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⚡️ CEO Strategy: Bitcoin's decline is a great buying opportunity.
➥ Strategy has created two reserves: a dollar reserve for current needs and a BTC reserve for long-term holding.
➥ The goal of the dollar reserve (at $1.44b) is to have a cash buffer so there's no need to sell Bitcoin, even if the market declines for three consecutive years.
➥ The funds for the dollar reserve were obtained by selling shares at a price above net asset value (mNAV)—this is beneficial for shareholders and does not weaken the company's position.
➥ Strategy actively uses perpetual preferred shares. This is a new instrument—the market needs 1.5-2 years to properly value it (just like with the BTC strategy and debt instruments).
➥ Preferred shares yield 10%+ and are more advantageous than regular bonds, especially now, with a dollar reserve available for dividend payments.
➥ The company buys Bitcoin when possible. Strategy are not traders but investors. Trying to catch the bottom is pointless; professional funds are always faster.
➥ When Bitcoin declines and mNAV remains above 1, buying BTC through share issuance becomes even more profitable.
➥ The main thing is not the price of Bitcoin, but the company's ability to increase the amount of BTC per share and maintain investor trust. Strategy is neither an ETF nor a fund.
#ShowMyAlphaPoints