Nostr notes by JayPowPow

Does that make sense? It's not tax efficient so would only be ...

2025-02-17T03:49:47Z

In reply to nevent1q…fxhc
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Does that make sense?

It's not tax efficient so would only be worth consideration if you're older and value cash flow over appreciation, if you can only buy preferred stock and can't buy common stock MSTR or Bitcoin, or want to get cute in a tax advantaged account and ibit/MSTR aren't unique enough

Sorry, it's $1000 not $3000. That's because you can ...

2025-02-17T03:47:27Z

In reply to nevent1q…d8vk
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Sorry, it's $1000 not $3000. That's because you can convert each STRK share into 0.1 shares of MSTR common stock whenever you want. Because par value is $100, MSTR common stock would need to get to $1000 for that to become worthwhile.

So imagine a number line from 0->infinity and that's MSTR stock price. There's a dividing line at $1000. Below that, you get $8 annually for every share of STRK you own. Above the $1000 MSTR stock price, it becomes worth converting STRK to MSTR stock

So it's similar to a perpetual bond and a $1000 call option without an expiration date

Microstrategy preferred stock. Think of it as a perpetual bond of ...

2025-02-17T02:57:11Z

In reply to nevent1q…n0ej
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Microstrategy preferred stock. Think of it as a perpetual bond of 8% and a perpetual call option. I think the strike price on the perpetual call option is $3k.

So you get 8% as long as MSTR is solvent. And if it goes over $3k you can convert it to real stock.