Hey Recyclersteve, MSTR of no interest to you?

[tdtwedt]

Why is MSTR 28% below ATH?

https://www.cnbc.com/quotes/MSTR

[tdtwedt]

MSTR now down to $331 from a high of $543 in November.

A loss of 39% from the ATH.

https://www.cnbc.com/quotes/MSTR

[Recyclersteve]

I think MSTR is down so sharply because they use leverage. This is your best friend when something is going up and worst enemy when it is going down.

[shinnosuke]

I think MSTR is down so sharply because they use leverage. This is your best friend when something is going up and worst enemy when it is going down.

Their story has not even begun. We're not in Chapter 1. We are still looking at the Preface.

[tdtwedt]

Peter Schiff replying to Michael Saylor's latest Bitcoin purchase...

It seems like you are running out of firepower to keep propping up Bitcoin. Plus, not only is this your smallest buy, but the first time your average purchase price has been above the market price on the Monday you disclosed the buy.

https://x.com/PeterSchiff/status/1871190578890944809

[Lemon Thrower]

I think MSTR is down so sharply because they use leverage. This is your best friend when something is going up and worst enemy when it is going down.

Your ideas are not wrong, except that is not what caused MSTR to trade down.

Rather, they have issued $14B of MSTR stock "at the market" in less than 2 months which has absorbed all buying pressure. Simultaneously, they have come under short attack by hedge funds who think MSTR is the same as Bitcoin, when in fact its a way to grow your bitcoin. Those shorts are going to unwind in a massive short-covering rally in Feb-March (after MSTR announces earnings, I expect them to issue as much as $18B of convertible debt). I have confidence that MSTR will issue that debt because:
-they announced $21B of equity and $21B of at the end of Oct 2024
-already raised $14B equity and $3B of debt
-the convertible debt is issued at a premium to current market value, meaning MSTR shareholders accrete bitcoin-per-share upon such issuances.
-MSTR's Chairman wants to "go fast" and buy bitcoin before the price rises further.

I would not be surprised if MSTR doubles its Bitcoin per share by the end of 1Q2025.

[tdtwedt]

MicroStrategy dilutes its shareholders to buy more bitcoin

Unlike BTC, MSTR is nowhere close to its all-time high. Although the stock is one of the best-performing large-cap stocks this year, it’s one-fifth below its November 21 pre-market print of $548.20.

Around that time, Saylor also lost voting control over MicroStrategy. He’s now a minority voter and chairman, prohibited from serving as the company’s CEO due to a 2022 legal settlement.

Some shareholders are growing weary of Saylor’s strategy of selling shares “at the market (ATM)” — i.e. at prevailing market prices, with no discount — in order to acquire more BTC.

Saylor has announced $21 billion worth of ATM sales in his current round of financing, which is still underway.

These sales instantly dilute shareholders while simultaneously increasing the company’s BTC holdings — assuming all of the proceeds are used to acquire BTC, which has been the case in recent months.

https://protos.com/microstrategy-dilute ... e-bitcoin/

[shinnosuke]

I think MSTR is down so sharply because they use leverage. This is your best friend when something is going up and worst enemy when it is going down.

Your ideas are not wrong, except that is not what caused MSTR to trade down.

Rather, they have issued $14B of MSTR stock "at the market" in less than 2 months which has absorbed all buying pressure. Simultaneously, they have come under short attack by hedge funds who think MSTR is the same as Bitcoin, when in fact its a way to grow your bitcoin. Those shorts are going to unwind in a massive short-covering rally in Feb-March (after MSTR announces earnings, I expect them to issue as much as $18B of convertible debt). I have confidence that MSTR will issue that debt because:
-they announced $21B of equity and $21B of at the end of Oct 2024
-already raised $14B equity and $3B of debt
-the convertible debt is issued at a premium to current market value, meaning MSTR shareholders accrete bitcoin-per-share upon such issuances.
-MSTR's Chairman wants to "go fast" and buy bitcoin before the price rises further.

I would not be surprised if MSTR doubles its Bitcoin per share by the end of 1Q2025.

The ETFs -- like BlackRock's -- were already buying 10 times the amount of newly mined Bitcoin. Now more corps and countries are getting involved. Saylor is front-running them all. Since Bitcoin is going to $1 Million, everyone should consider it cheap now. As is MSTR.

[tdtwedt]

MicroStrategy’s over-leveraged Bitcoin gamble mirrors FTX’s collapse—10 billion share dilution looms. Effects are delayed, enabling Saylor to exit profitably before consequences unfold.

https://citizenwatchreport.com/microstr ... nsequence/

[tdtwedt]

MicroStrategy and Its Convertible Debt Scheme

We think MicroStrategy is preying on investors. It is pumping up optimism on bitcoin to drive higher volatility in its stock. Doing so allows it to raise funds and add to its bitcoin holdings. Its convertible funding strategy is legal, but the risks to its shareholders and bondholders are much more significant than many of its investors appreciate.

https://www.advisorperspectives.com/art ... ebt-scheme

[tdtwedt]

MicroStrategy Stock (MSTR) Price Plunges 8% After Latest BTC Buy Amid Fears Of The Firm’s Leveraged Bitcoin Play

The share price of MicroStrategy stock (MSTR) plunged 8% after the firm purchased $209 million worth of Bitcoin (BTC) amid growing concerns of the company’s “leveraged” play.

MSTR lost over $27 during yesterday’s trading session, according to data from Google Finance.

https://insidebitcoins.com/news/microst ... tcoin-play

[shinnosuke]

More BTC purchased by MSTR.

More BTC.png (912.59 KiB) Viewed 172 times

[tdtwedt]

Cost basis per Bitcoin at MSTR now 62K...

What happens when Bitcoin crashes again?

[tdtwedt]

MSTR stock price now $288. High was $543 last month.

https://www.cnbc.com/quotes/MSTR