Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
The only way you can interpret the MSTR price is through the following graph:
Sorry, this graph hasn't been added to the spreadsheet yet.
This graph shows the number of satoshi held in a single Microstrategy share. It's clear that this number has been constantly growing over the last few years and accelerated after the announcement of Plan 42.
Saylor has steadily increased the number of Satoshi per share over the last few years, returning the investor to a positive BTC yield.
An ETF would instead deliver a negative BTC yield, as the ETF would gradually reduce your shares per share because of the fees to be paid.
If you get a 40% yearly yield, like this year, you can justify a premium of 2.25 with roughly 3.2 years of such a positive BTC yield!
Sorry, this graph hasn't been added to the spreadsheet yet.
This graph shows the number of satoshi held in a single Microstrategy share. It's clear that this number has been constantly growing over the last few years and accelerated after the announcement of Plan 42.
Saylor has steadily increased the number of Satoshi per share over the last few years, returning the investor to a positive BTC yield.
An ETF would instead deliver a negative BTC yield, as the ETF would gradually reduce your shares per share because of the fees to be paid.
If you get a 40% yearly yield, like this year, you can justify a premium of 2.25 with roughly 3.2 years of such a positive BTC yield!
I am not sure if I understand the graph and even the difference between the blue and red lines. I understand your point about a fee from an ETF causing the yield to go down. more than holding MSTR shares.
Also, how come the graph starts January 2023 rather than starting when MSTR started buying bitcoin, which would be August 2021. Is the information being selective? I understand performance might not be consistent since more aggressiveness has come out of the strategy in recent times, and also more creativeness in the kinds of financial tools that were being used, including that with Saylor's reputation growing, MSTR has become a bit of a magnet for certain kinds of investors.