Let’s Talk About Leverage

In Episode 11, MSTR True North Episode 11: Discover insights on MicroStrategy’s leverage strategy, Bitcoin accumulation, market catalysts, QQQ index inclusion, and fair value accounting. Key discussion points include “irresponsibly long” explained, qqq index inclusion, upcoming catalysts, fair value accounting, valuation metrics. Market context: MSTR closed at $349.64 with mNAV at ~1.94.

Market Snapshot

• Date: 12/18/24
• MSTR Open/Close: $386.00 / $349.64
• Volume: 24,244,600 shares
• mNAV: ~1.94
• Market Cap: ~$85.19B
• U.S. Market Cap Rank: 112
• BTC Held: 439,000

Chapters

• 00:00:00 — Introduction: Overview of MicroStrategy True North and its goals.
• 00:04:21 — “Irresponsibly Long” Explained: Long-term investment mindset.
• 00:09:01 — QQQ Index Inclusion: Implications for MicroStrategy and Bitcoin.
• 00:11:31 — Upcoming Catalysts: Key events and financial developments.
• 00:13:21 — Fair Value Accounting: Bitcoin adoption by corporations.
• 00:18:40 — Valuation Metrics: Understanding market perception of MSTR.
• 00:23:35 — Key Metrics: Bitcoin yield as a core KPI for MicroStrategy.
• 00:27:43 — Bitcoin Strategy: Accumulation and share value expansion.
• 00:34:35 — Yearly Returns: Zooming out for a bigger picture.
• 00:37:42 — Bitcoin Holdings: Q4 leverage ratio and growth insights.
• 00:42:04 — Capital Planning: Strategic moves toward S&P inclusion.
• 00:46:17 — Bullish Catalysts: SAB121 reapproval and political shifts.
• 00:49:41 — Leverage Myths: Addressing misconceptions on MSTR’s strategy.
• 00:53:21 — Future Funding: Vision for a 2025 capital plan.
• 00:55:32 — Stock Splits: Analysis of past splits and potential future moves.
• 00:57:56 — Ponzi Scheme Narrative: Debunking critics’ arguments.
• 00:59:21 — Convertible Debt: Exploring structured Bitcoin products.
• 01:05:04 — Preferred Stock: Risk-return profiles for investors.
• 01:15:40 — Risk Management: Lessons from option trading.
• 01:23:36 — Asset Updates: Current NAV and Bitcoin multiplier effects.
• 01:34:27 — Corporate Treasuries: Insurance companies and Bitcoin bonds.
• 01:41:38 — Bitcoin-Backed Bonds: Evolution of credit and financial strategies.
• 01:50:07 — Semler Scientific’s Options Entry: Followers evolving their Bitcoin strategies.
• 01:56:00 — Tax Relief: Corporate alternative minimum tax explained.
• 02:02:39 — Critics’ Arguments: Counterpoints to bearish views.
• 02:11:38 — Cost of Capital: Future benefits for MicroStrategy.