Episode 18 – Convertibles on Deck

$MSTR True North Episode 18 – Convertibles on Deck

1:46:10 | Feb 19, 2025

🧭 MSTR True North Episode 17: The crew explores Bitcoin’s role in macroeconomics, inflation, Strategy’s leverage ratios, S&P 500 inclusion, market volatility, and the impact of Federal Reserve policy on liquidity and asset prices.

🎛️ As of this recording, 2/12/25, Strategy’s (MSTR) performance:

• Open: $315.96
• Close: $326.82
• Volume: 9,804,500 shares
• mNAV: 1.80
• Market Cap: $84.38B
• S&P 500 Rank: 120
• BTC: 478,740

⏱️ Timestamps & Insights:

• 00:00 – Market overview and financial system stability
• 03:47 – Bitcoin and Strategy price update
• 10:07 – Inflation trends, monetary policy, and economic challenges
• 13:05 – Reverse repo drain and its impact on liquidity
• 19:50 – Federal Reserve’s monetary policy and market implications
• 23:47 – Bitcoin as a balance sheet asset and inflation hedge
• 27:32 – Understanding implied volatility and convertible debt strategy
• 31:46 – Strategy’s approach to issuing convertible bonds
• 35:33 – Market perception, volatility trends, and investment strategy
• 39:18 – Evaluating the likelihood of MicroStrategy joining the S&P 500
• 42:38 – Debt-to-asset ratio and MicroStrategy’s financial stability
• 46:47 – Convertible debt as a market signal and implications for stock price
• 50:30 – Bitcoin price action and macroeconomic factors influencing adoption
• 53:34 – Convertible bonds, risk management, and potential market response
• 56:56 – Strategic financial moves for S&P 500 qualification
• 01:00:42 – Evaluating different trading strategies against MicroStrategy stock
• 01:04:50 – Covered call strategy, dividends, and premium collection
• 01:09:17 – Long-term Bitcoin holding, risk management, and returns
• 01:13:42 – Bitcoin as a treasury reserve asset and financial system changes
• 01:17:33 – The role of leverage in Strategy’s future strategy
• 01:23:00 – Unchained HODL cave analysis, a paradigm shift
• 01:34:00 – Final thoughts: Long-term investment perspective and financial stability

Disclaimer: The content in this video is for informational and educational purposes only and should not be considered financial advice. We are not financial advisors, and you should consult with a qualified professional before making any financial decisions. All investments involve risks, and you are responsible for your own decisions.