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184 sats \ 5 replies \ @denlillaapan 14h \ on: The bullish case for MSTR, a contrarian view econ

i can see the attraction from a fiat mindset, you avoid the volatility and recieve a steady dividend.

I agree with this, and that was the compelling, intriguing story from the get-go (#1019584, #1081555).

Spoken to plenty of tradfi peeps (bonds people, PMs etc) who are already Bitcoin curious and they seem pretty convinced that this is an excellent market niché.

Problem:

for (tradfi) people to get this trade (STRC, STRK etc), they have to answer the question "where does the yield come from?" Which is, they have to understand bitcoin and its inevitability. ...but if you get bitcoin's inevitability, why would you want to cap your upside to 10-15% a year, handing over the reins to Saylor with all manner of mNAV compression and management problems associated? No, if you truly get it, you shove your fund or family office into actual bitcoin actually custodied and actually controlled.... and hold ~4.5% T-bills and Nvidia (#877723) for the rest.
= ergo: no massive flows to Saylor.

That's where I'm stuck.

71 sats \ 0 replies \ @elvismercury 8h

I'm stuck even earlier. I believe in btc, yet would happily invest some money for an uncorrelated 10%. Yet that seems not to be what's on offer, which is rather:

Btc is doing great: you get 10%
Btc not doing great: ?

What you have to believe to take that deal I have no idea.

104 sats \ 0 replies \ @grayruby 12h

I think it is a market niche. There is a cohort of investors that would like income at higher yields than most dividend paying stocks offer that it doesn't matter to them if they understand or don't understand Bitcoin. Now I don't think this pool of capital is as massive as some purport but I do think it could be significant.

43 sats \ 0 replies \ @Undisciplined 13h

That's exactly where I got stuck, too.

If you get bitcoin, you probably just buy bitcoin (unless you're capital is stranded, yada yada).

If you don't get bitcoin, you probably don't believe in Strategy either.

21 sats \ 0 replies \ @byzantine 9h

yep. this is right. i get stuck at this point as well.

0 sats \ 0 replies \ @Solomonsatoshi 9h

They do not have to believe Bitcoin will inevitably go to the moon to see that it has enjoyed spectacular gains to date and that buying via Saylor/Strategy does not require any challenging self custody. There may also be tax advantages in buying via Strategy. Here in New Zealand at least capital gains made via equities are not automatically taxed..whereas any gains made via Bitcoin/crypto are. More conventional investors see others making huge gains via crypto/bitcoin and want some exposure- Strategy and the like are an easy option for them. They are not toxic maxis or revolutionaries- they are just ordinary conventional follow the herd investors seeking diversification and potential gain. They had probably never even heard of the 4 year cycle...