MSTR Update re Dilutions and recent BTC Buying Spree - Patreon Q's answered. (Patreon)

LIVE New Bitcoin Microstrategy update - 1.5BN in BTC what does it mean?

https://www.patreon.com/InvestAnswers #Microstrategy #bitcoin #MicrostrategyDilution #MSTRPricePredictions 0:00 Intro 0:20 The opinions expressed in the video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. 0:50 MSTR BTC Purchase History to Date 92,079 Coins that cost $2.171 billion and an average purchase price of approximately $23,985 value today $3,774,747,915 2:00 Citibank Dec 2020 - MSTR at $290 I am jumping in hard with both feet in December 2020, when MicroStrategy announced its first convertible bond offering for the explicit purpose of buying bitcoin Citi immediately downgraded MSTR to a “sell” recommendation 12,000 BTC from Junk Bond Issuance 22,000 from Stock Issuance 3:00 Total Holding could theoretically be 126,500 Bitcoin. Per my math of no more than 14M BTC that will ever exist puts MSTR holding 0.9% of all Bitcoin. MSTR BTC Plans $500M + $1BN 92,079 Coins that cost $2.171 billion and an average purchase price of approximately $23,985 value today $3,774,747,915 3:30 The first $425 million purchase was conducted with cash straight from the balance sheet Also other purchases from FCF 3:40 The Bets - #1 92,079 Coins that cost $2.171 billion and an average purchase price of approximately $23,985 value today $3,774,747,915 4:00 The Bets - #2 2nd bet 650M purchase funded by large capital raise, offering 0.750% Convertible Senior Notes due in 2025 - Should bitcoin go to $0, company is stuck with $650m in debt and $50m/yr in cash Conversion rate for the notes is 2.5126 shares per $1,000 ie conversion price of approximately $397.99 per share This translates into a dilution of approx 1.63m shares on top of 9.62m shares outstanding Investors' stakes will be diluted for a value of approximately $47 Super low interest 4:30 The Bets - #3 3rd bet 1.05bn raise convertible for cash or shares at a 50 percent premium in 2027 Zero percent interest! We got time 92,079 Coins that cost $2.171 billion and an average purchase price of approximately $23,985 value today $3,774,747,915 4th bet $600M senior secured notes that are due by 2028 with an annual interest rate of 6.125% Buying approximately 12,000 Bitcoin 5:30 The Bets - #4 Total BTC now - 104,000 92,079 Coins that cost $2.171 billion and an average purchase price of approximately $23,985 value today $3,774,747,915 6:30 The Bets - #5 5th bet $1BN of stock to be issued # of extra shares 1.587m 1.587/9.62 million = 16% dilution Note from a risk perspective the money is going straight into to buy Bitcoin - so risk is all bitcoin performance. Note BTC as gone up 31% in 5 days Total BTC after #5 - 128,000 8:00 Summary of Where MSTR Could Go? Key messages here are #1 I added my estimate of dilution and did not take into account 2027 dilution as I will be out of this trade by then. #2 new shares are 11.2M. New BTC is 128K. At a 60K BTC MSTR should be trading at at least $775, 80K 1004, 100K 1232 etc. A $1M BTC would put MSTR at 11,518 or up 1800% from today! It is an on ramp that most do not have so I expect a juicy premium as Hedge funds start loading up 9:00 MSTR BTC Risks If third-party service providers experience a security breach or cyberattack, or if private key is lost or destroyed, MSTR could lose some or all of our bitcoin The concentration of Bitcoin holdings enhances the risks inherent in our Bitcoin acquisition strategy Bitcoin holdings are less liquid than cash Bitcoin holdings could subject MSTR to regulatory scrutiny 10:00 Conclusion A $1m BTC would put MSTR at 11,518 or up 1800% from today! An on ramp that most don’t have, I expect a juicy premium as Hedge funds start loading up There is always risk. DYOR I am still long MSTR