MSTR borrows money at 0% interest and buys BTC every quarter. When companies like MSTR buy and HODL, the price usually goes up.
BTCs Spiral: When price goes up, MSTR share price goes up. When share price goes up, unrealized gain goes up, No margin call at all - instead MSTR borrows more money and buys Bitcoin. Bitcoin price goes up. This is like a spiral that can end up in an exponential function.
Miners are selling everyday: Only reason BTC isn't going exponential is because miners are selling daily at Spot price. Miners are now making 2X the amount as compared to what they made a year back. Why would they not sell and make 2X revenue? That's why miners stock price goes 3X when BTC price goes 2X.
Conclusion: Companies like MSTR and Mining company stocks make you more money that BTC itself if you can buy at the start of bull run.
If there is sudden price drop, Companies like MSTR and Mining companies plunge more than price of BTC itself.
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