Category: MSTR
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BTC Debate
Bitcoin Treasury CompaniesBitcoin treasury companies like MicroStrategy use leverage and equity issuance to increase their Bitcoin per share, creating a recursive flywheel that can unravel quickly when sentiment changes MNAV (Market Value of Bitcoin compared to Enterprise Value) is a key metric for arbitrage, with extreme values indicating potential for shorting, but its correct value…
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To Short or Not to Short
Market Speculation and Valuation 🚀The S&P 500 trading at 23 times next year’s earnings is extremely overextended, signaling potential market overvaluation and speculative behavior. 💡Earnings mean reversion poses a significant risk, as historically high corporate margins could halve earnings if they revert to mean levels. 🎢The MNAV premium in Bitcoin, currently at 2.25x, has historically reached 300% before collapsing, indicating extreme retail speculation and market…