LynAlden (npub1a2c…w83a) Great interview!
There’s one thing that you might be slightly off on, and that’s regarding the reasons why institutional investors are buying MSTR convertibles.
I’ve spoken to some derivatives traders about this, and it seems that MSTR bond buyers most likely don’t care about BTC at all. Because they’re running a gamma profit strategy where they go long the convertible, and short MSTR. Landing them in a delta neutral position that prints money as long as MSTR stays volatile.
MSTR debt buyers not being bitcoiners, or having any interest in BTC itself likely has important implications when it comes to what the potential market size there is for MSTR debt.
janis / Janis
npub1mf…v27pu
2025-01-29 09:18:53
in reply to nevent1q…k8n4
Author Public Key
npub1mfmpks2n5xzymsp665zlczx3yh2tkp2d0n62flsxmc7lw7j9lkzsxv27puPublished at
2025-01-29 09:18:53Event JSON
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"content": "nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a Great interview! \n\nThere’s one thing that you might be slightly off on, and that’s regarding the reasons why institutional investors are buying MSTR convertibles.\n\nI’ve spoken to some derivatives traders about this, and it seems that MSTR bond buyers most likely don’t care about BTC at all. Because they’re running a gamma profit strategy where they go long the convertible, and short MSTR. Landing them in a delta neutral position that prints money as long as MSTR stays volatile.\n\nMSTR debt buyers not being bitcoiners, or having any interest in BTC itself likely has important implications when it comes to what the potential market size there is for MSTR debt.",
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