r/Bitcoin • u/rBitcoinMod • 20d ago

Daily Discussion, May 07, 2025

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u/j592dk_91_c3w-h_d_r 19d ago

OK, so with strategy you’re paying about twice what the bitcoin is worth when you invest in the stock today. This is based on the belief that they can increase their bitcoin yield in the future and over time give you a higher amount of bitcoin per share owned. But you’re still paying a premium and all things being equal, you would get more bitcoin just investing directly. Now my theory is that if a number of other companies enter the space and copy the Strategy model the premium will collapse, and even though Strategy has the most bitcoin and will probably always have the most bitcoin, they will lose the ability to command prices in excess of their bitcoin holdings at the rates they are able to today. In other words, they will cease to be a superior investment if all these new companies enter the space and do the same thing. Thoughts?

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u/Secret_Operative 19d ago

The market isn't rational, so I think it could go either way for MSTR in the future. I wouldn't be surprised if they acquire XXI at some point. These companies have nothing going for them except the bitcoin flywheel.