a premium associated with thi
by John23832 2y ago
The reality is the microstrategy is to allow investor which cannot directly own bitcoin, or bitcoin etfs, to own bitcoin. There is a premium associated with this (which am suspending analysis on), microstrategy's overshot price.
Any other description is an act of mental gymnastics.
- latchkey 2y agoI don't own MSTR because I want to own bitcoin. I own MSTR because they buy and hold bitcoin, while creating volatility on their stock, which enables a lucrative options market. There is a subtle distinction there. The premium is irrelevant to me because my goal is to own more MSTR stock. The more stock I own, the more covered call options I can sell. Once everyone starts compounding the stock, the price goes up, they have more money to buy and hold more bitcoin, the price of bitcoin goes up. https://en.wikipedia.org/wiki/Wheat_and_chessboard_problem https://en.wikipedia.org/wiki/Wheat_and_chessboard_problem What he has created is a circular infinite money machine that can only be likened to what Warren Buffet did with buying insurance companies and their infinite float.