Let’s do some simple math and tell you why this makes no sense.
First off, let’s realize that MSTR has been labeled as a “leveraged BTC play”
I’m here to show you why it is most certainly not.
If we look at its NAV as of today:
Total BTC: 499,096 x $66,258 (avg BTC acquisition price)
≈ $42 billion
Now let’s subtract debt and preferred stock
≈ $9 billion in total
Subtracting the debt MSTR has a value of about:
≈ $33 billion
Now let’s take that $33 billion and compare it to its original cost basis on all of its bitcoin purchases thus far:
499,096 BTC at an avg of $66,357
499,096 x 66,357
… ≈ $33 billion
Now last time I checked, if we spent a total of ~$33 billion on BTC and now have a current value in BTC of about ~33 billion after considering debt… we made a 0% return!
Effectively this strategy has yielded a net of about 0$ at the current price of BTC…
(Obviously numbers were rounded here)