Mstr — earnings came out May 1st. My morning media stops last Thursday (here and here) asked for a preview. We are not talking about shares, so I planned to zoom out and beat themes. While I was preparing I had to suppress Eye Roll Reflexes that MTR triggers.
Mstr is, of course, the Ticker symbol for microstratey or strategy that the company is now known. Strategy, front of Michael Saylor, was pioneering the “Bitcoin Treasury” model, now copied by the metaplanet and dozens of other companies. Strategy plans to raise $ 84 billion according to the latest message across equity and permanent income instruments.
Here are three questions:
1. Earnings?
Mstr “Earnings” and “Price Measures” are … Yes, they don’t really mean the same thing, especially when the effect of ASC 2023-08 is backed up. It’s just the price of Bitcoin and financing, plain and simple. Wall Street analysts and teachers should get it right.
2. Strategy?
You can’t just say, “Strategy. “You must say,”Strategy; You know it used to be microstratey. “Like Prince, Puff Daddy, Kanye West and Twitter. NB: People say” strategy “(small” s “) much already.
3. Don’t be a hate?
Mstr supports a market capital of $ 107B with Bitcoin Holdings of $ 53b and Laser Eye Goodwill. No lifeboat, no parachute, no obvious plan B. If it fails, the Bitcoin market could take the blame.
These eye rollers (and some subsequent media coverage) regardless, we can agree that:
– The capital increases are really amazing. The force is strong in this.
– Mstr has increased by 36% in the year compared to less than 5% for Bitcoin. Who should I throw stones?
– Mstr uses cleverly stock price volatility as a function, not a mistake, to 1) Posting of mouth -watering converts, 2) attracts listed options volume and 3) company “yield” strategies. (Just stop calling options sales of a “yield strategy.” And I said “strategy” again. Small “s”.)
– The preferred (strk and strf) hit the brand with some people who like the favorite. Some of my favorite friends are beaten.
Mstr created a movement
Strategy (BIG “S”) has not only created a movement but a category. Delivered MSTR ETFs (including this new one paying “income”), serves the market for which Mstrs 70 Vol is boring. Grayscale announced an ETF that tracks 30 companies that have at least 100 Bitcoin.
Last but not least, Cantor Equity Partners, a SPAC, is together with forming Twenty One Capital, which will have $ 3 billion bitcoin. Mention this trend in a room full of teachers and they shout “Gamestop!” Unisont. It’s funny.
It’s all fine. Adding Bitcoin to the Treasury of Non-Crypto Companies* is an interesting trend. (And that does not include crypto-native companies, such as Coindesk’s parent company, Bullish.)
But it’s only bitcoin at the moment.
US (Bitcoin) Exceptionalism
Despite the solution of US legislative zipper on digital assets and the recent flurry of ETF archives, Bitcoin still dominates the conversation (it still accounts for about two-thirds of the total cryptocurrency market).
Again, it’s fine if we’re talking about a stock value that contributes to a corporate box that is otherwise awarded cash and treasuries. However, the growing number of flavors of Bitcoin exposure gearing, dividend, optionality, protection-to take the place of education about what other blockchain assets hope to deliver and why it is important to spend more time thinking about the asset class.
Until recently, it was fruitless for many investors and advisers, as the brokerage or futures account implementation was not available. (Of course it’s been for ETH, but you need more than ETH to think of “Digital Asset Class.” Lack of enthusiasm for ETH investment vehicles, we think, have fought partially for this reason.)
If 2024 was Bitcoin’s “Coming Out” year, we hope that 2025 will give investors and dealers the opportunity to think deeper and more broadly and implement accordingly. If not, the US Crypto investment narrative will start to sound like a “Bitcoin Maxi” and it feels like leaving money on the table.
