3 Comments
User's avatar
тна Return to thread
JM777's avatar

Good analysis but the conclusion is flaccid. "Each new MSTR convert issuance further complicates the math: the effective Bitcoin-per-share ratio has fallen to 0.002 BTC, diluted by repeated capital raises."

MicroStrategy held approximately 0.001121 BTC per share as of year-end 2023.

As of 12/6/24 MSTR has BTC per Basic Share: 0.00171671 BTC

The dilution has come at the expense of people buying overpriced MSTR equity but has benefitted existing shareholders. If the company continue to close the arbitrage itself, it is increasing its BTC per share, which is ultimately what shareholders want.

Expand full comment
Joseph's avatar

Perfectly said. I've read a lot on this topic, this perfectly sums it up. Buy shares at your own peril but the company will keep acting to close the NAV on itself.

Expand full comment
Joseph's avatar

Ultimately, MSTR will continue to do the goal of the company - owning more BTC - at the expense of equity (dilution) and bond (opportunity cost) holders. As a BTC beta holder, thereтАЩs no cause for concern.

Expand full comment