The creator discusses MicroStrategy's strategy of using leverage and borrowing to acquire Bitcoin, noting that the stock currently trades at a significant premium to its Bitcoin holdings, which may not be attractive for a pure Bitcoin investor.
Source Post
A Stock a Day Until I Can Quit My Job: Day 61
Aug 20, 2025
This reel analyzes MicroStrategy (MSTR) and its strategy of borrowing money to buy Bitcoin, referred to as 'Bitcoin yield'. It explains the mechanics of leverage, the use of convertible bonds and preferred stock for financing, and the premium MSTR trades at relative to its Bitcoin holdings. The creator suggests that holding MSTR might only make sense if one's view is on regulatory arbitrage or premium expansion, rather than a pure Bitcoin play.
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