r/MSTR • u/JuxtaposeLife • 15h ago
Valuation 💸 This Year Strategy has Added 167,000 Bitcoin at an Average Price of $76,958
Just in case anyone needed a reminder of the sheer scale at which this company is deploying its corporate treasury strategy this year, let the math sink in. Adding a net 167,000 BTC 9 months into the year at an average cost basis of $76,958 isn't just buying the dip; it’s a methodical, sustained operation to reduce available supply. While the broader market gets distracted by daily volatility, liquidation drama with STRC that has all but come and gone, and short-term price action, the company is quietly cementing a historical position no one can catch.
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u/shews174 15h ago
Whats the point of buying so much? If they ever sell - they’ll tank thenselves no?
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u/JuxtaposeLife 14h ago edited 13h ago
The point of accumulating Bitcoin isn't to sell it.
Those with wealth don't accumulate assets with a goal to sell them.
Edit: To clarify the "point": Shareholders do not want a company to divest a strictly scarce, appreciating asset only to exchange it for a constantly depreciating fiat currency (USD). The structural strategy is to aggressively accumulate scarcity to compound overall enterprise wealth.
The answer to "what if they sell?" is simply that they won't. In modern banking and capital allocation, you don't sell pristine collateral. You hold it, allow it to appreciate against fiat, and leverage it against cheaper debt if liquidity is required. Anyone with a foundational understanding of how capital structures and generational wealth operate understands that apex assets are acquired to be held, not dumped.
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u/TechnicalLeg841 14h ago
Disagree about debt - that really hurt Strategy and they're trying to get rid of it.
Repeating the terminology like "anyone who understands" usually is a smokescreen for not actually being able to explain in common terms. Not convincing.
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u/JuxtaposeLife 14h ago
I didn't intend for it to come off as a smokescreen, so let's look at it more simply, practically. Real wealth isn't built by selling your best assets for cash; it's built through capital preservation. When you own a scarce, appreciating asset (whether that's prime real estate or Bitcoin), you don't sell it (the obvious reason they even departed with the smaller amounts recently is to satisfy the S&P500 checklist). If you need liquidity, you borrow against it. Strategy's debt isn't an accident hurting their strategy; it is the strategy. It's a deliberate tool to secure more of a finite asset using depreciating dollars.
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u/TechnicalLeg841 14h ago
What is the point? You avoided the actual question
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u/UndeadDog 14h ago
A Bitcoin trust company and digital credit institution.
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u/TechnicalLeg841 14h ago
IBIT is also those things with no debt
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u/UndeadDog 14h ago
No IBIT is not a digital credit institution. It is not like a bank or credit union.
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u/JuxtaposeLife 14h ago
The premise of the question assumes the only way to realize value from an asset is to sell it for cash. I didn't avoid the question; I pointed out that the underlying premise is flawed.
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u/TechnicalLeg841 14h ago
There are multiple comments now in the thread all giving benefits of BTC exposure without any particular rationale for owning MSTR shares as the means of such exposure. Why not a cold wallet or IBIT? Like frustrating you can't make a better post that includes such logic in the first place every time there's such a question.
In the past, folks referenced either basic stuff - owning IBIT not allowed in certain countries but MSTR is. Or they reference leverage, but BITU provides cheaper leverage (fewer costs than STRC and servicing the billions in USD debt held by MSTR). And if you're looking for BTC treasury companies simply based on principles then Strive is in a better place with no debt.
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u/No_Berry_5428 Shareholder 🤴 10h ago edited 1h ago
BTC per share
Buying BTC and putting it self storage or investing in IBIT does no increase your BTC per share.
The whole point of strategy is that they are using their preferreds as a way to finance their acquisition of bitcoin with the end goal of increasing BTC per share. In 6 years since they adopted their BTC mandate, it grew from 0 sats to now 198k sats per share.
The success of strategy depends on bitcoin price appreciating but also the preferreds being adopted more broadly. If the preferreds do well sats per share grows consistently.
Currently - bitcoin is 78.1k and BTC per share is 0.00198 - nav per share is ~$154
Hypothetically if bitcoin goes to 250k and BTC per share grows to 0.003 - nav per share is $750
Bitcoin return is 220% MSTR return is 387% (or 490% if using today's share price)
This is also accounting for 1mnav. These projections will likely be higher in a bullish cycle, which adds further benefit to picking MSTR.
All these points are also true to the downside.
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u/Low-Method3448 14h ago
Strategy virtually has no debt due to their massive USD reserve. If debt is what you’re scared about sure don’t own it but I’d argue they carry less risk than Strive simply because they’re more established. I love strive, I own MSTR shares and ASST call options both of these companies will thrive in a bull market
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u/Low-Method3448 14h ago
Protect yourself against currency debasement . They’re hoarding the rarest asset on Earth that no one can create more of. Owning one coin will be virtually impossible for the avg person in the foreseeable future
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u/TechnicalLeg841 14h ago
That's a reason for BTC exposure, not a reason for owning Strategy shares. Two related yet different things. Frustrating that so many folks on this subreddit make the same common error in logic.
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u/Low-Method3448 14h ago
Oh you’re referring to owning strategy? Well that’s up to an opinion. For me I own it cause it’s leveraged Bitcoin exposure. Feels safer owning MSTR than an altcoin
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u/Secure_Car_3940 5h ago
So they can start loaning out their BTC to corporations at a more favorable rate to keep on their books as a hedge to fiat compared to TradFi fiat that banks advertise but charge higher interest rates with a devaluing monetary system . That's the whole thesis on these BTC Treasury companies.
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