🔥@Strategy is exactly a Ponzi scheme, with all the risk ultimately landing on equity shareholders $MSTR

📌 The DAT model only works best when mNAV >1:
- When mNAV >1: Sell shares/issue preferred stock -> buy more BTC -> increase BTC per share.
- When mNAV <1: The shares are trading at a discount versus net asset value -> it needs to buy back shares, or sell assets to protect shareholders.
When the mNAV of the $MSTR stock gets close to 1, what $MSTR needs to do is sell BTC to buy back the shares, but Say Lỏ did the opposite.
Diluting common shareholders while the stock is already cheaper than NAV.
📌 Strategy is no longer just a company that “holds BTC”:
- Common stock MSTR at the bottom.
- Preferred stock in the middle.
- Convertible debt, dividend obligations, ATM issuance on top.
-> Bitcoin is the core of all of the above. The strategy is paying very high dividends for preferred dividends, which increases the cost of capital, so it is no longer cheap. Even if the model is meant to be maintained, the strategy has no choice but to accept a higher return (i.e., debt interest) in order to raise fresh capital.
In this way, each share sold later can buy fewer BTC. The strategy shifts from “accretive” to “defensive dilution.”
Strategy represents a business model that benefits only the founder, with the risk shouldered by shareholders—precisely a Ponzi scheme where money from later participants pays those who came in earlier, and it will eventually collapse.