Gonna break this down, because this is important in understanding why $MSTR trades at a premium to #bitcoin   . TLDR: They are a conduit for a multi-trillion dollar mispricing of fiat capital relative to true scarcity. They can do things that neither you nor even a leveraged hedge fund can do. 

Here we go: 

#BTC    is volatile. If you add it to your balance sheet it makes your stock volatile (ie number go down and up a lot more than most stocks). 

When your stock becomes increasingly volatile, the market increasingly wants to bet on the price of your stock, which bids up the price of long term bets on your stock price (ie options).

Normally, a market marker will sell options at a risk-adjusted premium, but you, a CEO, can also issue his own propriety call options on your own stock. 

Convertible debt (ie debt that can be repaid with newly-issued stock) is for all intents and purposes a call option (a derivative that grants the owner the right to buy an underlying security at a specific price within a specified time), but also a corporate bond. 

Because your highly volatile stock has created a raging demand for these safe debt-cum-call options, people bid the hell out of them, which drives the interest rate down (ie costs you less to issue them over the holding period), allowing you to borrow fiat at rates far below the market rate. 

In other words, you’re forcing people to LEND YOU MONEY at low rates in order to buy cheap call options on your volatile stock.

Voila, your stock is now low-risk, cheaply-levered #BTC   . 

When your market cap number goes up, you can now repay your fiat-denominated convertible debt with much less dilution than at the time it was borrowed. 

Rinse. Repeat.
#MSTR #bitcoin