Bitcoin

[rickyw]

Msty just went through a reverse stock split, 5:1. And it has tanked even more since then.

 

[fmyth]

Msty just went through a reverse stock split, 5:1. And it has tanked even more since then.

And despite that investors who purchased 2 years ago are still up 56%. Time in market is always leads to greater gains than timing the market for the average investor.

 

[Dan Carey]

Guess I’ll buy at 50,000.

I would wager you'll never see $50,000. again

 

[KsRancher]

I am hoping to see $134,000 by June 2027 and I will make my exit. I bought in June 2025 and that would give me a 12% annual return for 2yrs

 

[rickyw]

And despite that investors who purchased 2 years ago are still up 56%. Time in market is always leads to greater gains than timing the market for the average investor.

Ah my mistake. For some reason I thought it started beginning of 2025.

 

[Beendare]

Msty just went through a reverse stock split, 5:1. And it has tanked even more since then.

I'n not a strictly Technical Trader but I have found that looking that the charts gives me an idea of the general direction of the asset/Stock/whatever. This MSTY 6 mo chart is telling.




Do you guys even know what MSTY is comprised of?

Nope, It's not Bitcoin, its mostly leveraged Treasuries...derivatives that are leveraged 100%.

 

[fmyth]

I'n not a strictly Technical Trader but I have found that looking that the charts gives me an idea of the general direction of the asset/Stock/whatever. This MSTY 6 mo chart is telling.
View attachment 1019925



Do you guys even know what MSTY is comprised of?

Nope, It's not Bitcoin, its mostly leveraged Treasuries...derivatives that are leveraged 100%.

MSTY doesn't directly own MSTR shares; it creates exposure using options (short puts, long calls) to mimic owning them, allowing it to earn income without buying the stock. The fund sells call options on MSTR, collecting premiums for this income. A significant portion of its assets is held in cash and U.S. Treasury securities to back these positions. When MSTR's price falls, these premiums become a large portion of the payout, leading to a "Return of Capital" (ROC) distribution rather than income from profits. Because it's giving back principal (capital) as distributions, the fund's NAV drops, meaning the ETF's share price falls, offsetting the high payouts. The high yields rely heavily on MSTR's volatility. When MSTR's price drops, or volatility decreases, MSTY's ability to generate income from options weakens, forcing more ROC to maintain payout causing the share price to further decline.

 

[2531usmc]

MSTY doesn't directly own MSTR shares; it creates exposure using options (short puts, long calls) to mimic owning them, allowing it to earn income without buying the stock. The fund sells call options on MSTR, collecting premiums for this income. A significant portion of its assets is held in cash and U.S. Treasury securities to back these positions. When MSTR's price falls, these premiums become a large portion of the payout, leading to a "Return of Capital" (ROC) distribution rather than income from profits. Because it's giving back principal (capital) as distributions, the fund's NAV drops, meaning the ETF's share price falls, offsetting the high payouts. The high yields rely heavily on MSTR's volatility. When MSTR's price drops, or volatility decreases, MSTY's ability to generate income from options weakens, forcing more ROC to maintain payout causing the share price to further decline.

In plain English, what does this mean?

 

[Beendare]

The Financial times came out with a piece [behind a paid subscription] but it can be seen on CNBC

Bitcoin’s value is zero and the scarcity argument is pretend​

CNBC interview Jemima Kelley on CNBC about the logic behind the article HERE...and it's right on the money IMO.

Even the Bitcoin trading desk folks are saying Bitcoin is weak and looking like it has another leg to drop. It would be worth watching ETF inflow/outflows as those are probably the key to direction. Mostly outflows in the last few months...but I saw one where they said it blipped up just a tad in the last week.


Now the Michael Saylor's of the world that own MSTR and a pile of Bitcoins are always going to be talking it up....which is exactly what the Financial Times is saying with their Headless Ponzi scheme comment.


Look, don't shoot the messenger here.......Lots of good recent analysis from trading desks and such if you search CNBC and Google..

 

[Johnny Tyndall]

In plain English, what does this mean?

MSTY makes money by placing bets on the price of MSTR. In order to place the bets they need some collateral. For collateral they own a lot of treasuries. If they aren't making enough on the bets they have to use some of their collateral for payouts to their shareholders. If they're paying out their collateral, their share price goes down. That's how I read it at least.