Dislikes MSTR due to share dilution used for funding and dividend payments, which exacerbates downside risk relative to Bitcoin.

Micro Strategy they bought Bitcoin but how do they fund it and also Wall Street what is Wall Street doing?

Let's talk about Micro Strategy for a little bit, folks. Uh, Micro Strategy, I was originally a Bob Dylan song. I I guess I am a youngster. I'm sorry I don't know your 1920s reference.

It's 50s, I know. All right, let's look at Strategy. Strategy. This is their 13 uh F filing for their form 8K. So it's 8K here. Uh you see section 13, but let's uh keep scrolling here.

So form 8K, what's what's their 8K form here? Well, it's just breaking down what they did. So they sold stock. They sold over a million shares here. They got $246 million. So what does this mean in simple terms?

They diluted their shares to raise their cash. What did they do with that cash? That's the big question. Well, they bought 1600 Bitcoin. So, they ended up spending 142 million, average price of $85,000.

Now, remember, they got 240 million. They only spent 140 million on Bitcoin. What did they do with the rest? Well, they bought back some of their STRC, but they spent more than the hundred million.

So, they actually dipped into their cash pile. STRC isn't trading at $100. And they actually spent an additional 48 million to buy some back of uh the STRC stock. And this is not great, folks.

They had to spend 22 million out of their cash reserves to fund the dividends on its preferred stock. So they have the Micro Strategy stock. Then they have another stock that's supposed to be around $100 that's supposed to pay around 10%. 10% yield, very close to 1% a month.

And so every month they have to come up with money to pay their shareholders of that STRC. So, uh, you know, I I'm just not a big fan of them diluting their stock. I'm not the biggest fan of Micro Strategy.

When Bitcoin goes up, sure, it goes up higher. But when Bitcoin falls, it also falls harder. So, me, I'd rather just buy the orange coin. I'd rather just buy Bitcoin.