MSTR
(THE REAL THING) INSTEAD OF
MSTU / MSTX
(THE 2× SHADOW CLONES)?
WHY BUY
MSTR
(THE REAL THING) INSTEAD OF
MSTU / MSTX
(THE 2× SHADOW CLONES)?
(Still channeling that Eric Kim high‑energy, shoot‑from‑the‑hip philosophy!)
1.
OWNERSHIP vs. EXPOSURE
- MSTR = Equity stake. You actually hold a slice of a living company, with voting rights, a board, cash‑flowing software ops, and a mind‑blowingly huge Bitcoin treasury. You’re on the inside of the story.
- MSTU/MSTX = Synthetic exposure. They’re swap‑driven wrappers that mimic 2× MSTR’s daily move. No stake in MicroStrategy, no vote, no direct claim on BTC—just a contract that says, “We’ll try to double whatever MSTR did today.” That’s pure representation, not ownership.
Philosophical lens: Do you want to own the camera, or just rent a zoom lens for a weekend shoot?
2.
TIME HORIZON & PATH DEPENDENCE
- MSTR thrives on longevity. Bitcoin volatility is fuel, not poison—the company can ride it out decade after decade.
- Leveraged ETFs hate choppy seas. Daily resets mean volatility erodes long‑term compounding (a.k.a. “vol‑decay”). Survive 21 years? Maybe. Maybe not. One horrific drawdown and the ETF reverse‑splits, reorganizes, or shuts.
Think street photography: walk the same block for 10 years and you’ll make a masterpiece. Sprint around with a fisheye every day at double speed? Fun, but you risk burnout.
3.
FEE DRAG vs. LOW DRAG
- MSTR’s implicit fee = negligible (normal corporate overhead).
- MSTU (≈ 1.05 %) / MSTX (≈ 1.29 %) charge you every single year for that leverage. Over decades, fees compound against you.
Tiny aperture blades eat light; fat expense ratios eat returns.
4.
SURVIVABILITY & OPTIONALITY
- MSTR can pivot. Maybe it securitizes its BTC, builds Lightning services, pays a Bitcoin dividend—optionalities bloom.
- ETFs are single‑purpose tools. They live or die by one rule: deliver 2× today. Nothing more.
5.
LEVERAGE—BUILT‑IN vs. SLAPPED‑ON
- MSTR already carries leverage (convertible debt, strategic share issuance). You get a “softer,” embedded lever that management actively tunes.
- MSTU/MSTX apply hard 2× margin indiscriminately. It’s powerful, but dumb. Like shooting every frame at ISO 102,400—spectacular when it works, brutal noise when it doesn’t.
6.
TAX AND STRUCTURE
- MSTR: long‑term capital‑gains treatment if you HODL > 1 yr.
- Leveraged ETFs: frequent capital‑gains distributions or NAV churn can hand you surprise tax bills—even if you never sell. (Jurisdiction matters.)
7.
ZEN OF RISK
Eric Kim mantra: “Shoot intentionally.” Same with capital.
- MSTR risk = fundamental + Bitcoin price + dilution. Understandable, narratively coherent.
- MSTU/MSTX risk = fundamental + Bitcoin price + dilution + daily reset math + liquidity crunch + fund‑closure probability. More variables, more ways to mis‑step.
8.
EMOTIONAL ALIGNMENT
Owning MSTR means believing in Michael Saylor’s grand saga. You’re spiritually aligned with a captain steering a gigantic Bitcoin ark. MSTU/MSTX are adrenaline tools—awesome for tactical strikes, but philosophically closer to a leveraged day‑trader’s scalpel than to a lifelong craft.
TL;DR – CHOOSE YOUR ADVENTURE
| Path | Essence | Best For | Core Risk |
| MSTR | True ownership, lower drag, indefinite life | Long‑term believers, patient capital | Bitcoin price + corporate execution |
| MSTU / MSTX | Double‑speed mirror of MSTR | Short‑term trades, high‑conviction speculators | Vol‑decay, fee drag, potential blow‑up |
Ask yourself:
Do I want to build a timeless body of work (MSTR)?
Or do I crave the thrill of rapid‑fire experimentation (MSTU/MSTX)?
Neither path is “wrong.” It’s about aligning tool with temperament, time horizon, and philosophical vibe. Whatever you choose—commit fully, learn constantly, and shoot with passion!