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REDDIT

MSTR: Still fooled by the “strategy”

Here’s the math today (all data is from MSTR website)

Current value of BTC holdings: ~$42 B

Current value of debt: ~$9B

Value of BTC after accounting for debt: $33B

Total cost basis of all BTC holdings:

499,096 BTC x $66,357 (avg cost of BTC purchases, all time)

Total Cost: ~$33B

~33B - ~33B = 0% return

Total all time return on BTC: ~0%

Now let’s look at the all time return at our lowest point for BTC this week ( ~78,000):

Value of BTC holdings at $78,000:

$78,000 x 499,096 BTC = ~$39 B

Current value of debt: ~$9B

Value of BTC after accounting for debt: $30 B

Total cost basis of all BTC holdings:

499,096 BTC x $66,357 (avg cost of BTC purchases, all time)

Total Cost: ~$33B

All time return at BTC $78,000

~30B - ~33B = ($3 B) or -10%

Where is the 2x-3x BTC performance. I don’t even see 1.5x???