In this video, I discuss MicroStrategy's Bitcoin treasury reserve asset strategy by beginning to go over the basics of raising cash through company operations, debt financing, and equity financing. I discuss the risks of too much debt, as well as the risks from too much shareholder dilution from issuing new shares.

MicroStrategy's current valuation is baking in the market's beliefs that BTC will continue to appreciate, and that MicroStrategy will continue to accumulate more BTC. This is why MSTR trades at a premium to its BTC holdings, while spot Bitcoin ETFs like IBIT (which are redeemable for their BTC, unlike MSTR) trade in line with their Bitcoin holdings, and not at a discount or premium.

Stay tuned for Part 2.