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000:0 DON’T SKIP (Important)
00:37 Why Did We Buy it?
12:55 Distribution Decrease
38:48 Using a Credit Line
45:27 Covered Calls vs. Index Funds
01:03:57 Selling USCL
01:12:32 Management Fee’s
Gary Gill and Adriano discuss their $400K+ investments in MSTE from Harvest Portfolios, a Bitcoin-related ETF, and delve into the intricacies of investment strategies, market dynamics, and personal conviction in investing. They explore the implications of distribution changes, the importance of understanding covered calls, and the long-term potential of MicroStrategy as a company.
#passiveincome #MicroStrategy #Bitcoin #canadianinvesting #etf
Legal Disclosure: I’m not a financial advisor. The content in this video is for entertainment and informational purposes only. Always consult a licensed professional before making any investment decisions. The stocks I discuss are not investment recommendations. I’m not responsible for any losses you might incur from following my examples. Remember, investments that aren’t FDIC insured can fluctuate in value. Please invest wisely!
I love the grounded reality of this channel!!!
Retirement took a toll on my finances, but with my involvement in the digital market, $47,000 monthly returns has been life changing. AWESOME GOD♥️
I own MSTE and it makes up 5% of my TFSA Hey Garry still love your channel as your set up with the earth tones and drinking your beverage makes you look like a late night talk show very cool. Hey Garry what strike price do you have to sell MSTE ? And percentage of your holding do you wanna sell as I understand you wanna build up your HBTE.
Great conversation gentlemen. Unscripted and addressing the common concerns of the average investor without belittling anyone. Thanks for posting this
This is one of the few times I feel we have a different view. I love utilizing debt. I was doing the smith manoeuvre with my house now paid off and using 200k for even extra stock. My growth is double what I owe plus I can claim my interest on my taxes. I also started using a small amount of margin but only 10K. The more tax saving I can get on top of growth the better. I also would never recommend someone to do it without doing their own research, I don’t even mention it to anyone as if you’re not organized and willing to take risk it can burn you.
Sold my MSTE nah
Funny, I bought both MSTE and MSTY on the recent pullback. With the distributions, I’m buying VFV, how crazy is that idea lol
Awesome podcast, love hearing you and Adriano talk. I actually found Adrianos channel from the first time you had him on. Fyi, JJ and I will be dropping one this weekend!
The Harvest MicroStrategy Enhanced High Income Shares ETF (MSTE.TO) provides exposure to MicroStrategy (MSTR) stock with approximately 1.27x leverage (based on recent holdings data showing 126.9% allocation to MSTR, offset by ~26.3% net borrowing). It also overlays covered calls on up to 50% of the MSTR position to generate monthly income, which can partially cap upside on that portion during sharp rallies.
For this hypothetical, we'll estimate MSTE's net asset value (NAV) at an MSTR price of $1,000 USD, assuming:
– No rebalancing of leverage or options positions (real-world management would adjust dynamically).
– Minimal net impact from options (their current value is small at -0.6% of NAV; a massive ~3.6x MSTR rally would increase call liabilities, but active rolling limits long-term drag).
– Fixed borrowing in CAD terms.
### Key Current Data (as of October 29, 2025, closest available):
– MSTR close: $275.36 USD
– MSTE NAV: $10.23 CAD
– USD/CAD exchange rate: ~1.394 (so MSTE NAV ≈ $7.34 USD equivalent)
### Calculation Steps:
1. Price multiple for MSTR: $1,000 / $275.36 ≈ 3.632x
2. Effective NAV multiple for MSTE (accounting for fixed leverage):
Leverage factor (L) = 1.269
New NAV factor = L × 3.632 – (L – 1) = 1.269 × 3.632 – 0.269 ≈ 4.344x
(This formula derives from new assets = old assets × multiple, minus unchanged debt: L × old NAV × multiple – (L – 1) × old NAV.)
3. Projected MSTE NAV: $10.23 CAD × 4.344 ≈ *$44.45 CAD* per share
MSTE's market price typically trades near NAV (recent close: $10.28 CAD). In a real scenario with such a rally, distributions, option adjustments, and rebalancing could alter this slightly—likely toward the lower end if covered calls significantly cap gains on half the position. For context, MSTR at $1,000 would imply ~263% total return from current levels, amplified to ~334% for unadjusted MSTE leverage (before option effects).
Thanks for the financial Advice guys! I'm going all in!
Question about price decline and NAV erosion, wouldn’t I just be able to look at my invested capital compared to now and know how I have performed? I bought 1542 shares of ULTY in July for $9650. I DRIP my shares. I now have 1975 shares but the MV is $9622. I am down $2500 on the investment but when I look at invested capital I’m down $28 from my initial investment but have 400 more shares now. That looks like erosion to me…