Another Big MSTR Buy & STRK Preferred ATM At All Time High + Metaplanet's Massive 55.5% Q2 BTC Yield

Summary

In this video, the speaker discusses Bitcoin acquisition strategies, focusing on the unpredictable buys by prominent figures like MicroStrategy's CEO, Michael Saylor, and MetaPlanet's increasing Bitcoin holdings. The speaker highlights the volatility in Bitcoin stock prices, the role of ATM (At the Market) strategies, and the differences in growth between MicroStrategy and MetaPlanet. Emphasizing MetaPlanet's faster Bitcoin accumulation due to its smaller size, the speaker explains why it's considered a riskier but potentially rewarding investment. The video wraps up with a personal note on the speaker’s investment approach, urging viewers to subscribe for more insights.

Takeaways

• 😀 Despite a bullish signal, the recent Bitcoin buy was smaller than expected, with only 765 million worth (7,390 Bitcoin).
• 😀 The unpredictability of Bitcoin purchases and stock movements is a key factor, making it difficult to predict the exact amount of Bitcoin to be bought in any given week.
• 😀 Using media to create volatility is a strategic approach to drive stock value, fostering increased demand for options plays on the stock.
• 😀 The use of convertible debt is likely to decrease, as other methods, like fostering volatility through stock unpredictability, are proving more effective.
• 😀 The three types of debt issued by the company are strike, strife, and bonds, with a shift towards strike options likely over convertible debt.
• 😀 Strike options have a 10% convertibility feature, allowing them to serve a similar purpose to convertible debt, giving them a perpetual option once the stock price hits a certain threshold.
• 😀 There is significant unpredictability in the ATM (at-the-market) setup, evidenced by fluctuating purchase amounts each week, ranging from 7 million to 59 million.
• 😀 Long-term investors should focus on consistent, year-after-year Bitcoin acquisitions, rather than worrying about weekly fluctuations in buy amounts.
• 😀 Bitcoin prices typically experience a drop between Sunday night and Monday morning due to Asian market influence, but often recover afterward.
• 😀 MetaPlanet, a company purchasing Bitcoin at a rapid pace, is seen as a high-risk, high-reward investment due to its smaller size compared to MicroStrategy, but it is expanding its Bitcoin holdings quickly.
• 😀 MetaPlanet's price-to-NAV multiple is 2.7, which is slightly more expensive than MicroStrategy's, but justified by its faster Bitcoin accumulation relative to its size. The company's Bitcoin yield could potentially triple by the end of the year.

Q & A

What does the speaker suggest about predicting the amount of Bitcoin purchased?

The speaker acknowledges the unpredictability of the amount of Bitcoin being purchased. Despite bullish signals, the amount bought was less than expected, showing the difficulty in forecasting purchases.

How does the speaker view the role of media and volatility in stock price movements?

The speaker believes media is used to create volatility in the stock price, which can drive it up. The volatility is seen as beneficial for traders who engage in options plays on the stock, making the stock more valuable.

What is the speaker's opinion on convertible debt versus other strategies?

The speaker suggests that convertible debt will no longer be as common, as the unpredictability of stock buys has proven to be a better way to foster volatility compared to issuing convertible debt for hedge funds.

What are the three types of debt that the speaker mentions, and how does he categorize them?

The three types of debt mentioned are strike, strife, and bonds. The speaker believes that the focus will shift towards using 'strike' more often instead of convertible debt.

What is the significance of the 'strike' instrument mentioned?

The 'strike' instrument is important because it has a 10% convertibility option. The speaker believes it serves a similar purpose to convertible debt, offering a perpetual option to convert at a specific price once a stock hits a target price.

How does the speaker describe MetaPlanet's approach to Bitcoin acquisition?

MetaPlanet is praised for its rapid growth in acquiring Bitcoin, with the speaker noting that its ability to quickly grow its Bitcoin holdings makes it more attractive compared to MicroStrategy. They are able to increase their Bitcoin bag much more quickly relative to their size.

What is the speaker's view on MetaPlanet's stock price in relation to its Bitcoin growth?

While MetaPlanet's stock is priced at a higher multiple (2.7) compared to MicroStrategy, the speaker sees this as justified given MetaPlanet’s faster Bitcoin acquisition. The company is increasing its Bitcoin holdings at a much higher rate.

What does the speaker say about the risk profile of MetaPlanet versus MicroStrategy?

MetaPlanet is considered a riskier play due to its smaller size, its OTC nature, and the additional fees involved in buying the stock. However, it offers higher potential rewards due to its faster Bitcoin accumulation.

How does the speaker plan to allocate future investments in Bitcoin-related companies?

The speaker plans to allocate their new money bucket primarily into MetaPlanet, given its faster growth and smaller position size compared to their existing investment in MicroStrategy, which is a larger and less flexible position.

What role does unpredictability play in the speaker's investment strategy?

Unpredictability is key in the speaker’s strategy, as they believe that the volatility created by unpredictable Bitcoin purchases can drive stock prices up. This unpredictability helps foster a profitable environment for long-term investors, even if short-term traders are caught off guard.