reply on: Microstrategy to raise $600 Million to buy more Bitcoin \ stacker news ~bitcoin

pull down to refresh

20 sats \ 8 replies \ @elvismercury 5 Mar \ on: Microstrategy to raise $600 Million to buy more Bitcoin bitcoin

At this point, what's the advantage of buying MSTR vs the ETF directly for companies who want btc but don't want to do the legwork?

364 sats \ 7 replies \ @freetx 5 Mar freebie

MSTR also produces some income. That income is multiplied by the P/E ratio at 30:1 currently. So $1 of income winds up producing a $30 valuation increase in stock price. When the stock gets overvalued, Saylor can issue more stock and purchase more BTC.

Furthermore, like in this example, Saylor can borrow money and use that money to buy more BTC.

These are all things that an ETF can't do....since an ETF is a purely passive. Basically saylor has turned every accounting trick possible with a public company into a play to acquire more and more BTC. So buying MSTR is a bit like buying a 2x long btc option.

65 sats \ 3 replies \ @orthwyrm 5 Mar

It's also worth noting that many companies / investors outside the US simply cannot buy the ETFs. In the UK for example, MSTR really is the most direct form of exposure.

60 sats \ 1 reply \ @jillofallcoins 5 Mar

Plus worth noting MSTR can be a part of your tax-free ISA portfolio

21 sats \ 0 replies \ @orthwyrm 5 Mar

Of which I take full advantage of, lol

60 sats \ 0 replies \ @Bell_curve 7 Mar

Vanguard allows MSTR but have blocked all ETF including GBTC.

11 sats \ 0 replies \ @ch0k1 OP 5 Mar

Exactly 💯

5 sats \ 0 replies \ @Bell_curve 7 Mar

Good explanation

Also no ETF fee

5 sats \ 0 replies \ @Fabs 5 Mar

Awesome, can't resist the ⚡!