No. of Recommendations: 5
This is an interesting one to watch from the sidelines, not sure I would want to participate in any speculation on the potential future.
Background : MSTR is a 'leveraged bitcoin holding company' - they issue preferred shares and then buy bitcoin with the proceeds. The basic premise is that they can find new buyers (suckers) to sell new shares to fund the preferred payouts due every quarter. If bitcoin is trading higher this sort of works.
Well bitcoin is down 30% since October, raising questions about what MSTR will do to raise money for the December payout. They might need to sell bitcoin to raise the required capital. Yes, its a ponzi scheme.
MSTR stock is down 60% from July (from $450 to $180 / share), I sometimes wish I had the courage to short this :)
tecmo
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