$BTC
Bitcoin is now 34% below the 365D moving average.
The bear trend continues.
#Bitcoin https://t.co/cMA8d77STK
$BTC
Bitcoin is now 34% below the 365D moving average.
The bear trend continues.
#Bitcoin https://t.co/cMA8d77STK
As a long term shareholder of MSTR, I personally would love to see them get the STRC machine back up and running and use the STRC proceeds to retire debt as quickly as possible.
If they raise $2B and use every dollar to retire debt...
Debt falls by $2B. Preferred rises by $2B.
Total senior claim stays the same.
$6.71B debt
$15.48B preferred
$22.19B total senior claim
$51.19B BTC NAV
43.4% amplification ratio
After $2B STRC-for-debt swap:
$4.71B debt
$17.48B preferred
$22.19B total senior claim
Same 43.4% amplification ratio
Common holders keep the same BTC amplification, but the capital stack gets cleaner.
Debt/BTC NAV drops from 13.1% to 9.2%.
Hard debt gets replaced with preferred capital.
Maturity pressure goes down, refinancing risk goes down.
The Bitcoin stack stays intact. This is exactly the move to appease S&P. GET RID OF THE DEBT.
Not “more leverage.” Better leverage. AMPLIFICATION.
Strategy should do this aggressively.
1. You can buy more Bitcoin with passive flows by being in the premier stock index
2. You can crank amplification higher if you can’t default
3. Long term this allows more Bitcoin acquired and more outperformance over spot
This is second-worst week on record for ETF outflows.
7 consecutive weeks now.
Weakest month in history.
What makes you still stay in this space? https://t.co/lEAryenJD7
Bitcoin (BTC) is a digital asset and a payment system invented by Satoshi Nakamoto who published a related paper in 2008 and released it as open-source software in 2009. The system featured as peer-to-peer; users can transact directly without an intermediary. Transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain. The ledger uses bitcoin as its unit of account. The system works without a central repository or single administrator, which has led the U.S. Treasury to categorize bitcoin as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency, although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value by now.