Bitcoin Three Ways
CabezaB@cabezab
The idea
I believe in bitcoin's long-term case and want exposure to it in three different shapes: the coin itself, Strategy's common stock for leveraged upside since it buys bitcoin with borrowed and raised capital, and Strategy's preferred stock for a monthly dividend funded by that same business. I cap each leg at 25% of the portfolio and hold the rest in cash, which I can add to whichever piece falls the most. This isn't diversification, all three depend on bitcoin and on Strategy's ability to keep raising money, so I treat it as one concentrated idea expressed three ways, held for years.
What it owns
- Strategy borrows money and issues stock to buy bitcoin, so its stock swings harder than bitcoin itself in both directions. · Strategy IncStrategy buys bitcoin with borrowed and raised money, making its stock amplify bitcoin's price swings in both directions.25%
- This preferred stock pays a monthly dividend backed by Strategy's bitcoin holdings, providing cash while the take depends on bitcoin's performance. · Strategy Inc Variable Rate Series A Perpetual Stretch Preferred StockThis preferred stock from Strategy pays a monthly dividend and trades near its face value, providing income tied to the company's bitcoin holdings.25%
- Holding bitcoin directly is the purest way to own the bet that bitcoin appreciates over time without intermediaries. · BitcoinBitcoin itself sits at the core of this take as an asset expected to appreciate over a multi-year horizon.25%
- Cash25%