duncan

@rektmando x.com/0xduncan/statu… There is not a situation in which they can proceed without either (a) selling bitcoin, which would be death, or (b) continuing new issuances of some sort, either STRC or MSTR, which, to put it lightly, is a slippery slope

Saylor has lost it with this logic. He has now issued $10b+ of preferred stock at 10-11.5% and has capacity to issue $25b more. That means a dividend bill of $1-4b EVERY YEAR on a software business that makes no cash. He has pre-funded some of this bill for the next year by issuing common stock - but with the amount of preferred shares printed each week this is going to run out. The only option for this capital structure long term is either issuing $1-4b of common stock every year, turning off the dividend or selling BTC. This is now a timebomb.

@J33412279544 @comic @saylor The issue is this. Let’s say bitcoin ran to $1mm tomorrow. That literally does nothing for MSTR wrt cash flow. Sure they’ll trade at a very low mNAV and people would probably buy the stock due to increased asset value, but MSTR will always need new issuances for dividend payment

@comic @saylor If Bitcoin goes to a million, do they not have gains on their stack? It's not revenue, you're right. But what is the worth of the company? How might the market price it?

A Simple Theory of Digital Credit: 1. Acquire a large pool of appreciating capital ($BTC). 2. Issue credit ($STRC) against that capital, overcollateralized by the equity base. 3. Monetize a portion of the appreciation—directly or via derivatives ($MSTR)—to fund the dividend.

@JoeVargas You might still be cooked if it makes you feel any better :)

@0xDuncan Ah ok. I thought I was cooked.

@CyphrGM Where do you buy the native one? I see there is a wrapped version too

The ultimate pain is knowing $XTM is about to follow $XMR and have it's generational run, yet I have no funds to buy it. Do me a favour and buy some, at least that way I can get some cloud when it does a 100x in a month.