{"id":30609,"date":"2024-12-06T23:47:38","date_gmt":"2024-12-06T23:47:38","guid":{"rendered":"https:\/\/www.duck9.com\/blog\/?p=30609"},"modified":"2024-12-06T19:48:40","modified_gmt":"2024-12-06T23:48:40","slug":"cornering-the-market-for-issuing-bitcoin-backed-securities","status":"publish","type":"post","link":"https:\/\/www.duck9.com\/blog\/cornering-the-market-for-issuing-bitcoin-backed-securities\/","title":{"rendered":"cornering the market for issuing Bitcoin-backed securities"},"content":{"rendered":"
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If you think MSTR is overvalued because it\u2019s just Saylor raising money to buy BTC, you\u2019re missing the bigger picture. <\/div>\n
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That\u2019s not what he\u2019s doing. <\/div>\n
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According to Saylor, \u201cpublic companies exist to issue securities\u201d.<\/div>\n
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What Saylor is doing is cornering the market for issuing Bitcoin-backed securities. <\/div>\n
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Saylor is operating on a Bitcoin Standard. He knows that the player with the biggest stash of BTC, with the most liquid and volatile stock, with the deepest options market, will be able to issue the most securities backed by bitcoin. Forever. <\/div>\n
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What kind of securities?<\/div>\n
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Saylor is creating securities for several cohorts. Fixed income investors want low or no downside risk with a call option on BTC to capture some of its upside. Saylor structures convertible debt securities and sells them to this crowd. They\u2019re gobbling up MSTR converts. <\/div>\n
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Equity investors want juiced up BTC on steroids. They\u2019re getting what they want because MSTR is leveraged long BTC. Saylor issues new shares \u201cATM\u201d (at the money) to this crowd. As a result of their leveraged long structure, MSTR is up 600% in 2024 alone. <\/div>\n
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Options traders are getting what they want too. BTC is 4x more volatile than the S&P 500 index. High volatility enables massive yields on the underlying asset. These traders are enjoying the deepest, most liquid BTC backed options market as well. These put and call options allow all market participants to structure BTC backed portfolios that match their risk tolerance. <\/div>\n
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The engine powering all of this is Bitcoin\u2019s volatility. While the complaint that BTC is \u201ctoo volatile\u201d is the most common among plebs and wall street alike, Saylor put on his engineering hat and figured out how to harness BTC\u2019s volatility to issue a range of securities rapidly, generating a tremendous BTC yield for MSTR shareholders. <\/div>\n
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You are witnessing the volatility of Bitcoin, harnessed, molded and shaped to allow each cohort of investor to get exactly what it wants. <\/div>\n
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As long as BTC remains volatile, (barring a 95% drawdown in a week or less) the MSTR flywheel should continue to work.<\/div>\n

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Rip VanWinkle ⚡️<\/a><\/b><\/td>\n<\/tr>\n
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If you think MSTR is overvalued because it\u2019s just Saylor raising money to buy BTC, you\u2019re missing the bigger picture. <\/p>\n

That\u2019s not what he\u2019s doing. <\/p>\n

According to Saylor, \u201cpublic companies exist to issue securities\u201d.<\/p>\n

What Saylor is doing is cornering the market for issuing pic.x.com\/nHFH7I7kq1<\/span><\/a><\/td>\n<\/tr>\n

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12\/6\/24, 1:32\u202fAM<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n <\/td>\n<\/tr>\n
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WordPress\u2019d from my personal iPhone, 650-283-8008<\/a>, number that Steve Jobs texted me on<\/span><\/div>\n

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https:\/\/www.YouTube.com\/watch?v=ejeIz4EhoJ0<\/span><\/font><\/div>\n

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If you think MSTR is overvalued because it\u2019s just Saylor raising money to buy BTC, you\u2019re missing the bigger picture.  That\u2019s not what he\u2019s doing.  According to Saylor, \u201cpublic companies exist to issue securities\u201d. What Saylor is doing is cornering the market for issuing Bitcoin-backed securities.  Saylor is operating on a Bitcoin Standard. He knows […]<\/p>\n","protected":false},"author":1,"featured_media":30610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-30609","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/30609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/comments?post=30609"}],"version-history":[{"count":0,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/30609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media\/30610"}],"wp:attachment":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media?parent=30609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/categories?post=30609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/tags?post=30609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}