[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Josh Man [@JoshMandell6](/creator/twitter/JoshMandell6) on x 140.5K followers Created: 2025-07-07 19:46:52 UTC At some point, valuation models might conclude that as long as there is ANY value in MSTR, STRK, or STRF, the implication is that STRF is as risk-free guaranteed a cash flow as ever existed because ALL of the Bitcoin supports it once the converts have converted. Theoretically the models should consider STRF's proper discount rate to approach zero. Now when this happens with a bond in such an over-secured position, the Present Value approaches the sum of all the cash flows plus the principal (so an $X coupon 5yr bond would top out at $140) ... essentially a 5yr annuity is expressed as a perpetuity MINUS a 5yr forward-starting perpetuity. The valuation of a $X perpetuity is simply 8/r where r is the reference discount rate. As the rate becomes viewed as the RISK-FREE rate in a zirp environment, value of a perpetuity could start jumping into the $1000s or$10s of $1000 or beyond, as 8/zero would indicate a liability of potentially infinite cost. This is why you normally wouldn't issue a perpetuity high up in the credit structure without running the risk of having that liability suck up the backing of all the company's assets. XXXXXX engagements  **Related Topics** [discount](/topic/discount) [cash flow](/topic/cash-flow) [strk](/topic/strk) [mstr](/topic/mstr) [bitcoin](/topic/bitcoin) [coins layer 1](/topic/coins-layer-1) [coins bitcoin ecosystem](/topic/coins-bitcoin-ecosystem) [coins pow](/topic/coins-pow) [Post Link](https://x.com/JoshMandell6/status/1942309362015559975)
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Josh Man @JoshMandell6 on x 140.5K followers
Created: 2025-07-07 19:46:52 UTC
At some point, valuation models might conclude that as long as there is ANY value in MSTR, STRK, or STRF, the implication is that STRF is as risk-free guaranteed a cash flow as ever existed because ALL of the Bitcoin supports it once the converts have converted. Theoretically the models should consider STRF's proper discount rate to approach zero.
Now when this happens with a bond in such an over-secured position, the Present Value approaches the sum of all the cash flows plus the principal (so an $X coupon 5yr bond would top out at $140) ... essentially a 5yr annuity is expressed as a perpetuity MINUS a 5yr forward-starting perpetuity.
The valuation of a $X perpetuity is simply 8/r where r is the reference discount rate. As the rate becomes viewed as the RISK-FREE rate in a zirp environment, value of a perpetuity could start jumping into the $1000s or$10s of $1000 or beyond, as 8/zero would indicate a liability of potentially infinite cost. This is why you normally wouldn't issue a perpetuity high up in the credit structure without running the risk of having that liability suck up the backing of all the company's assets.
XXXXXX engagements
Related Topics discount cash flow strk mstr bitcoin coins layer 1 coins bitcoin ecosystem coins pow