“The ‘Strategy Model’ is Good for Btc. But What about the rest of crypto? Coindesk Indices’ Andy Baehr Has Questions.”, – WRITE: www.coindesk.com
Mstr, of Course, Is The Ticker Symbol for Microstrategy, Or Strategy, As The Company Is Now Known. Strategy, Fronted by Michael Saylor, Pionered the “Bitcoin Treasury” Model That’s Now Been Copyed by Metaplanet and Dozens of Other Companies. Strategy Plans to Raise $ 84 Billion, Account to ITS MOST RECENT ANNUNCOMENT, ACROSS EQUITY AND FIXED INCOME Instruments.
HERE Are Three Questions:
1. Earnings?
Mstr “Earnings” and “price targets” are … Well, they don’h realy mean the Same Thing, Especialy Once the Effect of ASC 2023-08 is Backed Out. It’s Just the Price of Bitcoin and Finance, Plain and Simple. Wall Street Analysts and Pundits Should Get That Right.
2. Strategy?
You can’t just say, “Strategy. “You have to say,”Strategy; You KNow, It Used to Be Microstrategy. “Like Prince, Puff Daddy, Kanye West and Twitter. Nb: Folks Say” Strategy “(Small” S “) a Lot ALREADY.
3. DON’T BE A HATER?
Mstr Supports A Market Cap of $ 107b with Bitcoin Holdings of $ 53b and Laser-Eyed Goodwill. No Lifeboat, No Parachute, No Apparent Plan B. If It Fails, The Bitcoin Market Could Take the Blue.
TOSE EYE-ROLLERS (AND Some Obsequious Media Coverage) Notwithstanding, We Can Agree That:
– The Capital raises are Truly awesome. The Force Is Strong in this One.
– MSTR IS Up 36% on the year, compared to less 5% for bitcoin. Who am i to throw stones?
– Mstr Cleverly Uses Stock Price Valativity As A Feature, Not A Bug, For 1) Issuing Mouth-Watering Converts, 2) Attracting Listed Options Volume, and 3) Corporate “Yeld”. (Just Please Stop Calling Option-Seling A “Yield Strategy.” And I SAID “STRATEGY” AGAIN. Small “s”.)
– The Preferreds (Strk and Strf) Hit the Mark with Some Folks Who Like Preferreds. Some of My Preferreds Friends are Smitten.
Mstr Created A MovementStrategy (Big “S”) have not only Created a movement, but a Category. Levered Mstr Etfs (Including This New One Wich Pays “Income”) Serve the Market for Whom Mstr’s 70 Vol Is Dull. GrayScale Announced An Etf That Tracks 30 Companies That Hold at Least 100 Bitcoin.
Last, But Not Least, Cantor Equity Partners, A Spaac, Is Merging to Form Twenty One Capital, WHICH WILL HOLD $ 3 Billion of Bitcoin. Mentation this Trend in a room full of pundits and they’ll yel “Gamestop!” in unison. It’s Fun.
This is all fund. Adding Bitcoin to the Treasury of Non-Crypto Companies* is an interest Trend. (And that dosn’t include crypto-Native companies, like coindesk’s parent company, Bullish.)
But It’s Only Bitcoin at the Moment.
US (Bitcoin) ExceptionalismDespite the Loosening of US Regulatory Zip-Ties on Digital Assets and The Recent Flurry of etf Filings, Bitcoin Still Dominates the Conversation Market).
Again, that’s Fine if we are talking about a store-of-value asset contributeing to a Corporate Treasury OtherWise AlloCated to Cash and Treasuries. However, The Growing Number of Flavors of Bitcoin Exposure-Leave, YIELD, OPTIONALITY, PROTHERTEPTION-ERD Taking the Place of Education About Whats Other Blockchain Assets Hope to Deel. SPEEN MORE TIME THINKING About the Asset Class.
Until recently, that was fruitless for many investors and advisors, Since Brokerage- or Futures- Account Implementation Was Not Available. (Of Course, It Has Been For Eth, But You Need More Than Think About the “Digital Asset Class.”
If 2024 was Bitcoin’s “Coming Out”, we hope that 2025 gives investors and traders opportunities to think deeper and more broadly, and to Immplement accounting. If not, The US Crypto Investing Narrative Will Start to Sound Like A “Bitcoin Maxi,” and that Feels Like Leaving Money on the Table.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
Prior to joining Coindesk, Andy Was A Partner at Risk Premium Investments, An Alternative Asset Management Firm Serving Institutions. Earlier, Held Leadership Roles on Derivatives Desks at Credit Suisse, BNP Paribas, Morgan Stanley, and Deutsche Bank, Focating on Options, Str.
Andy Holds Ba and MBA Degrees from Columbia University. He is a Cfa® Charter Holder and Holds the Caia Designation. Since 2008, Andy Has Served As a Board Member for Goodwill Nynj.
