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Strategy as financing franchise

Bond investors are generally considered more sophisticated than stock market investors (there’s more math involved, for one thing) — and no one has ever accused professional bond investors of being less sophisticated retail stock market investors.

But a recent paper that does the math on Strategy’s valuation suggests they might be.

Equity investors, it finds, are paying the right price for Strategy’s equity — but only because bond investors are paying the wrong price for Strategy’s bonds.

This makes Strategy a “financing franchise” that…

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