Goji berra on Nostr: so the idea used to be: short fiat long bitcoin --> borrow convertible debt at lower ...
so the idea used to be:
short fiat long bitcoin --> borrow convertible debt at lower interest rates than what individual investors can
it was understandable for someone who wanted to short the fiat system and didn't mind the volatility
however now they have made a sort of Rube Goldberg machine with STRF and STRK preferred shares. the 10 and 8 % dividends of the preferred shares are always paid out by selling shares of MSTR into the market.
it should be no problem since the price of the underlying bitcoin collateral should grow much faster than the 10% and 8% fiat dividends. and they are well over-collateralized (5 to 1).
the MSTR shareholders are betting that the price of bitcoin will rise much quicker than the 10 and 8% dividends, plus the Bitcoin bought by the STRF and STRK shareholders grows faster than the dividends and increases MSTR shareholders Bitcoin per share.
the worry is that sentiment drives MNAV right now and not any underlying business model.
Published at
2025-05-27 17:45:25Event JSON
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"content": "\n\nso the idea used to be:\n\nshort fiat long bitcoin --\u003e borrow convertible debt at lower interest rates than what individual investors can\n\nit was understandable for someone who wanted to short the fiat system and didn't mind the volatility\n\nhowever now they have made a sort of Rube Goldberg machine with STRF and STRK preferred shares. the 10 and 8 % dividends of the preferred shares are always paid out by selling shares of MSTR into the market.\n\nit should be no problem since the price of the underlying bitcoin collateral should grow much faster than the 10% and 8% fiat dividends. and they are well over-collateralized (5 to 1).\n\nthe MSTR shareholders are betting that the price of bitcoin will rise much quicker than the 10 and 8% dividends, plus the Bitcoin bought by the STRF and STRK shareholders grows faster than the dividends and increases MSTR shareholders Bitcoin per share. \n\nthe worry is that sentiment drives MNAV right now and not any underlying business model. \n",
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