Strategy ($MSTR): What most are missing, and why it will be a monster money maker this cycle.

The pivot is here, and no one sees it yet. When they do, they will be chasing giant green candles.

$MSTR $129 / BTC $71,600 / 205,800 Sats/sh

Crypto X is filled with a multitude of $MSTR Bulls and Bears, and most are mindlessly promoting or fudding. The reality is, almost all are missing the real value proposition.

Until late January this year, $MSTR was making moves to protect itself and ride out the storm. They sold $MSTR dilutively to raise cash for the dividend, they sold $MSTR dilutively to buy more BTC and maintain the ROC (return of capital) status of $STRC dividends.

Starting late January though, they pivotted hard and every BTC purchase has been accretive on a BTC/share basis. Total yield to date is 5.6%, in the deepest part of the bear market, with BTC purchases accelerating to $1B/week. $STRC ATM sales are making up larger and larger portions of the funding of every BTC purchase, making those purchases increasingly accretive.

Value Proposition of $MSTR:

• Strategy has pivoted from dilutive $MSTR ATM sales to accretive BTC purchases composed mainly of $STRC sales, and now has almost four months of BTC/share growth.
• As the trend of BTC/share growth accelerates, the mNAV premium will expand greatly in anticipation of continued (and increased) BTC/share yield, and amplify the coming BTC price appreciation.
• The already huge demand for $STRC as an effective high yield perpetual money market instrument will increase drastically with the return of the bull market and positive BTC price action.
• The increased $STRC volume will yield significantly larger BTC purchases, into a decreasing free float, and cause a feedback loop.
• The consistent price-agnostic BTC demand/buying will create a higher floor than in previous bull runs, and likely shorten the length of it as well. Those calling for 30K and 40K will be sadly sidelined, and jumping back in above $100K BTC as they realize they missed the boat.
• $MSTR itself offers attractive yield via covered calls during bear market relief rallies.
• At this stage of the bear market, $STRC acts as an excellent cash flow generator. That yield can then be deployed into $MSTR to DCA into a core position. Eventually I plan to rotate the STRC position into MSTR as we near expected end of bear market July/Aug this year.
• The risk reward of current BTC prices is very favourable. I expect one more leg down in BTC into the mid to high $50K range, but upside is in the 4–5X range at the next cycle top. I have already begun building a core position in $MSTR.

Conclusion:

While the majority discuss Strategy’s liquidation levels and yield burden, they miss the forest through the trees. If they can raise $1B a week in the depths of the bear market, they can fund their preferred shares indefinitely. As the BTC/share grows and that growth accelerates, the premium buyers are willing to pay will increase drastically.

BTC per share increases, BTC price increases, premium paid on those BTC increases … $MSTR price goes bonkers.

Good luck out there, and see you on the next one!

Sovereign Crypto (aka RickyBobby)

I release regular altcoin and crypto updates, subscribe for more info and to keep up to date!

Social Media:

• Twitter (X) https://twitter.com/fourthesauri

Disclosures:

• I own or am accumulating the above mentioned tokens/investments.
• Not financial advice.
• I rebalance my portfolio occasionally and the above may change from time to time.

Strategy ($MSTR): What most are missing, and why it will be a monster money maker this cycle. was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.