Strive buys Semler... yup yup yup, the world's most predictable outcome:
Buy a below-1 mNAV company with a (large) above-1 mNAV: PROOOOOFIIIIIIT.
What a beautiful quote
That is not what you sign up for when you start a Bitcoin treasury company! The whole point is to trade at a huge premium to net asset value, so that you can sell more shares to buy more Bitcoin and grow your empire. If you are trading at a discount you might as well unwind the trade: Sell all the Bitcoins for $567 million, pay off the debt, and give the remaining $467 million back to shareholders. But that seems like a disappointing outcome.
So instead you get some other schmuck with WAY TOO MUCH AIR on their valuation (mNAV in the 3-8 range) to acquire you at a premium, which works out great for both of yalls:
The better alternative is to sell the whole Bitcoin treasury company to another Bitcoin treasury company, for stock, at a nominal premium to net asset value. Here Semler is getting a nominal price of “approximately $90.52 per share,” based on an exchange rate of 21.05 Strive shares per Semler share and Friday’s Strive closing price of $4.30 per share, though the actual valuation depends on how much the Strive shares are worth.
UNCLEAR who got shafted, really.
if mstr trades at 1.25 nav it means shares could have 25% more btc than start of your purchase price. this year saylor has done just that. it is hopium to assume it grows faster than that seeing he has a 10% drag on the stock with selling shares to pay preferred dividends.
i think a 1.5 nav would be wild since at size it it really hard to grow year over year at 50%
no, at 1.25 mNAV Strategy is roughly a proxy for bitcoin exposure (the prefs and converts act as low-level leverage).
am i wrong in my math? paying a 25% premium means an expectation that you think you will get back 25% at some future date?
yes, that's wrong. And also not what I was saying.
Bitcoin.... fixes this?
OK, but bitcoin INSIDE a corporate wrapper or free-range bitcoin?!
So far the process of concentrating ownership/custody into US incorporated entities is working. As is the strategy of obstructing use of Bitcoin as a MoE. Cementing in the narrative of Bitcoin being a speculative commodity- not a P2P payments protocol. The end objective is to preserve the Fiat Cartels MoE hegemony and to be well positioned for an Order 6102B, if necessary, but it probably will not be necessary as long as the strategy is going as well as it is already. The Revolution got shafted, and virtually nobody sees it...that's how sly it is.