Moneym8ker

@LoveTruthJoy @sp_northbay @thebtcpharaoh @saylor If STRC keeps printing he may try selling higher appreciated bitcoin to pay dividends. He’s buying 10-20 BTC for every 1 he’s selling to pay a monthly dividend. That shoukd relieve ATM sell pressure on the common and if so, it’ll fly

@sp_northbay @thebtcpharaoh @saylor True….. but there is remaining ATM on MSTR and will he go for more?

The 2029 $MSTR Convert Buyback Is Not What It Looks Like It's been a while since I posted on MSTR because there's generally a lot of coverage - and I'd rather only post when I have something to add to the discourse. Like many of you probably, @saylor orange pilled me (MSTR class of 2022) and I haven't looked back since. There's been some important developments lately, and I'd like to weigh in. Saylor is an incredibly intelligent financial engineer (I'm sure even @JoshMandell6 would agree). And I think that reading friday's $1.5B convertible buyback as deleveraging actually misses the trade. While it may look like they're just retiring less favorable debt for a 'healthier' balance sheet, the actual action is a clean short on MSTR's implied vol. Here's how the numbers work out. Strategy is buying back $1.5B of its $3B 0% convertible senior notes due Dec 2, 2029. Settlement around May 19. Conversion price: $672.40 per share. $MSTR price: ~$175. For these notes to convert into common stock at maturity, the stock has to achieve a 284% gain in 3.5 years (46% CAGR). A year ago, $MSTR was $400+. Those same 2029 converts traded above par because the embedded call option had real conversion value. Today, with the stock at $175, that call is deeply out of the money. The bond traded at roughly 92 cents on the dollar. Enter Saylor. The headline trade. $1.5B face retired for $1.38B cash. An 8% discount to par. Roughly a 2.3% annualized IRR on the debt itself. By bond-math standards, that's nothing remarkable. But that's not the trade. The actual trade. The actual trade is the dilution being retired. $1.5B face divided by a $672.40 conversion price equals approximately 2.23 million potential shares. If MSTR rerates above $672.40 by maturity, those shares would have been issued. Every dollar above $672.40 is equity dilution to existing holders. So consider the asymmetry. If MSTR sees $1,000 by Dec 2029, those 2.23 million shares represent $2.23B of dilution Saylor just retired — an ~$850M saving vs. doing nothing. At $1,500, the dilution retired is $3.34B — nearly $2B in savings. And if MSTR stays below $672.40, the converts wouldn't have converted anyway, and Saylor still banks the $120M discount and clears the 0% debt early. Who's on the other side. Convertible arbs. When MSTR fell from $400+ to $175, their hedge worked. The embedded call decayed. Their position printed and now they want their capital back. They sold optionality they had stopped pricing. This is the equivalent of a cash-secured-put run in reverse. When implied vol on a name you have conviction in compresses, you buy back the convexity you originally sold. Saylor isn't selling vol here. He's buying it back. Where this is wrong. If MSTR stays below $672.40 through Dec 2029, the converts never convert. The buyback economics / return shrink to a small one. Not a disaster, but not the trade of the year. The asymmetry really pays if MSTR rerates. That's the bet Saylor is making. Make of it what you will. Issuing the converts was Saylor selling MSTR's upside (even if he said otherwise at the time); buying them back is Saylor purchasing it. He's not telling you he's bullish — he's paying paying $1.38B to buy it back. #Bitcoin

@tacticaldgn @saylor Ain’t happening lol 30bil in debt including preferred and 60bil in BTC and counting. STRC paid off 1.5bil in debt including preferred one trading day lol. Not happening this cycle, keep dreaming

@saylor bull run needs its own collapse. Last cycle: Luna. This time: MicroStrategy getting liquidated while Saylor begs for $STRC votes on his semimonthly dividend fantasy

If you are a $STRC shareholder and have not already voted, please take a moment to do it now. Together, we can make history and establish the $100 standard for Digital Credit.

We turn Bitcoin into Money. $STRC

Strategy to repurchase $1.5 billion principal amount of 2029 convertible notes. $MSTR $STRC strategy.com/press/strategy…

@MaksimXBT @AdamBLiv The interest payment is only 11.5% for as long as strategy says it’s 11.5%. There is no obligation for Strategy to return their capital, ever, unless bankruptcy

@AdamBLiv ~14,155 bitcoin at 11.5% is a steep interest payment

Strategy just sold ~$1.16 billion of STRC today. Permanent capital in Bitcoin going to the balance sheet. ~14,155 Bitcoin acquired - all they have to do is pay 11.5%. For reference, Palantir just reported a net income of $871 million... for ONE QUARTER. Yes... Saylor just raised ~$250 million more in one trading session than Palantir's Q1 NET INCOME. Palantir trades at a 150 P/E ratio. Which growth story do you think the market is undervaluing?

Today we announce our new identity. Strive. The Daily Dividend Company. Beginning June 16, $SATA dividends will be paid each and every Business Day. No more waiting. This marks a major step forward in aligning dividend paying securities with the speed of modern markets. We are extremely proud to be the first company to bring daily dividends to our investors. In addition, we are now DEBT FREE. Zero debt, completely clean balance sheet with amplification provided solely by $SATA. Just over eight months ago, we held zero Bitcoin. Today, we hold 15,009 BTC and are unlocking major innovations across the equity markets for the benefit of our shareholders. This is just the beginning. Strive for Excellence.

@PeterSchiff @BTCoptioneer @saylor I can physically purchase something with bitcoin. Find me a business that will accept payment in gold rings for their products and services

@BTCoptioneer @saylor Name one thing that gold is used for where you can substitute Bitcoin, such as making a ring or conducting electicity.

.@Saylor says Bitcoin is not a currency and never has to become one. He claims Bitcoin is property, like commercial real estate. But commercial real estate has actual value. You can use it yourself or rent it out to someone else. What value does Bitcoin have as digital property?

When you got eight Covid boosters and now you’re going to get a hantavirus vaccine.

Let me recap the earnings call. $MSTR

@AlexesNakamoto @TimKotzman Catchy, love it! “I’d like nothing better than, to rip your wings off” I can’t get it out of my head haha

“Let me recap the earning call…”

They won’t forget these days

Instead of watching an hour of Netflix, watch this 2 hour hour Stanford lecture will teach you more about how LLMs like ChatGPT and Claude are built than most people working at top AI companies learn in their entire careers.

During a week where Strategy could have hammered the common ATM, they chose not to. Not a single cent. If it's not clear already: 1. The foundations are complete. 2. $STRC is now the primary funding mechanism. 3. Strategy is no longer focused on simply accumulating Bitcoin at any cost. It is focused on maximising the ROI (Bitcoin Yield) of every Bitcoin purchase. We are in a completely new phase. Massively bullish.

When you see your homie walk out of his JPMorgan performance review.

RT and ❤️ for a chance to win a signed Dexter Lawrence II Bengals helmet!