If Microstrategy, trading at 2x mNAV, invested 5% of its Bitcoin into a new Treasury company, which then traded at 6x mNAV - that Bitcoin would be worth three times as much
If that smaller company then grew faster than MSTR, that would compound
That's Nakamoto's strategy
If MSTR (2x mNAV) allocated 5% of its BTC to a new treasury company which then traded at 6x mNAV
That company then grows 500% vs MSTR’s 20% in a year
That 5% allocation becomes equal to 90% of the original market cap of MSTR
@LynAldenContact Look someone was always going to do it so it might as well be us
Addressing some comments
"Works in a bull market but not a bear"
Two things can be true-
1) Things which go up the most, with higher volatility, benefiting from mNAV expansion *will go down more* when that inverts
2) Those assets can still be way higher and better off than they would have been if they didn't do the strategy that gave them the higher vol
855
338.35K
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.