Rate of decline over last 6 months: 0.96 per day
Rate of decline over last 1 month: 1.4 per day
Rate of decline over last week: 3.7 per day
Excited to see where this is going!
https://www.reddit.com/r/Buttcoin/comments/1ouppkg/mstr_is_declining_faster_and_faster/
This day had to come eventually. MSTR basically makes no money from its software business, so its value is roughly equal to its Bitcoin holdings and whatever assets it has, minus its debts. For a while, MSTR’s market cap was about 50% higher than its Bitcoin holdings, which meant for each dollar you bought of MSTR stock you got less than one dollar of Bitcoin. It has taken the Butters a while, but eventually the notion began to creep into their skulls that this is a bad deal. Today MSTR’s market cap and Bitcoin holdings are about equal. However, things are a bit worse than they appear because we need to include the debt still. MSTR raised money for its Bitcoin purchases by issuing convertible bonds and preferred shares. They don’t appear to have gone super crazy with this, but they do have some associated fixed capital-return obligations. Since the software portion of the business doesn’t make much money, they kind of need stock price to stay high to meet their debt obligations.
h/t sykemol