MicroStrategy Trade Setup

FASB accounting changes will drive Net Income

Ok so today’s update is for subscribers only, we will get into MicroStrategy but first lets just start off with yesterdays MEGA8s and Settlement sheets. As far as this week our hedge for this MEGA8 portfolio is the 514 QQQ calls. The MEGA8s hit an all time high once again as its market cap hit $18.2Tn, yea we know Apple should be first on our list, but for now we have kept it Nvidia. None the less Tesla and META were the big winners yesterday up over 3% each. The hedge ate up most of the groupings upside but let’s see how things finish out on the week:

Everything seems well bid for the equities to start the month. As far as the other markets settles, bonds were a mixed bag, the Nasdaq the big winner and Gold the big loser on the day:

Ok let’s move over to MicroStrategy, where we believe the upcoming accounting change of the FASB rules will put Net Income for MSTR well into the billions. Right now MSTR as of their last quarterly report, posted a loss of $432 million.

Under US GAAP, digital assets are typically accounted for as intangible assets. When the price of a digital asset breaches, the asset is written down to its fair value, recognizing an impairment loss. However, if the price of the digital asset regains, the asset cannot be written up under GAAP.