#bstockscis MSTRB and BMNRB both get called "bitcoin proxy stocks." Are they actually the same trade, though? ⚖️ Running the NAV math on both says no.
Both companies hold real reserves on their balance sheets tied to crypto — bitcoin directly for one, related treasury assets for the other — and both can trade at a premium or discount to what those reserves are literally worth on paper. 💎 Say MSTR's BTC holdings work out to $100 per share in raw NAV terms, and the stock trades at $150 — a 50% premium. If sentiment toward the treasury strategy cools and that premium compresses to 30% while bitcoin itself doesn't move an inch, MSTRB falls from $150 to $130 — a 13% drop with zero contribution from the asset it's supposedly tracking.
🔄 BMNRB carries a comparable premium/discount dynamic on its own treasury assets, but the two companies' capital structures and debt loads differ enough that the same percentage move in the underlying asset doesn't translate to identical stock moves for both names. 🧩
"Bitcoin proxy" is doing a lot of work to flatten two names that can diverge from each other even while both moving in the same general direction as BTC. ₿
Which of the two would you trust more with a leveraged view on bitcoin sentiment specifically, rather than bitcoin price alone? And has premium/discount ever moved one of these against your expectations before?
@BinanceCIS $MSTRB $BMNRB #bStocksCIS
Both companies hold real reserves on their balance sheets tied to crypto — bitcoin directly for one, related treasury assets for the other — and both can trade at a premium or discount to what those reserves are literally worth on paper. 💎 Say MSTR's BTC holdings work out to $100 per share in raw NAV terms, and the stock trades at $150 — a 50% premium. If sentiment toward the treasury strategy cools and that premium compresses to 30% while bitcoin itself doesn't move an inch, MSTRB falls from $150 to $130 — a 13% drop with zero contribution from the asset it's supposedly tracking.
🔄 BMNRB carries a comparable premium/discount dynamic on its own treasury assets, but the two companies' capital structures and debt loads differ enough that the same percentage move in the underlying asset doesn't translate to identical stock moves for both names. 🧩
"Bitcoin proxy" is doing a lot of work to flatten two names that can diverge from each other even while both moving in the same general direction as BTC. ₿
Which of the two would you trust more with a leveraged view on bitcoin sentiment specifically, rather than bitcoin price alone? And has premium/discount ever moved one of these against your expectations before?
@BinanceCIS $MSTRB $BMNRB #bStocksCIS
