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I'm 31... Currently I keep my 401k + match + 70% of my Roth contributions in tradfi as a security blanket. An old rollover ira is 50% iBit and 50% MSTR. HSA is 100% BITB 90% of my savings is Bitcoin. 10% in tradfi/STRC as a liquidity buffer. I sleep great at night and that's what matters.
Interesting move this morning... There’s a noticeable amount of capital positioned on the short side, with heavy skew, (backs against the wall) right now which is this activity we see attempting to kick off a lower move, largely driven by the view that the traditional four-year cycle... rooted in the halving and reinforced by market psychology... will push Bitcoin back toward the $60k range or potentially lower. I suspect those short think they can compel the move lower to happen, but they need the market to follow... if they fail to accomplish that goal, the reflexive move will be fast to the upside. This might take a few days to a week to play out. My sense is that this bearish conviction (summer into fall of 2026) is grossly overstated. If price action continues to compress while supply conditions tighten, we could see a less typical outcome: an asymmetric move upward driven in part by short covering. In that scenario, the persistence of the “lower lows ahead” narrative... common in more rigid, pattern-based technical analysis... may gradually unwind. What seems underappreciated in some of these frameworks is the evolving supply dynamic. Structural buyers, including entities like IBIT, and Strategy (STRC), are exerting a real-time influence on available float, buying up billion from the supply side despite shorts pushing selling pressure with the promise to rebuy later (maybe even higher if they get this wrong). If that trend continues, it could meaningfully alter the conditions that prior cycle-based expectations rely on. I still question... how we're going to go lower, if everyone is eyeing entry below... it begs the question "Who exactly is selling to get us lower?" It's certainly not whales, or retail (waiting for those lows that may never come). With low time preference, this behavior is provocative... one way or another we're going high in the long run... it's interesting to see how the market resolves what happens between now and then (if it needs a new low to finish this bear or not). Grab your popcorn.
Have you looked into STRC? Bitcoin exposure with volatility almost completely stripped off
My problem with Strategy is that they are responsible for nearly all recent BTC inflows (10x more than all ETFs combined, 30x more than all other reserves combined). BTC price going up hinges entirely on them, and it can crash if their products fail. STRC is a great product and it's driving all their BTC purchases, but it's not sustainable in the long run unless BTC keeps going up in price over 10-30% every year. If Microstrategy is forced to reduce STRC dividends, everyone is going to dump it, causing a huge cascade, forcing Microstrategy to bulk sell MSTR or BTC. The news of that itself would cause a panic.
Stock purchases (especially STRC) from investors.
It's an emergency fund. Put it in USFR and collect a safe 3.3% ir whatever it's paying. Don't fuck around, because STRC can drop off a cliff if something goes wrong.
No one in this subreddit has heard of STRC? As a bitcoiner I think it’s an amazing instrument because it gives bitcoin exposure to people who can’t stomach the volatility and using that capital to accumulate more bitcoin. It’s genius.
STRC will takeover as a savings account like asset it is arguably one of the safest corporate bonds that will yield way higher then any bank ever would be able to beat
Yeah that’s just waay too much pressure, the price has to react, and it already started. The problem now is that STRC is designed in a way that money has to be in by end of day mid month in order to receive the dividend at the end of the month, causing the market to wait to the last minute to buy STRC, so what will probably happen is this pump subtle happening every mid month now until STRC changes to bi-weekly payments.
Personally I think that’s not going to happen. STRC is squeezing the market. In April STRC bought more than 40K bitcoins. In April alone. This trend is not stopping anytime soon.
Get off zero and start from there. As you learn more it is difficult for it to not take up more of your portfolio. Eventually you realize bitcoin is the hurdle rate. That being said the older you get and more responsibilities( family, children) you need to protect your assets and the volatility of bitcoin for large expenses ( college, home…) may not be best store of your economic energy during that time. When you need it, something like STRC could protect the value of your work around the time you need it so not subjected to bear market. Stay humble and stack sats and on your journey, you will figure it out!
Apologies but doesn’t STRC call the monthly yield a “dividend”? Are they abusing that term?
1) fuck AI 2) retail is at the mercy of YouTuber telling them the bottom will in October 3) STRC is an insanely good financial instrument for the normies and it has the potential to shape the world of finance. How do you see STRC catapulting the bitcoin price? We hit the mythical supply shock on exchanges?
Microstrategy offered a stock that proposes a regular dividend. The stock is intended to be pegged around $100. If the price goes down, they suggest they'll offer a higher dividend to attract more buyers. If the price goes up they'll sell more shares. Right now the dividend is about 11%. It sounds good as long as they can deliver. If they fail to deliver the dividend the stock will crash. The way they offer the dividend is they buy BTC. Saylor expects a 30% return on BTC, so 11% of that will be paid to the people owning STRC. If you believe Saylor's analysis that BTC will average a 30% increase then BTC is the better investment. If you don't believe his analysis then you need to ask yourself how he'll pay the 11% dividend.
The big story is not blackrock ETF or any other tradiFI bitcoin ETF. It’s STRC. STRC has no volatility with a 11,5% yield … in my opinion is the most disruptive investment instrument ever created. Most normies just can’t cope with BTC volatility…. Specially the wealth holders.
Some might argue that STRC is. I personally think it will eat the normies financial world. No volatility and 11.5% yield is insane.
This is a great question that I've been thinking about too - I think there are some clues that show this is the start of a proper recovery vs a mid-bear bounce within the 4y cycle. One clue: look at the weekly RSI and compare it to the previous cycle - it looks much more like the bear has bottomed with a proper trend change vs merely being a mid-bear bounce. Another clue: we're on our way to closing a 4th green weekly candle in this "bear market". Last cycle, we maxed out at 2 consecutive green weeks during the bear. We'll never have certainty, but I think these are some decent clues that we're looking at something different here. Fundamentally, I think this makes quite a lot of sense too because we didn't have the kind of retail-mania-driven blowoff top that characterised previous cycles - none of the classic top signals were flashing. In the '21 cycle, we had the full on retail mania run up and double-topped; we then slid 52% from the ATH in 77 days, followed by a mid-bear bounce of 46% lasting 63 days. This cycle, we've had the same c.52% decline but it took 119 days - 55% slower, which suggests that there was less froth in the market at this ATH vs the previous. We're now 77 days on from "the bottom" and the 46% mid-bear bounce would take us to $87.7k. If I'm wrong and we're still following the 4y cycle, the price will fail to break $90k and resume its downward journey - 55% slower would put this roughly 3wk away (14/05/26) and there are plenty of experts calling for this. If I'm right and the 4y cycle is dead, there will likely be a lot of indecision around $90k followed by a decent breakout, accelerated by a portion of the cycle believers flipping to "bottom's in, we're going up". The next checkpoint that will put the final nail in the coffin of the 4y cycle will be making a fresh ATH way ahead of schedule (not to mention, after "only" collapsing 50% in the "bear market"). I've stuck with the technicals, but there is obviously a rich fundamental narrative as to why the market structure is so different vs previous cycles re. retail vs institutions. I think we're seeing this play out in reduced volatility and the breakdown of the 4y retail-driven cycle. STRC is also turning into a BTC blackhole that will have a positive influence on price to put it lightly.
Cycle theory is dumb imo, block reward is less significant these days. We are tied to FED rates, wider economic outlook, risk-on appetite, M2 supply, wider banking adoption and the MSTR/STRC playbook.
The old convertible bonds do, but they’ve seen that coming for years and they can be converted to stock. The is no maturity date for the money raised by STRC.
Post is by: Bcom_Mod and the url/text [ ](https://goo.gl/GP6ppk)is: /r/bitcoin_com/comments/1st8tpr/at_their_current_pace_strategy_will_hold_1/ The numbers from Strategy's latest disclosure are worth sitting with properly because they describe something genuinely unprecedented in Bitcoin's history. On April 20, Strategy filed an 8-K confirming it had acquired 34,164 BTC for $2.54 billion: its third-largest weekly purchase ever. That brings total holdings to 815,061 BTC. At their current daily acquisition pace of roughly 774 BTC, River Financial projects they'll cross 1,000,000 Bitcoin by December 15 of this year. That's approximately 5% of all bitcoin that will ever exist, held on a single balance sheet. But the more interesting story is *how* they're doing it. Strategy has built a capital structure unlike anything in corporate finance. Their STRC preferred stock, paying an 11.5% annual dividend monthly, has become a machine for extracting institutional capital and routing it directly into BTC. River's data shows that STRC proceeds last week outpaced the net inflows of all US spot Bitcoin ETFs combined by nearly 10 to 1. This mechanism is elegant and slightly dizzying. Yield-hungry institutional investors buy STRC for the 11.5% dividend. That capital goes straight to buying Bitcoin. Bitcoin appreciates. Strategy's balance sheet looks better. More investors buy STRC. More Bitcoin gets bought. The flywheel, when it works, is genuinely self-reinforcing. And with $21 billion in remaining ATM capacity, it has significant runway left. [What the 1 million BTC milestone would actually mean is worth thinking through.](https://news.bitcoin.com/strategy-could-reach-1-million-bitcoin-by-late-2026-river-notes-strc-inflows-dwarf-etf-net-gains/) At current supply, that's roughly 4.76% of the hard cap of 21 million — and when you account for the estimated 3-4 million coins permanently lost, it's closer to 6% of the effectively circulating supply held by a single publicly-traded company in Virginia. Saylor said 2026 would be the last year you could buy Bitcoin under $100K. At the pace he's buying, he might be right for reasons that have nothing to do with macro. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoMarkets) if you have any questions or concerns.*
It does. Especially when STRC is taken into account, because STRC doesn’t dilute common shareholders at all. But you don’t have to take my word for it. You can do the math yourself. Or just look at one of the many charts of sats per share since they started purchasing bitcoin.
Their prospectus is bulletproof, and STRC is a perpetual, variable-rate preferred stock issued by Strategy. Even the "commercials" that Saylor is posting have a full page of small letters, explaining all this. It's clearly mentioned that they can dilute you, outrank you, change things, and that this involves an high degree of risk. Anybody can sue anyone but the only thing Saylor and MSTR would actually be liable is fraud. There is no fraud according to the data we currently have, something new must come to light for that.
Why write this whole post if you don't understand what you are writing? There is no forced liquidation. STRC is s preferred stock. It's not a loan. He doesn't owe back any principle. The dividend is engeneered to keep it at par at 100$, but it's not a bond. There is no legal obligation to pay a dividend. They can suspend it as any company can suspend any dividend. This will kill the product obviously, but there is no liquidations. Strategy is not FTX.
MSTR makes the bet that BTC will on average increase in value far more than the current 11.5% dividend rate. By purchasing MSTR, I’m making that same bet. I’m also pretty certain they will have no problem increasing their cash buffer, since they’ve had no problem quickly raising more than 2 billion while in a bitcoin bear market. You’re assuming they will not continue to increase their cash balance. Being last in line if they fail is the price you pay for the upside. If I didn’t want volatility and risk I would have bought STRC(like a LOT of people are). I’ll take the risk and the upside. So far that’s worked very well for me. If in the future it doesn’t and I was wrong then that’s the fuckin’ way she goes.
It’s crypto winter during a time of economic hardship; oil exploding, interest rates relatively elevated but historically low with crippling national debt has the feds paralyzed, equities at record valuations, liquidity drying up so risk assets like crypto is first to suffer, new fed chair seems bearish elected May sometime Kevin warsh, mid terms scare the fuck out of investors cause of uncertainty, wars and rumors of wars scaring people. If you follow the bitcoin cycle , you can psychologically embrace for pain from October-November where we might bottom. Predictions markets funneled money out of alt coins for alt season. On the flip side, crazy institutional plumbing has been set out, ETFs spot price, STRC challenging treasuries. Lots to be excited for when they finally turn the printers back on
watch Adam Livingston for a totally unbiased view on STRC (which I actually mostly share)
I have been interested about info on this STRC.
Course you can take your money back ya damn fool. Just sell the STRC
No, STRC dividend is dependent on the price of bitcoin. If bitty goes up, happy days. Saylor can borrow off the value of his bitcoin stack (say a 4 year loan) to pay STRC. In 4 years presumably the price of bitcoin is actually higher, so he takes another loan against the new value. And round and round it goes. The gamble is bitcoin always goes up in the long run. If bitcoin goes down and stays down for a long period of time, then he may need to sell MSTR to meet the dividend requirement. However the dividend isn’t mandatory, he can pause it at any time.
agreed, the market is totally different than in 2022. With this pullback it does not feel this way, it feels just like 2022, but it is not. In 2022 we had a lot of forced selling, this time around STRC is a BTC accumulation machine, sucking the air out of the bears!
I started out buying Butcoin, ten years ago, and only regret that I didnt buy more. My strategy was to swing trade Bitcoin by buying at below the current median price (buy the dip) then sell once it rose to 10 or 15% above the median. Rinse and repeat, hundreds of times. This strategy was designed to increase my holdings, as BTC was very volatile years ago. Of course I had to pay shirt term capital gains every year, but I didnt vare, just as day traders dont care. Now, we have better options for buying the top 4 cryptocurrencies, as the wallet storage issues and crypto taxes are a nightmare, frankly. Instead of opening a Coinbase or Gemini or other account, you can just open a Fidelity or Robinhood or Webull account instead (Webull has great offers for new accounts, too), and then simply buy ticker IBIT (Bitcoin ETF) or ticker ETHA (Ethereum ETF) or ticker GSOL (Solana ETF) or ticker XRP (Ripple ETF) after you deposit USD into your new brokerage account. A simple buy and hold strategy where you use Dollar Cost Averaging (DCA) to buy any of these 4, will allow you to hold crypto in ETFs, where you DO NOT HAVE TO DO CRYPTO TAXES. Instead, the brokerage will send you a 1099-B form at the end of each year, which is 20X easier than a complicated crypto tax return. I know, we do them every tear, and we have to use crypto tax software to summarize our gains. And here's the deal. The gains are the same essentially, minus a tiny ETF fee. Also, Coinbase or whatever exchange charges you a fee for every buy and every sale, so it works out to be the same capital gains purchasing via a crypto ETF with a brokerage account. This is a huge advantage that only recently became possible, when Bitcoin ETFs were launched, followed by ETH ETFs, then Solana, then XRP So, this was not even possible 4 yeaes ago, but it is now. Also, with a brokerage account, you can also invest in Strategy stock (ticker MSTR) and its new preferred dividend stock "Stretch", (ticker STRC), which pays an amazing 11.5% monthly dividend based upon MicroStrategy's Bitcoin holdings. So, it's now easy to have a 100% crypto based investment strategy using a brokerage account. Do it with a Roth IRA and it's an even better strategy.
If You understand how many bitcoin STRC is going to buy every month between drip day and record date you would not hold melting ice cubes.
They owe over $8 billion in convertible bonds and $1.5 billion (and increasing) in dividend obligations. Of course they don't want to sell, but if they run out of market liquidity selling STRC and MSTR to pay out this debt, what other option do they have but to sell their Bitcoin stack? After all, the Bitcoin is the collateral for the debt.
This "impressive" STRC + preferreds stack also accumulates an "impressive" $5 million a day for his dividend obligations.
Michael Saylor says he will *Never* sell. His MSTR/ STRC technology stack is actually pretty impressive.
>If I take my emergency fund (that I cant just dump into BTC directly due to the volatility) and put that into STRC. Why not? Why not 20% of the sum every month? Buying strc is IMHO riskier than stacking sats. >Yes there are assumptions here but if I take a conservative bitcoin CAGR of 21% my $6.30 daily buy will end up being worth somewhere around $20,347 in 5 years. That's a 77% return. What the return will be if you do the suggested 20% per month? >And I am not touching my emergency savings You're. You're buying strc with that money, remember?
They already have $2.2b cash in reserve, and if they're able to issue that much STRC, they'll be able to keep the reserve topped up. I really can't see btc being 50-60k in a year if they're buying this much though. Something has to give at some point. It's possible of course, but I really doubt it happens. You need 10s of thousands of coins on top of the newly minted supply willing to sell at those prices, i.e, people who did not already sell higher over the last couple of years, but then decide to sell, or become forced sellers, and I guess we must already be near the end of such sellers. !Remindme 1 year
STRC being a product that gives you returns that beat many other things if bitcoin continues to succeed, but without much volatility. The massive stack of bitcoin they already had helped make this a reality. Other companies couldn't do it because they didn't have a stack.
We’ve been in a bear market for about 6 months. From December 2025-today Strategy has raised $12.35B using ATM raises, in a bear market. They seem to be able to get the cash, plus they already have 18 months of dividend coverage in reserves. I think they’ll be topping up those reserves in the next week or two while MSTR pumps. I do agree the market will puke for a while if they suspended the dividend, or sold some bitcoin. I just don’t think they’ll have to any time soon. They don’t have to continue issuing more STRC. They could stop issuing this month if they wanted, then obligations stop growing, and the future dividends of STRC can be slowly brought down as spelled out in the STRC prospectus, by .25-.5% at a time. They may lose a few investors, but the dividend is so much higher than anything comparable that most would stay.
The thing is, it’s a snowball effect. Say he owes $3 billion in annual dividend obligations by this time next year. If Bitcoin does badly, and like you said he suspends dividend payments or sells (just a bit of) Bitcoin, what will happen to the price of Bitcoin? What will happen to the price of STRC? I think both are going to tank pretty hard, compounding the troubles. He survived 2022 by not making many Bitcoin purchases. If he needs to raise 5 million dollars a day just to pay off dividends, it might be a different story in a bear market.
I’m guessing you “learned” this from Coffeezilla who conveniently didn’t tell the whole story. STRC is liquid and can be sold on the open market like a stock, because it’s a stock.
The odds they’ll be forced to sell are low, but not zero. They also don’t have to buy back any of the STRC debt, they just need to pay the dividend, which can be suspended in times of hardship. So if they did have to sell, they wouldn’t just market dump their entire holdings because they don’t have that much debt to pay off.
Yes, but STRC only has value as long as they pay their dividends. In a world where MSTR exercises their legal right to stop paying STRC holders its value will crash like a rock
NVDA is a productive asset. STRC is not. What people are doing with STRC, or BTC for the matter, is a form of carry-trade. The debasement trade, done in the form of (apparently perpetual) arbitrage. But in strage eons everything may change...
“How is the fact that you do the same thing with STRC any different?” When you buy NVDA, you hope that the company goes up in value by producing more goods (GPUs) which are desired by consumers. If that happens, consumers will pay money, Nvidia will profit, and investors can get dividends. These dividends grow as the company grows. With STRC, you are paying for an asset which does not gain in value, it is nothing but a promise that you will be paid 11.5% annually. This money for the dividends (if you look at their form 8-Ks), only ever comes from selling more preferreds (like STRC) or more of the common stock (MSTR). Every month, this is how payments are made. The issue is, what happens when you want to take your money out? Well when people want to sell and the supply of STRC grows past the demand for it, then where does Saylor get the money to pay more dividends? If he defaults on one, it’s a snowball effect and even fewer people would want to buy STRC. For NVDA, this will never happen, as they have a product (GPUs) which will be able to produce value for them. Does this illustrate how “STRC is different”?
For those still hopeful that $60K might have been the bottom, I hate to bring this up, but we still have the Microstrategy specter looming over the market. Some people still believe it won't be a black swan event like FTX, or not have any impact at all. Go look at how STRC works. STRC shows that the Strategy's BTC gamble is showing cracks during this bear market, to the point that Strategy is getting really desperate and throwing one last do or die gambit. But STRC is also already showing cracks right from the start.
Let's all join in and buy STRC. It'll make Strategy burn through their cash much faster. We'll be fine as long as we sell before everyone else sells once the dividends start lowering. Can't be the last ones holding the hot potato.
They can, but there’s no incentive to stop paying, since they could just increase the percent return instead and sell more STRC. Just like you, they’d also be trying to sell that STRC, so they’d never cancel the dividend and make the sales impossible. They have lots of liquid dollars to increase the dividend since they have a battery of dollars. Every time they sell STRC, they receive 10years worth of STRC dividends in their battery… and so the music goes on.
Yea buddy, we all watched the coffeezilla video. Now can you explain how that’s different from any other stock? When you buy a stock, you aren’t holding it because you can get your money back in some kind of redemption of your holdings. You are holding it to one day sell to someone else for a profit, who has the same hope. Is that great fool theory? Idfk it just seems like markers to me. We buy things like assets to store value and to hope they appreciate so that we can flip them to someone else later when we need the liquidity. How is the fact that you do the same thing with STRC any different? I’m not an STRC shill, I don’t fully understand it myself, I’m just trying to understand how it works and I’ve heard this argument a few times, but it doesn’t click for me.
Just Data (Probably Nothing): Since Monday, March 30th, Bitcoin was green on 68% of days (market open to close) when Strategy's STRC was actively raising capital for them to buy BTC. On all other days Bitcoin was green just 31% of the time during market hours. The distribution of dates was about 50-50... The statistical significance of this cannot be understated. Strategy is becoming a persistent price agnostic bid, and the sellers are starting to notice. It's having a real, and measurable upward pressure on price discovery for Bitcoin itself.
I'm sorry, but you're just uninformed about STRC. It explicitly uses language separate from the other preferreds. Here is the direct filing language: > There is no guarantee for STRC of returns, liquidity, or future performance. STRC is neither a bank deposit, nor FDIC insured, nor regulated in the same way, and does not have the same regulatory and other protections as bank accounts, money market funds, treasuries, or similar instruments and as a result may not be a comparable investment. STRC’s variable annualized dividend rate as of April, 2026 is 11.50%, based on $100 stated amount; current trading price and effective yield may vary; current rate is not indicative of future rate, rate subject to monthly adjustment and may be significantly lower; cash dividend is not guaranteed. Yes, their creditability would go down, but I'm explicitly talking about ponzi economics which are not actually on display. >As for people are pretending it's risk free, I am talking about the people putting money and advocating for how amazing this instrument is This doesn't imply thinking it's risk-free. Otherwise, you could apply the same logic to nearly every single investment. Plenty of people (like me) advocate for Bitcoin while acknowledging it is risky.
I am referring to Strategy Variable Rate Series A Cumulative Perpetual Preferred Stock, which is STRC. A quick search shows what I am saying, even if they decide to stop payments they still owe their investors and they would even owe interest on the missed payments. Also as I said, miss a few payments and watch your credibility go down the drain for good. As for people are pretending it's risk free, I am talking about the people putting money and advocating for how amazing this instrument is
>They do have the obligation, they just have the chance to delay payment. This isn't true for STRC. STRC has no convertibles and no obligations and has all but rendered the preferreds you're referring to obsolete. >but for some reason people are now pretending this is risk-free. I'm not sure where you're getting this. It being called a ponzi and high-risk pretty much dominates the conversation every time it is brought up.
It's just liquidity, more money printing. Michael Saylor has a new tool (STRC) to attract his weird investors so that he can buy more BTC at these price levels. Tom Lee is getting his investors back into ETH. So, it's not surprising or unusual for BTC to reach 80k levels, even 90 because of the current buy pressure. But for sure we're NOT going to reach an ATH in 2026. That's absolutely absurd. We'll still find the bottom of this bear market in October.
Saylor has put himself in a position where he needs to raise an every increasing amount of capital or his whole position collapses. I called it the treadmill of doom over a year ago. The creation of STRC and the massive amount of issuance is likely the final speed of the treadmill before he falls off. It’s never the first 50 Billion of capital raised that’s the problem, it’s the specter of having to raise another 50 Billion more and then 100 Billion after that to keep things going that becomes the problem. They owe 1.2 Billion a year in dividends, like 1.4 Billion after this past week. They only raised a little over 20 Billion this past year, meaning over 5% of their on going capital raises are earmarked for dividends only, not adding more BTC. A few more months of this level of STRC issuance and that might reach over 10%. This is where the problem starts. They must continually accelerate how much capital they raise just to keep up with the ever increasing dividend obligations. And at some point the market isn’t gonna be there for them to do that. And then they are screwed. Also keep in mind there are only 21 million Bitcoin, and MSTR already owns 800k of them after this week. That’s 4%. They started this journey 5 and a half years ago, and the way exponentials work, they are actually closer to the end of their Bitcoin journey than they are to the beginning of it. It will inevitably implode, the only question is how big do they get before that happens. Is that 10% of all Bitcoin? 15, 20%? The more they buy, the more illiquid it becomes and the more likely they are the only real buyers.
The company openly says: "We sell STRC shares, use most of the money to buy more Bitcoin, and pay the dividends from the cash we raise or our reserves." No one is being tricked. They're borrowing money at 11.5%. Would it make you feel better if they used 100% of the proceeds to purchase bitcoin and then sell some of the bitcoin immediately to pay the ROC?
I'm not talking about MSTR. I'm talking about STRC. The dividend is the promised profit. They can only pay the dividend if they can attract more MSTR investors.
Watch STRC. If they get back to par and buy another 23,000 bitcoin in a week BTC will probably trend up.
Raising the first 100 Billion is the easy part. Raising the next 1 trillion to keep the thing going is what’s hard. MSTR has been raising a little more than 20 billion in capital the last couple of years. They currently have 1.2 billion in yearly dividend payments (and will be 1.3 billion on Monday because they probably sold 1 billion of STRC last week). So they are right around 5% of their yearly capital raises goes towards dividends instead of buying Bitcoin. That percentage will get larger and larger every year as they issue more and more STRC. At some point that percentage going towards dividends instead of buying Bitcoin will become too high and the capital markets won’t be accessible to MSTR anymore. Then the whole thing collapses. It’s inevitable because Saylor will never stop until it’s broken.
It’s right on their website. They have 21.8 months of dividend coverage. Which will drop to 20.0 months on Monday when they announce they’ve issued 1 billion more STRC this past week.
As I've stated before very few bought back then and just held all the coins. I mean I recall flipping a bunch out after watching the price run up to like $1100 then crash to $165, when it would sit in the 400-500 range for months, some days the price wouldn't move $10 all day. They had sites like [purse.io](http://purse.io) where you could list stuff on your amazon wish list, offer to pay in btc and folks would get the btc if they bought the product for you. I would offer $400 btc for like a $500 item and bought a ton of stuff like flipping the btc for a profit for stuff I was going to buy anyway. Also a bunch of giftcard sites where you got a 10% or so discount paying with btc. I still held a bunch but after that I was able to increase the amount I had the next cycle. I sold at like $8500 and rebought at like 4k and then sold at 50k and rebought at 30k and sold at 60k and rebought at 20k. I sold off what I wanted to sell this cycle at 120k. I even publicly called 125k on reddit for a top this cycle, I also called the dip below the previous ATH of 19600. I think this cycle we could go down to 48k, but I have bids at 60k, 55k 50k 45k 40k etc. The deeper it goes the more I buy, if we don't go down there I have enough btc and I want to cash flow so I will use the cash to grab some div etfs and I am currently flipping the cash into STRC once a month to grab the div. Cash flow has always been hard with btc. That is getting easier.
Selling STRC directly gives them cash, so as long as they can keep selling them they can keep getting cash. But yes that is exactly how a ponzi works which is why it cannot survive
>t won't be MSTR, it will be everyone holding STRC. It will be both. If/when STRC fails, MSTR loses all credibility. They will hardly be able to raise another cent from investors, which will likely force them to sell BTC at some point, which will trigger a death spiral tanking both MSTR stock and also BTC itself.
STRC dividends are paid by selling new shares of MSTR. The new investors are those buying new shares of MSTR. The old investors are getting STRC dividends from the new investors.
They HAD enough cash to pay the dividend for years, but for every $1B in STRC he sells, the ongoing annual dividend obligation increases by $110M. He's been making it rain lately and that additonal cash will have to come from somewhere.
Yeah, the recovery rate for victims in a Ponzi scheme is usually better than what STRC investors will be left with if Bitcoin crashes. Ironically, a traditional Ponzi might be safer.
> The con artist pays the high returns promised to their earlier investors by using the money obtained from later investors. > > This does not describe STRC. In the scenario you described, new investors put in money and wait for returns. Meanwhile their money is distributed to old investors disguised as returns. Rinse and repeat. That's not how STRC works at all. All investors, new or old doesn't matter, get the same dividend at the same time.
That's not the definition of ponzi scheme. It's an extremely reductionist version used to make a dishonest argument. What you're doing, is no different than saying an elephant has legs, and a human has legs, therefore they are the same. A ponzi scheme doesn't have an underlying asset backing it up. You can argue that MSTR will be forced ro sell their bitcoin to make investors whole, but a ponzi scheme is fundamentally different. You can also make the argument that investors are taking on the risk of bitcoin losing value when they invest in STRC, but that is a know risk. Hopefully, this clears things up for you.
A lot of people here (reasonably!) think this is a pyramid scheme. I see it slightly differently - It's a BIG bet on the idea that bitcoin will gain widespread adoption. This bet absolutely could fail and MSTR + holders would be big losers. I think most folks who buy STRC/MSTR actually know this and are betting on a similar future. I think Saylor is making this bet, believing it will play out as he expects but understanding that there's a chance it won't. Note: I do not hold STRC, but I've been considering it. I likely will choose to just buy BTC instead, but I find his play interesting and worth investigating.
Oof, what a terrible response video. It did absolutely nothing to debunk Coffeezilla's criticism, in fact if this is the kind of people supporting Strategy then I am more sure than ever that it will crash and burn. The majority of the video is just him completely missing the point because he didn't even bother to prewatch Coffeezilla's video to know what points he will be making. So he is essentially just improvising responses to arguments before actually *hearing* the arguments he thinks he is responding to, making the whole exchange worthless. Pretty much the only counter-argument he actually makes, is that everyone buying STRC knows about the risks. But it's not really an argument, it's just a baseless assertion. Where is the evidence that the laypeople that this product is advertised to understand what they are buying? The insane AI-generated beach video certainly implies otherwise. As does the fact that this kind of asset is quite novel and untested, which he makes a point of himself. Are laypeople just supposed to automatically understand the ins and outs of a brand new, untested investment asset? Coffeezilla's point is that *even though* all the risks are *technically* disclosed, the asset is marketed towards the layperson who does NOT necessarily understand it. And that makes perfect sense to me. Does he not think that it is very likely that many people are going to just see the 11.5% number and the claims of price stability, and be tricked into thinking that it's similar to other stable interest-bearing products that he is used to, like a money market fund or even just a bank account? I think he *does* know this, and I think he also knows that Strategy knows it, and that they are in fact banking on exactly that happening. I would go as far and say that I think his dismissal of such an obvious thing amounts to lying.
They increase the dividend when the price drops to incentive buying it back up to $100. The problem is, as soon as yhe market loses confidence in STRC ability to pay, the whole thing will collapse because the promise of a 10,000% dividend doesn't mean much if you know it won't get paid out.
Yes and no. People are going to get burned, but it won't be MSTR, it will be everyone holding STRC. MSTR is juts going to walk away from their dividend obligations at some point and leave everyone else holding the bag while they ride off into the sunset. To be clear though, they probably won't have a choice. It will be that or insolvency.
Buy STRC, Saylor buys bitcoin. Saylor borrows against the value of bitcoin (YUGE) to pay dividend (smol)
1. Wrong, bitty drops, dividend goes up as Saylor can buy more bitty with your cash. This is already happened many times hence why it’s currently at 11.5 2. Bitty goes up then happy days. Don’t put all your eggs in the STRC basket. Buy STRC and put dividends into MSTR.
If BTC goes up more than 11% in a year, by owning STRC you're just making money for Saylor. I'd much rather just stack the underlying asset BTC or IBIT.
Holding STRC is suboptimal when BTC price moves EITHER up or down by a lot. 1. If BTC price goes **down** too much, dividends will likely drop. Its holders will be unhappy if the dividends are less than what can get risk-free from an online savings account. 1. If BTC price goes **up** too much, holders will be upset because they're being paid a much smaller dividend than the price increase in BTC. They'd be better off holding BTC. I think fine to hold STRC if you think BTC price isn't going to move much. Just be ready to dump STRC if it looks like there might be an investor run if the price of BTC either drops by a lot or doesn't move much for years, and they're forced to lower the dividends rate.
They have enough to pay dividends for 2 years, but the $1.5B cash is also needed to pay off the other $8B in debt maturing over the 4 years. And the more STRC shares are issued, the quicker that cash runs out. MSTR price is currently far too low for most of the $8B in debt to convert into shares. They could reduce the dividend rate, but if they reduce it too much, then holders will sell in mass.
Mstr probably has about 8 months of dollar reserves unless he uses the next sell round to shore it up. STRC alone requires $5B+ a year.
It’s amazing to read so many self assured comments from people who have absolutely no clue about how STRC works.
STRC is the absolute best for cash-flow, 11.5% return of capital dividends is insane. Plus, you know the financials of the company entirely, so knowing that have over 40 years of dividend runway is super convincing
Dip is coming or already hapened. Maybe 59k maybe 40k 50% each But STRC man.. STRC is a strong base
The fact he has to step in every month to repeg it is crazy. You have to be even crazier buying this shit. He issued billions of new STRC to suckers. People arb trading the dividend are front running ex div days and then immediately dump the next day.
If not, it just means more cheap Bitcoin for STRC.
I agree with you and I really think STRC is such a game changer. It is going to take away some of the volatility that we are used to. See you on the moon 🌕
People are underestimating what is starting to happen with STRC. Strategy bought over 25,000 BTC in two days. STRC is still ramping up, month over month. And even at the current pace, that is actually enough to change the whole structure of the market forever.
1. STRF (Series A Perpetual Strife Preferred Stock): The most senior preferred share, designed to be overcollateralized with lower volatility, often considered similar to investment-grade securities. 2. STRC (Variable Rate Series A Perpetual Stretch Preferred Stock): A unique, high-yield flagship series with a dividend rate that adjusts monthly to keep the share price near $100. 3. STRK (8% Series A Perpetual Strike Preferred Stock): The only convertible series, with each share convertible into 0.1 shares of MSTR common stock, positioned between STRF and STRD in risk. 4. STRD (10.00% Series A Perpetual Stride Preferred Stock): The most junior preferred stock, sitting directly above MSTR common stock in the capital structure.
STRC isn’t banked on “crypto mooning”
You call a 50% CAGR since Jan 1 2014 bad performance? Thats at the lows of this cycle. If that’s bad performance then S&P 500’s 11% CAGR over the same time frame must be garbage. I get the whole “past performance doesn’t dictate future results” mantra. Obviously I am not assuredly saying Bitcoin will continue at that pace. But to argue that it will suddenly become a bad investment, when historically it’s been THE BEST investment, is asinine. Same for MSTR. It is up, at today’s valuation, 700% since they adopted a Bitcoin reserve strategy. 🤷 My money is on BTC and MSTR. My cash is in STRC, earning a monthly dividend of 1%. And I’ve been in this asset class since 2016.
Right, so absolutely no one is interested in what STRC has to offer AND they've sold $6.3 billion of it? What's your point exactly?
The price is not supposed to move much, but trying to stabilise the price using interest rates is a disaster waiting to happen. If things start looking bad for Strategy and the STRC price drops, then they're forced to raise the interest rates, which puts even more pressure on the company, leading to a downward spiral.
Yes, they go up and down in value over their lifetime, but bonds return your initial investment AND pay a fixed interest rate over a fixed period. STRC has a variable rate, no fixed period and doesn't return your initial investment. They're not remotely similar.
>But I do think strc is a solid financial instrument. Basically do you believe that btc will out perform 11.5 average over the next few years and I think it will. Also some people can’t stomach the ups and downs so this is good for them Wrong. It's an absolutely terrible investment. At 11.5%, it's going to take you 5 years just to make back your initial "investment" (that you don't get back), more if you include inflation. Meanwhile if you had invested in Bitcoin and it only goes up at 5% you've made 28% and you get to keep you initial investment. If Bitcoin goes up at 11.5%, you've doubled your money. You'd have to be a compete idiot to choose STRC over Bitcoin.
How do you think bonds work? They decrease in value as rates go up and increase as rates go down… some of his preferreds do just that. STRC in particular is different than a bond. Regardless, the thesis is bonds provide stable income to a portfolio and his preferreds provide an even higher yield while also being sheltered from the volatility equities have, just like bonds.