**** no financial advice, just entertainment post **** Sorry Mr jbusse, your post is going to be pushed to a previous page, but I'm quoting your full post Mr jbusse is correct, the Microstrategy operating business is now irrelevant and insignificant Microstrategy is now a bitcoin-backed ponziesque speculative attack on the traditional finance capital markets, stock and bond mstr sells shares to buy bitcoin and also sells convertible debt to buy bitcoin, but on every announcement of at the money share offering, they always have some kind of disclosure statement that some of the proceeds will go to operating expenses including debt repayment this disclosure is also true for the convertible debt offering sell shares to pay debt and other expenses, sell debt to pay other debt and other expenses, sounds like a ponzi Anyway, the traditional 60/40 portfolio is dead The worst performing asset class the past 3 years are bonds, the "safest asset" is the riskiest, TLT was $150 3 years ago, today $90, lmao Except, the best performing corporate debt is mstr and the best performing sovereign debt is El Salvador mstr convertible debt are like tech stocks, up 20% within 2 weeks of issuance, up 120% in 1 year, the bond only funds that own mstr debt are the best performing bond funds Which is why when mstr announces convertible debt offering of $1B and it's oversubscribed, so they go back a week later and sell another $600M also overbuscribed ended up selling $700M Why they go up so much, they pay less than 1% interest only per year? because of the high volatility premium associated with mstr options, the mstr debt buyers are able to sell call options, or short, or hedge profitably with no downside, well protected by the mstr shares, as long as mstr does not go to 0 Well, that's the 40 on the 60/40, what about the stock side of mstr? it has outperformed every single company in the s&p 500 since they adopted bitcoin treasury, beating the magnificent 7 so now, we got the answer to the 60/40 portfolio riddle, 60% mstr stock, 40% mstr convertible bond this is tl;dr already but let me address the mstr debt concerns, there is none They got $900M leftovers that they have not used to buy bitcoin, at least they have not publicly announced, others are tracking the money, credit to them they have $4.x Billion of debt, let me round it up to $5B at an average interest rate only yearly payment of 82 basis points so $41M.... well, they have that from the $900M they have not spent And they just announced ATM $21B over the next 3 years and another $21B of convertible debt, which all the previous buyers are lining up already and all the ones that missed out are probably ready to kill someone to get in so they do not get fired $41M yearly interest payment is nothing.... -------------- I know I sound delusional when I say mstr will be the biggest market cap in 5 years when bitcoin is $1M but all the publicly listed companies should be terrified at what Microstrategy is doing and exploiting mstr is building a very big bitcoin treasury because at a later time, Saylor said it will be a bitcoin bank Some on the mstr community are just running some crazy possibilities of being used in the insurance industry financial collateralization or even in the banking industry better than mortgage backed securities how about this, when mstr is $500B market cap, their volatility might be much lower than what it is, depends on how volatile bitcoin is at $200k/btc But it was speculated that mstr could issue a $50B convertible debt, paying 50bps interest only, to buy $50B short term treasuries paying 450 bps and pocket the $2B profits like Tether, but that's just pure low IQ idea, brain dead even
Druckenmiller & Tudor Jones still shorting the back end of bonds and going long BTC. America dug itself so far in debt, going to the zero-line is inevitable at this point. Biden also forced the de-dollarization of trade at an exponential rate. Just a few years ago people on this forum boasted that wouldn't (couldn't) happen this century. Now we're seeing it already happening with what was supposed to be America's allies. lol Goodbye Greenback, hello BRICs.
The only change I would make to your very good post is that the BRICKS Will not offer anything of value. I don't think any of these countries want to hold other people's currencies because your back into the same mess that you came from. Any rational person would realize that the best option is a neutral and global currency which is of course Bitcoin. Obviously all of these guys want to control themselves so it will likely take them a while to arrive at Bitcoin being the only option, but eventually they will get there. It's kind of like that with nuclear weapons. The world is mostly only safe when everyone has a bomb. That means that nobody has the upper hand. Currency should be like this too.
I know leaps can take a beating and fast! That's how you got it play it though, in it to win it... You can't fold. If anything average down...
waxy, do not play stupid unless you are that stupid, you're replying to a post that is old when the leaps were at a loss m2m, which as you know I posted on bitcoin price thread is in profits now m2m duh
I am well aware of what post I was replying to...?? I think your comprehension skills are even worse than you TA skills! (I was commenting on how leaps can be in a world of hurt fast...and with theta you can't afford any more sideways movement.)
Ok, fine, I'll give you the benefit of the doubt But I wish you had explained it on your post for others, as Bane would say, for the uninitiated... I have not provided update on this thread for a while your post would be the last one read by someone casually reading the last post thinking the position is still in a massive drawdown (Theta is not my problem, there's over a year left on the leaps, delta is my concern, the options are deep in the money)
Wait, where did I get that screenshot? Didn't you post it somewhere recently to show how the position has swung?
Old post has a screenshot, m2m loss, current screenshot is from today m2m profits, current m2m screenshot was posted on the bitcoin price thread also earlier
Ah I mixed up threads.. anyway, good recovery. Got to hang in there with leaps. If you think you're going to play the stop-loss game, you're going to get tapped out.