MSTR (MSTR)

🔥@Strategy is indeed a Ponzi scheme, with the risk falling entirely on $MSTR shareholders

📌 The DAT model operates best when mNAV >1:
- When mNAV >1: Sell shares / issue preferred -> buy more BTC -> increase BTC per share.
- When mNAV <1: Shares are discounted relative to net assets -> need to buy back shares, or sell assets to protect shareholders.

At the point when $MSTR shares have mNAV near 1, $MSTR should sell BTC to buy back shares, but Say lỏ did the opposite.
Self-diluting ordinary shareholders while the shares are cheaper than NAV.

📌 Strategy is no longer a company that only holds BTC:
- Common stock of MSTR is at the bottom.
- Preferred stock is in the middle.
- Convertible debt, dividend obligation, ATM issuance are above.
-> Bitcoin is the core of all the above. Strategy has to pay very high dividends for the preferred shares, leading to higher cost of capital, so it is no longer cheap. Even if the model is to be maintained, Strategy is forced to accept a higher yield (i.e., higher interest cost) to raise new capital.

Just like that.

There's still time to sell your $MSTR above $100 https://t.co/eccNh233YX

$MSTR chart with previous cycle buys and sell https://t.co/aBsannamnD