Another good one that will get skimmed over; people will miss all associated leverage that’s discussed/shed light on.

Around the 45 min mark Saylor discusses all the easy to see associated risk. Before that, the discussion around premium equity and issuing premium converts at premium equity, is a key point. The *potential* risk is the 6 year mark. Not sure if that’s an actual number or just an example. But, he walks through it all.

At 1:05:ish he calls MSTR a “levered” Bitcoin play.

And goes over a few examples MSTY and MSTX + options which are additional ways of levering MSTR (a Bitcoin derivative effectively). So these are effectively two and three derivatives of spot. That’s a lot of leverage and a lot of ways to break - see GBTC; the arb and premium discount issues.

Putting it altogether brings some of the points we went back and forth on, to light.

Additionally, it exposes the reasoning why (IMO) MSTR trades at a premium to NAV. The MSTX and degenerate TradFi options/leverage is not all that dissimilar to the GBTC arb trade that eventually broke once the NAV got out of whack and the trade became crowded. When interest waned and big players stepped aside or actually realized the risk, the trap door opens and exponentially declined as a bear unfolded.

It’s totally fine and happens in securities but people don’t always understand the risk and think NgU until they are “blindsided”.