$MSTR is equity in Bitcoin's central bank: @Strategy
Why is that? It's something many are struggling to understand 🧵
Central banking is the practice of managing the monetary policy and economic stability of a particular economic bloc. Central banks issue base money, set
Stretch is the most interesting security ever offered by any entity, ever. Let's cut to the chase about its true identity:
$STRC is TradFi's first algorithmic, yield-bearing stablecoin.
- Stretch is Bitcoin's own fiat money
- Stretch sets @Strategy on the path from investment
Why’s $MSTR struggling to break higher?
Its options market is creating sell walls, and it’s no accident.
Take $MSTY, a $4B AUM ETF writing covered calls over a synthetic $MSTR long. Their calls, ~110K contracts at ~$400 strikes, have a gamma of 0.7 each. That’s a net gamma of
$STRC is the iPhone moment not just for @Strategy but for the entire industry. No other crypto product, not even $USDT or $BTC, has as much product market fit.
Consider that Robinhood's very first preferred stock listing is $STRC. Even today their website says they do not
$1.1 billion of ATM used over the last week and the $MSTR chart looks like this: up 28%. $IBIT only up 15.5%.
The ATM has basically no impact whatsoever.
You are forgetting two major things. First, the difficulty only adjusts up to increments of 4X
If this quantum computer can actually mine 1 block per minute, then after the first difficulty adjustment it will be 1 block per 4 minutes. And then 1 block per 10 minutes after the
$MSTR is a coiled spring about to explode.
ATM has pushed the leverage ratio down. Sentiment has soured and volatility has collapsed with the premium. These are all good things. The stock has become a compressed spring.
CB will do the rest. If we see preferred shares this
As we approach the date for $MSTR's potential SP500 inclusion, I wanna highlight how great it is that $18.6 billion of the common ATM has been reserved for the frontrunning which will ensue if index inclusion happens. In Vegas, Saylor said that a WKSI can sell $1 billion of
Use $STRK ATM -> Buy Back $MSTR common (thanks @JoshMandell6 for the creative concept!)
Right now, I think this is much better than buying bitcoin with the STRK ATM. Here are the benefits:
- Positive BTC Yield generated because of the big conversion premium of STRK
- mNAV
Making sense of the $ASST$SMLR merger. What's with this 210% premium?
Important to understand this is an all stock deal. The share prices should joined at the hip with a fixed exchange rate:
21.05 ASST = 1 SMLR
This exchange rate was used, along with the closing prices on
Strategy is Bitcoin's only investment bank, with the most formidable capital moat in the history of investment banking. I've been saying this for months and now the evidence is undeniable.
An investment bank helps its client raise capital from the capital markets by creating
Jim Chanos is now doing the long $BTC, short $MSTR pair trade. He says this is exactly what @Strategy does: sell MSTR, buy BTC. Hence it is a good trade.
Here's why he's wrong.
When Strategy sells MSTR for BTC, it’s a different beast:
- They create MSTR shares out of thin
Quite confident @metaplanet is going to explode from here.
It's the only ~1x mNAV name with a solid prefs plan. The financial repression of Japan makes for a most favorable setup.
The risk-reward is so skewed now and people have been too bearish.
It's go time. $MTPLF
