He is pretty transparent on what he is trying to do... raise enough capital to corner the bitcoin market... Selling equity at a premium to NAV made sense.... issuing preferred equity with a 10% coupon? Not so much
My thinking is more about the buyers and holders, it makes no sense to me to buy/hold MSTR vs BTC/IBIT, yet there is still a premium despite the lower liquidity, extra tax due eventually, leverage at high cost (though marginal)
Anyone buying anything MSTR related is an idiot.
Premium vs spot is nonsense, and in addition, MSTR has large unrealized/untaxed gains, which make it worth even less after tax.
He is pretty transparent on what he is trying to do... raise enough capital to corner the bitcoin market... Selling equity at a premium to NAV made sense.... issuing preferred equity with a 10% coupon? Not so much
My thinking is more about the buyers and holders, it makes no sense to me to buy/hold MSTR vs BTC/IBIT, yet there is still a premium despite the lower liquidity, extra tax due eventually, leverage at high cost (though marginal)
Does this sound like the Hunt brothers again...
Oh yes - thats the model for sure... except the Hunt brother borrowed from banks, and had their credit lines pulled.