Dan on Nostr: Will Microstrategy Sell bitcoin? What if I were to say they will? How in the world ...
Will Microstrategy Sell bitcoin? What if I were to say they will? How in the world would I justify saying that ?
Microstrategy is NOT a standard ETF where it's a dollar for Bitcoin match. Microstrategy uses many methods to produce a stock price premium over the price of their Bitcoin holdings. What if the company formed a new policy to exchange in kind bitcoin at USD market, to its shareholders, for the equal DOLLAR amount of MSTR stock ? The shareholder would simply put in a request along with their hard wallet address and be able to convert their stock to cold stored Bitcoin. What this would essentially do is give the customer self custody BTC if they wanted it in exchange for their stock. Emmediatly after exchanging the customers stock, (that trades at a premium to the company's Bitcoin holdings), Microstrategy would simply reestablish their position back into BTC. When Microstrategy did this they would realize a gain, with each transaction, equal to the premium of the stock price over the bitcoin holdings.
My guess is that if their stock continues to trade a even a slight premium, they will create a plan similar to this.It would be a pricey way for a customer to buy bitcoin, but people would do it.
Microstrategy is NOT a standard ETF where it's a dollar for Bitcoin match. Microstrategy uses many methods to produce a stock price premium over the price of their Bitcoin holdings. What if the company formed a new policy to exchange in kind bitcoin at USD market, to its shareholders, for the equal DOLLAR amount of MSTR stock ? The shareholder would simply put in a request along with their hard wallet address and be able to convert their stock to cold stored Bitcoin. What this would essentially do is give the customer self custody BTC if they wanted it in exchange for their stock. Emmediatly after exchanging the customers stock, (that trades at a premium to the company's Bitcoin holdings), Microstrategy would simply reestablish their position back into BTC. When Microstrategy did this they would realize a gain, with each transaction, equal to the premium of the stock price over the bitcoin holdings.
My guess is that if their stock continues to trade a even a slight premium, they will create a plan similar to this.It would be a pricey way for a customer to buy bitcoin, but people would do it.