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What I've been trying to explain for years - this tweet does it so well. 

  • MSTR is MicroStrategy, a company that invests in Bitcoin and sometimes issues debt to buy Bitcoin.
  • BTC is Bitcoin.
  • $MSTR issues debt to buy $BTC means that MicroStrategy is taking out loans to buy Bitcoin.
  • $BTC against debt, $MSTR mktcap + weight in indices ↑ means that the price of Bitcoin is rising, which is increasing the market capitalization of MicroStrategy. This, in turn, is increasing MicroStrategy's weight in the indices, which are collections of stocks that are used to track the performance of the stock market.
  • $MSTR mktcap, $BTC, weight in indices ↑ means that the market capitalization of MicroStrategy, the price of Bitcoin, and MicroStrategy's weight in the indices are all continuing to rise.
  • $MSTR issues more equity to buy $BTC means that MicroStrategy is selling shares of its stock to buy Bitcoin.
  • $BTC, $MSTR mktcap, weight in indices ↑ means that the price of Bitcoin, the market capitalization of MicroStrategy, and MicroStrategy's weight in the indices are all continuing to rise.

The MSTR fudders cannot do math. 

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Comments

Anonymous

MSTR getting through the bear market - assuming that it is finally over - without selling BTC or going belly up altogether does inspire confidence in the stock, no doubt. Nevertheless, it is worth bearing in mind that to all the positive correlations between MSTR and BTC listed above there is an obverse - if MSTR messes up in their business and they are forced to sell, this could significantly affect BTC price and the next BTC downtrend will drag MSTR down hard, so I hope that Saylor isn't overdoing it with his current BTC purchases and that he stops buying when BTC price action is overheated -otherwise we end up with an overleveraged bet that could hurt both assets.

Anonymous

You are so helpful Please advise on BCH not the fast horse just yet BCH- vs - BCHG TY