#Investing in US stocks can lead to wealth #The road to wealth in cryptocurrency
The combination of bitcoin with MSTR is a brilliant move.
My friend is also a legendary figure, once a senior executive at Google, later fully devoted to cryptocurrency, and has become financially independent after a few years. His analysis of MSTR. Why does MSTR's stock rise higher than BTC, and how does its leverage work? MSTR holds an average of bitcoin between 0.034-0.04 million, combined with the fact that MSTR is a regulated public company, many traditional funds restricted by law from investing in bitcoin can invest; and MSTR can borrow funds at an annual interest rate of around 1%, borrowing 4 billion US dollars would result in an annual interest of 40 million, while the average annual increase in bitcoin is 20%-30%, enough to cover the 1% interest and more. Since using stocks or bitcoin as collateral, as long as the leverage ratio is below 30%, even if it falls back to 0.09 million, its cost is only around 0.04 million, no worries at all. If it keeps rising, its leverage ratio keeps decreasing. When it reaches a certain point, it can borrow cash again to buy bitcoin; currently MSTR has a negative P/E due to only buying without selling, resulting in a loss of 1% interest. In this scenario, MSTR has every reason to rise, its biggest risk being bitcoin going to zero, but bitcoin has already been widely recognized, this scenario is unlikely.
🤑Regularly buying into MSTR, I agree with his algorithm, within 10 years, in the worst case scenario, the price of BTC should be around 0.4 million per unit, with the average price around 1 million.
101884353 : Should I directly buy bitcoin (afraid of forgetting passwords) or can I also buy bitcoin eft code GBTC? Thank you.