MSTR: Likely To Fall Off Due to Heavy Dilution of Shareholders
MSTR is seen as somewhat of a BTC trust given its BTC holdings, however, over the last few years we've seen MSTR engaging in the obsessive dilution of its shareholders and in recent days it was announced that they would further dilute shareholders in order to buy more BTC at the highs. I see this as being totally against the deflationary limited supply spirit of Bitcoin and in my opinion, MSTR seems to be acting as more of a trap asset for those that are ignorant of Bitcoin itself. As a result of all of this dilution, I would expect MSTR to show weakness at these highs and retrace the majority of the move up it has had in recent weeks.
I will also add that dilution of shareholders going into a halving cycle, even if you though 1 share of MSTR represented 1 BTC, now would be a really bad time to be adding more shares given that BTC itself would actually be becoming more scarce during the same period, in many ways MSTR is more like your average Binance Smart Chain Scoin with the potential to add an infinite supply while Bitcoin itself has a fixed supply that can never be increased so all in all I find MSTR to be a very bad, misleading, and dangerous way to get Bitcoin exposure.
My preferred positioning on MSTR would be bear call spreads or bear put spreads, depending on the deals, I may choose one or the other or both.
I will also add that dilution of shareholders going into a halving cycle, even if you though 1 share of MSTR represented 1 BTC, now would be a really bad time to be adding more shares given that BTC itself would actually be becoming more scarce during the same period, in many ways MSTR is more like your average Binance Smart Chain Scoin with the potential to add an infinite supply while Bitcoin itself has a fixed supply that can never be increased so all in all I find MSTR to be a very bad, misleading, and dangerous way to get Bitcoin exposure.
My preferred positioning on MSTR would be bear call spreads or bear put spreads, depending on the deals, I may choose one or the other or both.
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