# Episode 11: MicroStrategy True North

In this episode of MicroStrategy True North, the hosts discuss current market conditions, focusing on the performance of MicroStrategy and its Bitcoin holdings amidst fluctuating price trends. There is a strong emphasis on your commitment to long-term investments and an optimistic outlook regarding future price increases.

## Key Topics Covered:
- The significance of Bitcoin for MicroStrategy and discussing the impact of short-term market volatility on long-term investment perspectives.
- The $42 billion capital plan, its rapid execution, and the implications for future growth.
- The upcoming adoption of fair value accounting (FBA) for Bitcoin, anticipated to positively affect financial reporting.
- Community engagement through platforms like Discord and growing membership in investment clubs focused on MicroStrategy.

The discussion highlights both challenges and opportunities, emphasizing the strategic importance of their investment approach as more traditional financial markets begin recognizing Bitcoin as a viable asset.

Quant Bros

$MSTR True North Episode 11 - Let's talk about Leverage

your let me [Music] your fear 
how deep is your love is like  

the what are you How Deep Is Your Love 
light of Hit me hard again how deep is

your woo welcome back micro strategy True 
North episode what episode is this 11  

episode 11 welcome back everybody we made it uh 
how deep is your love for Bitcoin micro strategy I  

feel like uh quite a few people are getting tested 
here these days we've got a few couple a few red  

days in a row and you know what surprisingly 
equities and commodities aren't number go up  

every single day wow that's a surprise so I it's 
uh a great time to be on this call we've got some  

really great stuff to cover today we've got a huge 
agenda I feel like we could talk about this stuff  

for quite a while so I'm excited to get into it 
and see where we go so uh quick background for  

those that may be new here uh what is micro 
strategy True North micr strategy True North  

is a group of people that have gotten together 
these are people that have been at this been in  

the micro strategy trade for a very long time they 
have very material positions in micro strategy and  

they're at the front edge they're on the knife's 
edge of what's going on in this trade so this is  

a group of people that we've put together and 
the design and structure of this meeting and  

this group micr strategy True North was meant to 
be an invest it is meant to be an investment Club  

so this is like our investment club meetings that 
we're having uh we were going to have these calls  

anyway we just thought we might as well broadcast 
them to the community so everybody can hear what  

we're talking about because I think it's uh really 
valuable for the community and it's helpful to  

understand what's going on because there are 
so many nuances to this trade understanding  

you know Corporate Finance understanding how 
debt Works understanding Equity markets you  

know architecture of all of these markets and yeah 
it's it's very complicated and and we've put a lot  

of energy in research and we're putting a lot of 
energy in research out into uh the Twitter sphere  

or the the X sphere and we're happy to share it 
and discuss it and go through those things so if  

you don't like what we say I don't really care 
and this might be a great time to pass it over  

to Tim and give us our not Financial advice uh 
memo thanks Jeff uh what you hear tonight it may  

be amazing it may actually shock you that we're 
bullish that we're excited that we're looking  

through what's actually going on in the analysis 
uh but but it's not Financial advice I was on the  

phone with grain as he was driving to his house 
he's thought he was going to be 20 minutes late  

but he's on time it's unbelievable and he said Tim 
I'm bullish I'm so excited I said yeah me too I'm  

buying the dip Marathon just bought $166 million 
dollar of Bitcoin tonight as it's dipping so like  

there's nothing to not be excited about adrianne's 
got his red light on because it's a red day but  

that just means bye like if you're in this for an 
hour or a day this might not be the group for you  

so it's not Financial advice but we're really 
excited to be here and um pass it back over to  

you Jee well thank god Green's got fast cars so 
he could make it here on time right that must be  

must be the trick 20 minutes late I'm hauling ass 
I gotta make it that's right absolutely and Tim  

you make a good point right like uh you know there 
there's this community and group on X it's called  

irresponsibly long right I've got irresponsibly 
long in my title on on my X page and you know  

irresponsibly long to me what that means to me 
being long a stock means I'm long holding it  

for the long term irresponsibly long to me means 
I'm holding it forever like longer than anybody  

probably thinks that I should hold on to this 
thing and in in size and scale so I I take a very  

similar man Mantra to how I hold Bitcoin for the 
stock in terms of you know if I'm thinking about  

it for you know holding it four years plus right 
so this is a this is a something that I view as  

um you know a long-term hold so to me that's what 
irresponsibly long means so it may mean different  

things to other people and you know most of the 
chatter that we've seen uh in the ex Community  

these days has been uh very short-term thinking 
and not zooming out and taking a broad perspective  

of what's going on so just just thinking about 
the equity price for example just a start right  

I mean today closed at $349 uh e Equity price if 
you were to if you were to zoom out right um six  

months six months ago the equity price closed at 
$146 So within six months the stock price has more  

than doubled if if you've held it for six months 
that's a great that's a great return relative to  

you know any other equity in the market that is a 
fabulous return in that time Horizon so you know  

there's always this opportunity cost of capital 
and people can always think about other places to  

be parking their Capital um and there's a there's 
a lot of things going on so you know everybody  

has fomo all the all over the place and you know 
if you get bothered by this stuff or um you know  

by sailor using using the ATM and you know you're 
worried about your stock gains then you know this  

might not be the place for you and um you know I 
I think that's okay so I I I've muted more people  

this week than I have ever muted before and you 
know I I feel pretty good oh my God yeah so uh  

on the agenda tonight we are going to go through 
Catalyst and stats like we do every week we're  

going to talk about current events what's going on 
current events we're going to go uh we're going to  

talk about the $42 billion Capital plan a little 
bit talk about financial leverage uh fby fair  

value accounting uh might do a little bit of bear 
watch you know throw some bears up on the screen  

and uh yeah we'll see where we go from there so 
without further Ado I will share my screen and  

pop over to the Catalyst how do I do this where 
am I at I always get this wrong there it is bingo  

okay so we're GNA pop over to the Catalyst and 
statistics so irresponsibility long members uh  

as of today we're at 23,000 irresponsibly long 
members the mstr den which is a Discord group if  

you haven't heard of it it is uh we're at 3 978 
members in the Discord group I believe there's  

also uh some different chats within the Discord 
group so you can go look at you know uh there's  

just a basic mstr chat for like Equity holders 
there's an options chat that's really interesting  

and very active uh there is I think like an OG 
investor chat I think that is private you got to  

get into it uh so there are many ways to connect 
with people and and talk about micro strategy and  

get out Al and data and information and those 
are those are a couple of the locations where  

some of this data and information kind of Rise it 
to the top so check it out getting into catalysts  

and you know just because of the Catalyst doesn't 
necessarily means mean it's positive right we've  

got a December fed meeting today uh 25 basis point 
drop and it resulted in the entire stock market  

puking I think it's because there was a a bit of 
a hawkish tone on equities and you know there's  

you know could be so many things going on behind 
the scenes like Algos trading you know there's  

so many things that uh that come into play when 
thinking about you know how interest rates impact  

the market and how the FED uh the communication 
of those interest rates and their perspectives  

looking forward impact the rest of the market so 
you know it is a catalyst in this case it was a  

negative Catalyst and at some point we do expect 
it to kind of turn back around and we we can talk  

through that I think that's an interesting one 
QQQ inclusion and reconstitution uh as we had  

this big uh C celebratory call on Friday we had a 
100,000 people on the call where we talked about  

QQQ inclusion mstr is included in QQQ which is 
a phenomenal outcome that effectively means that  

we've got Bitcoin is now included within QQQ uh 
QQQ reconstitution is effective on December 23rd  

uh so it has December 20th year is it's effective 
at the in Market close on December 20th um and it  

is effective on Monday December 23rd so on Monday 
all of the funds that follow the QQQ Mark the  

QQQ need to have positions and micro strategy 
relative to their weight within the index does  

that mean that there will be uh a a potential 
you know Gap up we have no idea where the stock  

is going we have no idea you know how much of the 
stock has been front run we have no idea you know  

how much is how how much trading is happening 
behind the scenes there's significant increase  

in volume on the stock over the last couple of 
months and um yeah I mean who who knows where  

who knows where it goes from here ultimately the 
the concept of micro strategy getting included in  

the QQQ is very bullish long term because this 
is a a constant bid so when when investors are  

investing money in QQ Q that's a constant bid on 
all of the equities that are included in the QQQ  

index so that can result in future cash flow and 
future buyers of the stock at any price in the  

forward moving forward and into the future you 
know I I'd put out there potential price targets  

of uh you know multiples can range on uh you 
know the the price of the market cap going up  

anywhere from like 30X to to um you know 175 
X depending on you know how your view on cap  

Get Our Mobile App

$MSTR True North Episode 11 - Let's talk about Leverage

Transcription