Micro Strategy MSTR's Bitcoin Leverage Game: Who Takes the Risk and Who Profits?

MicroStrategy (MSTR) amplifies and transmits the high volatility of Bitcoin to the US stock market through unique financial operations, creating arbitrage opportunities for institutional investors. Retail investors and long-term shareholders face the risk of sharp stock price fluctuations and equity dilution, in exchange for Bitcoin's long-term appreciation potential. So, in this leverage game, who is the biggest winner and who is silently bearing the loss? The following is the content of the post of F2Pool and Cobo founder Shenyu. (Synopsis: Microstrategy will go bankrupt? Bitcoin villain Peter Schiff warns: If U.S. stocks go bearish, BTC may fall below $20,000) (Background supplement: Micro Strategy intends to "issue another $21 billion of preferred shares" to continue to buy bitcoin, but Strategy's stock price has halved from its all-time high) Background MSTR amplifies Bitcoin's high volatility by 2.5 times through clever design to the US stock market: Professional institutions (hedge funds, bond investors and option traders) take advantage of high volatility for volatility arbitrage, Capture short-term profits. MSTR received cash from the sale of convertible bonds and additional ATMs for a large amount of currency hoarding. Ordinary shareholders bear the risk of sharp stock price fluctuations and short-term downside due to high volatility and additional ATM issuances. Passively capture the "BTC yield" of increased bitcoin per share, i.e. short-term fluctuations in exchange for long-term chips. BTC holder captures continued market inflows and Bitcoin price increases. So the question is, who loses? Claude gave responses and schematics: MSTR established a mechanism to convert retail and long-term shareholders' funds into bitcoin holdings, while creating room for volatility arbitrage. Ultimately, wealth in the system flows from the information disadvantaged side ( retail investors ) to the information advantage ( hedge funds and MSTR companies ), while long-term shareholders bet that Bitcoin's long-term appreciation will offset the high risk and equity dilution they take on. Conclusion MSTR's financial ecosystem is essentially a complex risk and reward redistribution mechanism. The "losses" in the system mainly come from information asymmetry, differences in risk tolerance, and wealth transfer between participants with mismatched time periods. Related reports North Korea's bitcoin reserves increased by 13,000 coins, "becoming the third largest holding country" second only to the United States and Britain, how did hacker Lazarus impact the global crypto arms race? Microstrategy Michael Saylor: can provide a "zero cost" strategy to increase Bitcoin reserves; Grok also advised Bitwise to launch a "Bitcoin Concept ETF" to track more than 1,000 BTC listed companies, micro-strategies, mining companies, game companies. Top 10 Constituents Quick Facts Micro Strategy MSTR's Bitcoin Leverage Game: Who Takes the Risk, Who Profits? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".