The essence is the "cake" content in $MSTR. To increase the "cake" content, they issue more shares or debt, and then use these funds to purchase more #BTC. However, this involves MSTR needing to have sufficient premium and investors needing to have enough confidence in BTC. During the rise of BTC, this is definitely not a problem, but when BTC enters a downward phase (bear market), although MSTR may not be insolvent, the higher the "cake" content, the lower the stock price will be.

For example, when BTC is valued at $100,000, MSTR corresponds to $400, with a "cake" content of 50%. So when BTC's value rises to $200,000 and the "cake" content is 60%, the corresponding price of MSTR should be around $860. Of course, considering FOMO and premiums, MSTR could be higher as well.

However, if BTC drops to $50,000, even if the "cake" content reaches 80%, the price of MSTR will definitely be below $400. Overall, if MSTR is viewed as the #Bitcoin of US stocks or an ETF tracking BTC prices, then there is no need to worry too much about MSTR's price, as it reflects BTC's price. But if it is purely for financial investment, then MSTR is more suitable for going long in a bull market and shorting in a bear market.

The higher the premium, the higher the returns.

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