edwinbear said:

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DiabloWags said:

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You continue to fail to grasp why the notes were priced at ZERO percent given your inability to factor in the price of arbitraging this convertible with the stock options.

I repeat, this was a volatility play.

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The 0% yield on MSTR cnotes can't be explained by vol arbing alone. MSTR's IV (and by extension the value of the embedded call option) is DIRECTLY tied to its bitcoin holdings. Arbutrageurs may have VIEWED this as a vol play, but the pricing of both the cnotes and the options, ultimately, reflects mkt sentiment and demand for exposure to bitcoin's vol and upside potential.

Ignoring bitcoin's role completely overlooks the fundamental driver of MSTR's volatility.

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I wish I understood would you two guys were talking about since my only chance on owning any type of Bitcoin is by buying MSTR. Vanguard has no immediate plans to allow any crypto ownership by its customers even though they just hired an ex Blackrock executive as their new CEO. But I can buy MSTR (just put in an order that I quickly cancelled). And I'm not moving money out of Vanguard just to own some Bitcoin. MSTR seems crazy but it does own a lot of Bitcoin. I'm sort of pissed that Vanguard brokerage prevents me from buying any crypto. That's a really ****ty business policy in this day and age.