#bstockscis @BinanceCIS
#bStocksCIS
@binancecis #bStocksCIS
MSTRB — it’s not just an “asset that moves along with Bitcoin.”
With Strategy, it’s important to look at what happens between BTC and the stock.
Strategy holds Bitcoin on the company’s balance sheet, but at the same time uses corporate financing to increase its BTC reserves.
So when you buy MSTRB, you don’t get the same thing as buying BTC directly.
It’s already a combination of:
Bitcoin
+
corporate balance sheet
+
capital structure
+
the company’s own risk.
That’s why I wouldn’t use a simple rule like “BTC rises → MSTRB should rise the same way.”
My test for such companies:
first, I look at what asset is on the balance sheet, and then — how the company finances its accumulation.
Then it becomes clear what exactly you’re buying.
#bStocksCIS
@binancecis #bStocksCIS
MSTRB — it’s not just an “asset that moves along with Bitcoin.”
With Strategy, it’s important to look at what happens between BTC and the stock.
Strategy holds Bitcoin on the company’s balance sheet, but at the same time uses corporate financing to increase its BTC reserves.
So when you buy MSTRB, you don’t get the same thing as buying BTC directly.
It’s already a combination of:
Bitcoin
+
corporate balance sheet
+
capital structure
+
the company’s own risk.
That’s why I wouldn’t use a simple rule like “BTC rises → MSTRB should rise the same way.”
My test for such companies:
first, I look at what asset is on the balance sheet, and then — how the company finances its accumulation.
Then it becomes clear what exactly you’re buying.