Hey Recyclersteve, MSTR of no interest to you?

[tdtwedt]

[shinnosuke]

FWIW:

Saylor's ship is sinking, -$10 after hours

The toxic convertible bonds should begin triggering soon, diluting the stock like 2000 when it fell from $333 to 0.45¢
...

Dec 1999 $MSTR sold convertible bonds with maturity in 2005 exactly like today. When the stock price fell 3 months later the bonds converted into shares

Everyone thought Michael Saylor was a genius before the stock collapsed from $333 to 0.45¢

See you on Feb 19 Michael Saylor

https://x.com/FinanceLancelot/status/18 ... 5972010105

Meanwhile, 3 months later...MSTR's demise has not been predicted as often as BTC's. However, like BTC doomsayers, most haters don't have a clue.

[tdtwedt]

MSTR hit a high of $543 in November 2024.

Now the stock price is $370 six months later.

https://www.cnbc.com/quotes/MSTR

[pmbug]

Caveat emptor ...

https://x.com/FinanceLancelot/status/19 ... 6968955255

[shinnosuke]

Caveat venditor. One might miss out.

$MSTR has a market cap of $101 Billion. The value of Mr. Patten's shares are, in comparison, a drop in the bucket. Besides, he has also filed to exercise and receive some stock options for his service as director. Your warning should tell us why he's selling because people sell stuff all the time, even PMs.

[tdtwedt]

If you haven’t been following along $MSTR ponzinomics here’s a summary…

1. $MSTR survives as a fake Bitcoin ETF in a market full of actual Bitcoin ETFs because it trades at a 2x+ premium to the value of its Bitcoin…for reasons (Half due to some institutional regulations…half bc it’s a cult)

2. But Saylor has had to issue/sell so many new shares of $MSTR to keep buying Bitcoin at the top, that NAV premium has been tanking from dilution

3. If the NAV premium collapses, so does the $MSTR share price

4. So Saylor creates 2 Preferred share structures called $STRK & $STRF to raise more cash to buy Bitcoin without direct dilution of $MSTR common stock, hoping to boost NAV premium

5. These shares are supposedly backed by the same Bitcoin as $MSTR, convertible to $MSTR, and pay a high annual dividend

6. $MSTR as a business doesn’t generate cash flow, so those dividends must be paid by either selling/granting $MSTR common shares, or selling Bitcoin……so they’re still dilutive

7. Since he hasn’t been able to sell enough $STRK and $STRF to support the NAV, Saylor just created a 3rd preferred called $STRD, which also grants a dividend, but doesn’t have any guarantees it will be paid

8. $STRD will likely trade with a higher yield due to the increased risk. Saylor says it also will be used for $MSTR share buybacks if the NAV falls too low

9. $MSTR have created a massive tower of diluting leverage, all supposedly backed by the same pool of assets, to continue to raise capital from a shrinking pool of cash to buy Bitcoin

10. The only way this tower can stay standing is if Bitcoin (and $MSTR price) keeps going up, and Saylor can keep buying Bitcoin.

If the money stops flowing in…

ie..it’s the biggest publicly traded Ponzi Scheme of all time

https://x.com/RhoRider/status/1929770291368255839

[tdtwedt]

From STRF to STRD — is Michael Saylor just selling junk bonds?

Some followers of Michael Saylor have grown tired of his alliterative naming convention for a ballooning series of MicroStrategy (MSTR) preferred shares.

After Strike, Strife, and now Stride, some shareholders just want to call a spade a spade. Indeed, according to several investors, his latest preferreds should be simply junk bonds.

Saylor characterized Stride (STRD) as perpetual preferred stock with $100 of liquidation preference paying non-cumulative dividends at 10%.

https://protos.com/from-strf-to-strd-is ... k-bonds-1/

[tdtwedt]

Saylor prices his latest $STRD trash bond at $85 ($100 par)

It pays 10% dividend…except with this POS they can just choose to not pay at all with 0 penalty

So for just $85 you buy rights to $10 dividend paid from nonexistent cash, you‘ll probably never get! Sign me up!

https://x.com/RhoRider/status/1930989640577962037

[shinnosuke]

Microstrategy has issued three versions of preferred stock lately. Their differences explained:

MSTR vs Preferreds.png (706.55 KiB) Viewed 226 times

[tdtwedt]

Saylor buys more $BTC with only preferred stock vs $MSTR common ATM

Last year his avg Bitcoin buys were $600m-$2B+. The last 2 were just <$200M total

He can’t hit $MSTR ATM without killing mNAV, but the preferreds are far less liquid

His cash tank is getting low

https://x.com/RhoRider/status/1932133379807617300

[tdtwedt]

New lawsuit accuses MicroStrategy of 'misleading' shareholders

On June 10, Levi & Korsinsky, LLP announced a class action lawsuit against MicroStrategy Incorporated.

Investors who had purchased stock in the company from the end of April 2024 through the beginning of April 2025 were invited to register their intent to seek recompense for alleged financial damages. The lead plaintiff registration cutoff is set for July 15.

The official complaint said that Strategy (previously MicroStrategy) management intentionally misled shareholders regarding the true profitability and risks associated with their Bitcoin-centric investment plan, while downplaying the immense volatility inherent in the cryptocurrency's market valuation.

For the first quarter of 2025 financials, Strategy adopted Accounting Standards Update No. 2023-08 for evaluating future adjustments on crypto assets, as the market price reported an unrealized loss of $5.91 billion.

Upon releasing interim corporate statements on April 7, Strategy stock plunged 8.7% as investors reacted to the substantial impairment, closing at $268.14 per share.

Just weeks later, on May 1, the firm acknowledged a loss of nearly $6 billion stemming directly from Bitcoin's massive price drop and the growing uncertainty surrounding future earnings generated through such risky assets.

https://www.thestreet.com/crypto/market ... misleading

[tdtwedt]

Another way to think about $MSTR / $STRD yield dilemma -> Imagine a guy who was previously convicted of fraud and once crashed the entire stock market, offers to sell you a paper ticket that he says will pay you $10 per year

He is deep in debt, has negative income, and the ticket’s fine print says he can just choose not pay you at all if he wants.

BUT he has a big pile of magic beans in the bank, and he promises the future gain in value of those beans will enable him to sell infinitely more tickets to pay all ticket holders the $10.

How much would you be willing to pay for the ticket?

https://x.com/RhoRider/status/1932881809559486820

[tdtwedt]

Another way to think about $MSTR / $STRD yield dilemma -> Imagine a guy who was previously convicted of fraud and once crashed the entire stock market, offers to sell you a paper ticket that he says will pay you $10 per year

He is deep in debt, has negative income, and the ticket’s fine print says he can just choose not pay you at all if he wants.

BUT he has a big pile of magic beans in the bank, and he promises the future gain in value of those beans will enable him to sell infinitely more tickets to pay all ticket holders the $10.

How much would you be willing to pay for the ticket?

https://x.com/RhoRider/status/1932881809559486820

As the price of the ticket goes up (share price), fewer people are willing to buy it. So he must keep making new ticket types that either sell cheaper or promise a bigger payment %.

But with each new ticket, his payment obligation increases, along with risk he won’t pay…so investors demand ever lower prices / higher % payments

This goes on until non payment risk is so high. nobody is willing to buy the tickets anymore, and current ticket holders rush to dump theirs with no more payments coming in

https://x.com/RhoRider/status/1932881812696764685

[shinnosuke]

Michael Saylor. @saylor
On @BloombergTV
I explain $STRK, $STRF, $STRD, the risk of shorting $MSTR, the rise of Bitcoin Treasury Companies, our 100% BTC @Strategy, debunk Quantum FUD, and show why AI is bullish for Bitcoin. <end quote>

20 minute video at the link of Saylor on BloombergTV. Worth it!
https://x.com/saylor/status/1932485145464021158

Buy some BTC and make the price go higher. Or, alternatively, don't buy any so I can continue to buy at current low prices.

[tdtwedt]

MSTR hit a high of $543 in November 2024.

Now the stock price is $385 seven months later.

https://www.cnbc.com/quotes/MSTR