$MicroStrategy(MSTR)$ As almos

$MicroStrategy(MSTR)$ As almost anyone can borrow money to buy bitcoin, there is no massive advantage to having MSTR do it and no justification for the high premium. There is some value from MSTR's ability to monetize BTC's volatility to get cheap convertible financing. However, this is not enough to justify selling for twice the fundamental value.

Just because the firm has been able to borrow money to buy more bitcoin does not mean it can do so forever.

MSTR is basically a closed-end fund selling at a huge premium - roughly twice the value of its assets. As we learned from GBTC, a huge premium can turn into a big discount rather quickly.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":335526424842272,"tweetId":"335526424842272","gmtCreate":1722951303166,"gmtModify":1722951650695,"author":{"id":9000000000000674,"idStr":"9000000000000674","authorId":9000000000000674,"authorIdStr":"9000000000000674","name":"BonnieHoyle","avatar":"https://static.tigerbbs.com/c6aef5efa562fcc65b505cf6354c3048","vip":8,"userType":8,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":29,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body> <a data-mention-id=\"MSTR\" class=\"teditor-mention\" data-mention-name=\"MicroStrategy\" href=\"https://ttm.financial/S/MSTR\">$MicroStrategy(MSTR)$</a> As almost anyone can borrow money to buy bitcoin, there is no massive advantage to having MSTR do it and no justification for the high premium. There is some value from MSTR's ability to monetize BTC's volatility to get cheap convertible financing. However, this is not enough to justify selling for twice the fundamental value.Just because the firm has been able to borrow money to buy more bitcoin does not mean it can do so forever.MSTR is basically a closed-end fund selling at a huge premium - roughly twice the value of its assets. As we learned from GBTC, a huge premium can turn into a big discount rather quickly.</body></html>","htmlText":"<html><head></head><body> <a data-mention-id=\"MSTR\" class=\"teditor-mention\" data-mention-name=\"MicroStrategy\" href=\"https://ttm.financial/S/MSTR\">$MicroStrategy(MSTR)$</a> As almost anyone can borrow money to buy bitcoin, there is no massive advantage to having MSTR do it and no justification for the high premium. There is some value from MSTR's ability to monetize BTC's volatility to get cheap convertible financing. However, this is not enough to justify selling for twice the fundamental value.Just because the firm has been able to borrow money to buy more bitcoin does not mean it can do so forever.MSTR is basically a closed-end fund selling at a huge premium - roughly twice the value of its assets. As we learned from GBTC, a huge premium can turn into a big discount rather quickly.</body></html>","text":"$MicroStrategy(MSTR)$ As almost anyone can borrow money to buy bitcoin, there is no massive advantage to having MSTR do it and no justification for the high premium. There is some value from MSTR's ability to monetize BTC's volatility to get cheap convertible financing. However, this is not enough to justify selling for twice the fundamental value. Just because the firm has been able to borrow money to buy more bitcoin does not mean it can do so forever. MSTR is basically a closed-end fund selling at a huge premium - roughly twice the value of its assets. As we learned from GBTC, a huge premium can turn into a big discount rather quickly.","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/335526424842272","repostId":0,"isVote":1,"tweetType":1,"viewCount":250,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["MSTR"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":534,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/335526424842272"}