MSTR Word Sense

"THING" - highly voted

MSTR Has An Infinite Money Glitch 2024-11-25T09:24:14+00:00 1613 wallstreetbets

Clearly in 2024 we finally found a risk free asset, they thought bundled mortgages are the thing but no, MSTR has brought us something much more secure!

MSTR completed $3 BILLION Offering of Convertible Senior Notes at 0.0% interest to buy Bitcoin 2024-11-21T21:48:21+00:00 1299 wallstreetbets

Hundreds of billions of dollars in fixed-income funds want exposure to crypto to juice their returns.
No such exposure existed, so Saylor comes up with this crackpot scheme where MSTR becomes a structured note originator that's giving out "fixed-income" crypto exposure, but it's at 0% interest and insane premiums.
Normally these funds would scalp premium from both sides by simultaneously holding the bonds and shorting the stock, but since it's 0% interest and they need a 55% gain to see profit, they can't short without harming themselves.
So the stock can keep going up, completely unchecked by short sellers (until players like Citron try to muck things up anyway).
It's why people are calling it the infinite money glitch.

MARA has bought another $1.1 BILLION Bitcoin (11,774 BTC ) achieved BTC Yield of 12.3% QTD and 47.6% YTD 2024-12-10T13:48:47+00:00 99 wallstreetbets

For their net asset value to just go down to match their liabilities, BTC would need to lose more than 80% of its value.
While bear cycles are a thing for BTC, and there will certainly be a drop at some point, the likelihood that it falls below 17k per BTC and stays there long enough for MSTR to be in financial trouble seems extremely low.
I am not sure about MARA's financials, but MSTR's bonds are super safe, unless you think BTC is going to 0.

"THING" - recently

Can someone explain how MicroStrategy makes money? 2024-12-21T19:19:48+00:00 64 investing

It's a house of cards built on the price of Bitcoin and the next investor paying an increasing premium for a smaller and smaller portion of Bitcoin
They're tipping their hand and saying the only thing they're doing is acting as a Bitcoin Treasury and a marketing machine.
- the price of Bitcoin remains steady and shares get priced at an outrageous premium allowing them to buy enormous amounts of Bitcoin
They dilute the BTC exposure of those who purchase the newly offered shares and distribute it to existing shareholders.
MSTR can never provide the same amount of BTC per dollar because doing so would eliminate one half of their business model.

What Are Your Moves Tomorrow, December 20, 2024 2024-12-20T01:14:47+00:00 10 wallstreetbets

The only good thing about losing like $7k on fucking VOO shares in the past two days is that MSTR is down 24%.

If Bitcoin falls below $23,000, MicroStrategy will be forced to liquidate all of its BTC holdings and file for bankruptcy lol 2024-12-18T16:56:13+00:00 3 wallstreetbets

in this case "Bitcoin goes down" isn't exactly a rock the earth type of scenario.
so this completely unrealistic hypothetical I'm postulating actually already happened.
again, I don't think it's realistic that BTC drops long term like 5-10 years.
not sure that makes any sense... most arguements and critiques are explained through logically considering hypothetical scenarios.
On the downswing I think lots of people are going to be dumping MSTR because it's one thing to have your BTC devalue 30-50%.

"HOLDING" - highly voted

MSTR completed $3 BILLION Offering of Convertible Senior Notes at 0.0% interest to buy Bitcoin 2024-11-21T21:48:21+00:00 1299 wallstreetbets

Hundreds of billions of dollars in fixed-income funds want exposure to crypto to juice their returns.
No such exposure existed, so Saylor comes up with this crackpot scheme where MSTR becomes a structured note originator that's giving out "fixed-income" crypto exposure, but it's at 0% interest and insane premiums.
Normally these funds would scalp premium from both sides by simultaneously holding the bonds and shorting the stock, but since it's 0% interest and they need a 55% gain to see profit, they can't short without harming themselves.
So the stock can keep going up, completely unchecked by short sellers (until players like Citron try to muck things up anyway).
It's why people are calling it the infinite money glitch.

As is tradition, MSTR purchases another 21.5k bitcoin for $2.1bn 2024-12-09T13:15:06+00:00 204 wallstreetbets

I'm all for BTC and it's kinda worrying that MSTR now approaching to holding about half a million BTC out of the 21 million that will ever be available.

$MSTR has been added to the NASDAQ 100 2024-12-14T03:32:09+00:00 42 wallstreetbets

Why would you willingly *not* board the gravy train?
Were you not aware the bond market is worth ~430 trillion dollars, and is used to 1%-3% annual returns?
and Mike just let them do a line of coke off a secure server holding 5000 BTC balanced on a hookers ass.
Lol it's not a ponzi when it's the only company selling Bitcoin exposure to the bond market, and the bond market is buying the exposure (via convertible notes which act like call options on MSTR expiring in 2027) hand over fist and then demanding more.
bond traders are looking at their first year making more than 10% potentially *ever*, and you think they're NOT gonna cream their jeans?

"HOLDING" - recently

Why invest in MSTR instead of directly buying BTC? 2024-12-22T04:11:37+00:00 3 investing

Because you believe through debt and at the market offerings that Microstrategy's bitcoin per share will keep going up.
Assuming he executes his plan there is a good chance some day it will.
As of today it's better to buy Bitcoin, but let's pretend Saylor keeps increasing their Bitcoin reserve and some day you're MSTR holding is worth more than 1 Bitcoin per share.

Why invest in MSTR instead of directly buying BTC? 2024-12-22T03:51:12+00:00 3 investing

Where BTC is a bearer asset with basically no counterparty risk, MSTR is very reliant on Saylor continuing to make good decisions and staying solvent.
God knows what happens if Saylor dies and gets replaced with some random suit.
You'd be betting on their ability to keep using their access to credit markets to acquire BTC more efficiently than you otherwise could, increase BTC per share, and eventually do something interesting with their massive holdings as BTC adoption matures.

Can someone explain how MicroStrategy makes money? 2024-12-21T20:07:58+00:00 2 investing

Also, some of the cash MSTR obtained was from regular stock issuance.
Comparing the scale of MSTR's actual business division with the size of their BTC holdings... it is very clear that they entirely depend on BTC staying above a certain price to avoid bankruptcy.
Right now the first google result says their liquidation point is $16,500 (requires an 83% drop in value).
The reason is that much of the debt is stock-convertible which gives creditors potetially very big upside, and thus they are willing to lend at a low rate.
Even just dropping to the $20k's might kill the company as people try to sell their BTC holdings before MSTR's huge stash gets liquidated, which itself would drop price below $16.5k.

"FUND" - highly voted

MSTR completed $3 BILLION Offering of Convertible Senior Notes at 0.0% interest to buy Bitcoin 2024-11-21T21:48:21+00:00 1299 wallstreetbets

Hundreds of billions of dollars in fixed-income funds want exposure to crypto to juice their returns.
No such exposure existed, so Saylor comes up with this crackpot scheme where MSTR becomes a structured note originator that's giving out "fixed-income" crypto exposure, but it's at 0% interest and insane premiums.
Normally these funds would scalp premium from both sides by simultaneously holding the bonds and shorting the stock, but since it's 0% interest and they need a 55% gain to see profit, they can't short without harming themselves.
So the stock can keep going up, completely unchecked by short sellers (until players like Citron try to muck things up anyway).
It's why people are calling it the infinite money glitch.

YOLO 445k mstr 2024-11-21T18:24:33+00:00 224 wallstreetbets

You won, congrats, and focus now on being healthy, creating lifelong memories, and spend time with friends and family.
From a historical perspective, if you invested $800k into SPY or any low fee S&P 500 index fund + reinvest dividends and let it sit for 40 years, this would be:
I will am doing this and setting the rest aside in a high yield account to pay off any excess capital gains taxes I have for 2024.

I don't understand MicroStrategy 2024-11-27T13:03:52+00:00 205 stocks

The funds are market neutral gamma traders, who will short MSTR shares to delta hedge, and will profit from the convexity of the call option as volatility increases.

"FUND" - recently

Daily Discussion Thread for December 19, 2024 2024-12-19T19:37:24+00:00 2 wallstreetbets

Chucked the last of the funds on 295p 12/27 MSTR.

If Bitcoin falls below $23,000, MicroStrategy will be forced to liquidate all of its BTC holdings and file for bankruptcy lol 2024-12-17T23:06:21+00:00 2 wallstreetbets

,,If Bitcoin drops 50% is anyone going to be looking for exposure at 400% markup"
As long as there's value in BTC, MSTR won't go bankrupt.
The only catalyst capable of doing that from my point of view is if the hedge funds make the biggest rug pull in history, and/or government/institutional spending is cut to 0, which is completely impossible as long as there's gains in BTC.

What happens to MSTR loans when Bitcoin dips below their average entry price? 2024-12-15T15:53:39+00:00 4 stocks

They are accepting the risk of capital if MSTR goes bankrupt or if BTC goes to zero from now until maturity date.
If MSTR skyrockets to 1000 or > 670 by Jan 2027, the hedge fund is forced to convert early and exercise their call options and they will make 24% during that period.
As for trading volatility, the bond holders will make money by selling LEAPS call options.
They will exercise their right to buy at 670 and they are obligated to sell at 670 (short Jan 670 call) for breakeven but they took in the 165.00 premium which is their to keep for a profit.
A large institution or hedge fund will lend money to MSTR at 0% for 5 years or agreed upon date (0 coupon).

"TECH" - highly voted

Microstrategy is buying bitcoin at a low price now than in September 2024-12-09T22:12:34+00:00 28 wallstreetbets

[Their BTC yield hit 17.8% in just nine months](https://finance.yahoo.com/news/ride-bitcoin-hype-rumble-steps-042647807.html), crushing their target.
They raised $2.1B in 2024 alone through ATM offerings and convertible notes.
Meanwhile their actual software business is pumping out AI products and [partnering with big players like Zebra](https://finance.yahoo.com/news/microstrategy-incorporated-mstr-partners-zebra-153828866.html).
MSTR is playing 4D chess with their bitcoin strategy.
A tech company YOLO'ing into bitcoin while also having legitimate AI plays.

Daily Discussion Thread for December 02, 2024 2024-12-02T20:02:36+00:00 20 wallstreetbets

This dumbass gets to $1M overnight in his early 20s and throws it all away within a week.
I can't stop being mad about that guy who went $1000 -> $1M on MSTR and then lost most of it.
That fucking gourd is holding over $200k worth of MSTR $500c that expires this Friday.
All he pulled out was $150k, but I guarantee he ends up gambling that away too.
I'm 45 years old, I just got to $1M net worth this year (#humblebrag), after working my ass off in tech for 25 fucking years (I was way under paid until 10 years ago).

Is the idea that MicroStrategy (MSTR) provides value to shareholders by issuing debt and equity to buy Bitcoin valid, or is it absurd ? 2024-12-14T18:21:48+00:00 13 investing

* Don't listen to the cryptobros with their shills or "no coiner" taunts.
The cryptospace has long since given way from those who were anti-banking, pro-decentralization, and tech-oriented to sketchy grifters who are more about manipulating human psychology than the blockchain tech, crypto bros who care less about the tech and more about power/status/money, and corporate/rich whales who care about upside potential than decentralization.
* Don't be jealous of insane crypto returns (markets don't pretty well in of themselves and every asset has pros/cons).
I like the underlying concepts of BTC and the technology behind it but I don't like the seeming contradictions between the white paper and what's unfolding, the lack of real applications or use cases, and how the space is turning out so I'll avoid it.
* Don't FOMO into crypto just because you feel you're missing out.

"TECH" - recently

What Are Your Moves Tomorrow, December 16, 2024 2024-12-16T00:39:43+00:00 5 wallstreetbets

At what point does big money sell off toppy tech to start loading up on BTC (or MSTR)

Is the idea that MicroStrategy (MSTR) provides value to shareholders by issuing debt and equity to buy Bitcoin valid, or is it absurd ? 2024-12-14T18:21:48+00:00 13 investing

* Don't listen to the cryptobros with their shills or "no coiner" taunts.
The cryptospace has long since given way from those who were anti-banking, pro-decentralization, and tech-oriented to sketchy grifters who are more about manipulating human psychology than the blockchain tech, crypto bros who care less about the tech and more about power/status/money, and corporate/rich whales who care about upside potential than decentralization.
* Don't be jealous of insane crypto returns (markets don't pretty well in of themselves and every asset has pros/cons).
I like the underlying concepts of BTC and the technology behind it but I don't like the seeming contradictions between the white paper and what's unfolding, the lack of real applications or use cases, and how the space is turning out so I'll avoid it.
* Don't FOMO into crypto just because you feel you're missing out.

Annual changes to the nasdaq 100 announced 2024-12-14T04:09:57+00:00 10 stocks

I liked EQQQ because of the tech heavy nature and I was okay with the risk.

"MONEY" - highly voted

MSTR completed $3 BILLION Offering of Convertible Senior Notes at 0.0% interest to buy Bitcoin 2024-11-21T21:48:21+00:00 1299 wallstreetbets

Hundreds of billions of dollars in fixed-income funds want exposure to crypto to juice their returns.
No such exposure existed, so Saylor comes up with this crackpot scheme where MSTR becomes a structured note originator that's giving out "fixed-income" crypto exposure, but it's at 0% interest and insane premiums.
Normally these funds would scalp premium from both sides by simultaneously holding the bonds and shorting the stock, but since it's 0% interest and they need a 55% gain to see profit, they can't short without harming themselves.
So the stock can keep going up, completely unchecked by short sellers (until players like Citron try to muck things up anyway).
It's why people are calling it the infinite money glitch.

MSTR completed $3 BILLION Offering of Convertible Senior Notes at 0.0% interest to buy Bitcoin 2024-11-21T21:23:47+00:00 627 wallstreetbets

And if they weren't, isn't this essentially just him selling you calls on MSTR in exchange for interest free money for 4 years?

MSTR Has An Infinite Money Glitch 2024-11-25T09:40:57+00:00 478 wallstreetbets

MSTR is taking other people's money and turning it into bitcoin, then extracting some value (in the terms of their convertible bonds) rather than returning the entirety of the gains to the investor, and offering lower volatility in exchange.
But MSTR is the only one selling bitcoin bonds, so theyre gobbling up massive amounts of dollars as we figure out how big this market is.
Theyre 99% market share for a newly invented financial instrument.

"MONEY" - recently

Weekend Discussion Thread for the Weekend of December 20, 2024 2024-12-22T20:21:24+00:00 5 wallstreetbets

I lost money on MSTR puts when it popped to100k and now I have calls

Can someone explain how MicroStrategy makes money? 2024-12-21T22:37:45+00:00 2 investing

> Many organisations aren't allowed to buy risky assets like bitcoin but are allowed to buy bonds so microstrategy take advantage of them and put a huge mark up on the bitcoin.
The only ones who lose there are the common holders, who get diluted versus buying BTC themselves.
The biggest buyers of the MSTR bonds are convertible arb funds.
They buy the convertibles and gamma hedge them, making money along the way so long as the underlying stock volatility stays up.
If MSTR is trading at a 100 imp vol and can sell convertibles with an implicit implied vol of 50 (or whatever), it's a win-win for Saylor (who wants to keep buying BTC) and the bond buyers (who are effectively "laundering" vol for profit).

Can someone explain how MicroStrategy makes money? 2024-12-21T20:14:46+00:00 32 investing

Matt Levine has written about this multiple times recently.
MSTR is able to sell them exposure at a premium.
As long as that premium holds, it's a free money printer for them.