1. In October, the author recommended a 'long Bitcoin, short MicroStrategy' trade due to MSTR's high NAV premium and reduced borrowing capacity. 2. Since then, Bitcoin has increased by 21%, while MSTR has mostly been flat, validating the trade idea. 3. However, MSTR's NAV premium has significantly shrunk, and the company's recent convertible issuance indicates a strong interest in zero-cost convertible bonds, suggesting it's time to close the trade.
Related Articles
- Meta: Buy The Dip2 months ago
- Don't Jump The Gun, As Argan Offers Little Upside At Current Valuation2 months ago
- BITO: High Expenses And High Risk Causing Underperformance3 months ago
- Why Warren Buffett's Berkshire Hathaway Is Still Poised For Outperformance3 months ago
- Don't Buy The S&P 500, Buy These Five Dividend Names Instead3 months ago
- Wall Street Week Ahead3 months ago
- S&P 500 (VOO): Don't Buy The Dip, It's Only A Blip, And Head For The Hills If A Rally Fails3 months ago
- Amplitude: With Acceleration Expected In FY25, I'm Buying In3 months ago
- This Is A Grave Concern3 months ago
- Palantir: The Market Has Lost Its Mind3 months ago