brock on Nostr: He’s using fiat leverage and stock dilution to buy more bitcoin exposure. So when ...
He’s using fiat leverage and stock dilution to buy more bitcoin exposure. So when you buy his stock, you’re getting more volatility than the underlying product (bitcoin) - which some portfolios will want …
He’s going to the banks / funds / and pitching this right now. He is looking for more investors into MSTR. He can’t pitch nice to them in person and then backstab them publicly when they’re not around. To him, yield has to be legitimate because that’s what he is pitching.
He’s looking out for his shareholders, which is his fiduciary duty as a board member of a publicly traded company.
Also, he has an information arbitrage right now…next cycle, there might be 10 MSTRs and then this strategy’s alpha is marginalized.
He’s going to the banks / funds / and pitching this right now. He is looking for more investors into MSTR. He can’t pitch nice to them in person and then backstab them publicly when they’re not around. To him, yield has to be legitimate because that’s what he is pitching.
He’s looking out for his shareholders, which is his fiduciary duty as a board member of a publicly traded company.
Also, he has an information arbitrage right now…next cycle, there might be 10 MSTRs and then this strategy’s alpha is marginalized.
quoting note1akz…npjxBut the amount of Bitcoin has not changed. So where is the yield?
When I buy a bond, I’m getting more dollars back. That is the yield. Like a 5% interest savings account. Or like how Celsius was offering x% yield on crypto. The yield is the percentage you’re getting back. And the risk is that they lose all your money.
In the case of a Bitcoin loan, the Bitcoin’s value goes up. But the amount of Bitcoin is the same. That’s why I said 1 Bitcoin = 1 Bitcoin. There is no yield with a Bitcoin loan. The growth in value in fiat terms has nothing to do with the loan. The risk is that the person holding your bitcoin while you pay back the loan can rug you. But that’s still not yield. The value of your bitcoin would be the same if you never took out the loan and never sold it. So it’s not yield.
Unless my understanding of yield is different from yours 🤷♂️
The internet seems to have conflicting definitions of yield.