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We all know fiat will continue to print and plebs may notice STRC yield of 11%. It will boost Bitcoin.
Nice. Looks like a good plan. If the divided continues to pay out and the stock price stays $100 +/-5% over the next few months, I don't think I'll be able to resist shifting from 70/30 (MM/STRC) to 60/40 or even 50/50. I don't have any IBIT yet, but currently daily DCA spot bitcoin on River.
Throw in a cup of MSTR, STRC
The difference between BTC and MSTR is that Strategy can dilute the piss out of their stock to buy more Bitcoin, which increases the value of their stash while diminishing the value of their shareholders. As long as he's buying while the price of BTC is flat, their share price will continue to fall as he uses their shares/STRC as an A.T.M. for funds to keep buying, unless a wave of speculation suddenly rushes in to Strategy.
I’m totally diversified: BTC, MSTR, MSTY and STRC. Let’s fucking go!
MSTRs yesterday: oh we're still in MCSI and Daddy Orangeman is starting wars it's moon time baby! Today: yeah, I guess that MCSI guidance still limits Saylor but uhhhh STRC has 11% dividend you're all morons blaaah
Invest in growing businesses, save in Bitcoin. In your perspective, that saving is "investing" but Bitcoin is not just speculation anymore but store of earned value. Work, save in Bitcoin, use income to invest in actual growth companies where business is behind or broad market funds. It's the best equilibrium. Also, for "cash at hands", you can use STRC in the FIAT world.
MSTR is still technically up, and touched as high as 170 today. Though Saylor probably took that opportunity to sell shares / dip into STRC to take out a nice big chunk of cash for his next BTC purchases, helping to drag the stock down. It *also* doesn't help that Bitcoin is down like 3% from yesterday's closing, if you hadn't noticed. They're kind of correlated.
I am still 50/50 between STRC and SWVXX atm, but I think about that split a lot and will likely move more towards 75/25. If you look at their cash reserves I see no risk of them not paying their dividends for the next 2.5-3 years (2.2B in reserves w/ an 839M annual obligation). Also, I buy IBIT with the STRC monthly dividends as one more DCA mechanism.
Did you end up moving all you emergency cash into STRC? I ask because I just moved 1/3 of my emergency fund to STRC. Going to watch and see if the dividend rolls in reliably over the next few months to determine whether to up the proportion. But I'm new to it, and haven't even gotten the first dividend yet.
I'm trying something similar with JEPI, PFF, XYLD, and STRC. If anybody sees anything wrong with any of these I'm open to hearing opinions. From my research they seemed stable enough to make a small investment. Hopefully I don't get burned.
Check out STRC from strategy. Its more tax advantageous compared to covered calls etfs
That’s true, he was charged for violating accounting rules 25 years ago. But he didn’t actually violate any rules, every other tech company was doing the same thing at the time. Every other tech company went bankrupt at the time, microstrategy survived. Because they needed to charge someone with something, the sec fined him for fraud, but he didn’t do anything wrong, he just declared accounts receivable as income which was standard practice, but not fraud. Now, he’s operating completely within the rules by declaring unrealized bitcoin gains as income and STRC dividends as tax deferred since they are declared as Return of Capital. He’s doing sophisticated accounting practices, but it isn’t fraudulent or illegal, just like last time.
The actual stock doesn’t make sense but the other tracker symbols they offer do. STRC 11% safer risk return then risking it in bitcoin. If you have money you were planning on throwing into a short term cd, this is a way better offer. Maybe not long term but for 3-12 months. Easy win.
STRC is a different type investment than that of BTC, but the underlying BTC is what drives the ability for them to give 11% rn. Im really liking their products, just gives me a lower level of risk and some more cash flow
They’re buying with other people’s money. If the whole thing blows up they’ll still be very wealthy. After looking into MSTR and STRC I really don’t see the benefit of the extra company risk vs just buying BTC. But seems like MSTR is approaching a good entry / low point so not sure if I should allocate some as a bet there vs just keep buying BTC
that was what had gotten me interested in MSTR initially, but they couldn't find demand for their bonds. The idea that it was just MSTR and they could do stock dilution and bond sales to stack BTC and actually have leverage at max they only ever had like 10% of BTC purchases with debt, so leverage was always minimal instead now they found demand for other esoteric financial products they created under STRC STRF etc MSTR buyers till act like MSTR is the former simpler offering
MSTR is designed to bleed out to their new preferred shares stocks (STRK, STRF, STRC) in a bear market. It's only going to get worse.
I'm more concerned that they are canabalizing MSTR with their preferred shares (STRC, STRK). It has gotten too complex.
85% Bitcoin 10 to 15 % STRC
What I would do is open a fidelity account and a fidelity crypto account. Buy $4k of BTCI and use the monthly dividends to purchase BTC in the fidelity crypto account. I would then take $1k and buy BLOX and take the weekly dividend and buy BTC in the fidelity crypto account. I would take the remaining $10k and buy STRC and take that monthly payout and buy BTC with that. Once you hit .21 BTC I would drip the BTCI and BLOX back into each to building your position in each while you keep using STRC to buy BTC in your crypto account.
Saylor expects bitcoin to return 30% to 20% long term, while his Stretch (STRC) investors give him 100% up front and expect 10% annually. If he is right, then MSTR will do very well. That's my understanding.
invest in btc then put money in STRC for safe returns
I’ve stopped chasing moonshots in Alts and yield schemes. My Coinbase wallet and a Daedalus wallet were compromised and cleaned out last January. If I would have put all the money I’ve lost on other tokens, scams, BlockFi to get yield etc. I’d be a whole coiner…and I still aspire to be a whole coiner. Just BTC on hardware wallet forms now. I DCA in my Coinbase account and when I get to a certain level, I just transfer to HW wallet. My speculative investments are now on MSTR and their preferred offerings. Saylor is a genius and STRC is a revolutionary investment product and offers 10.75% ROC dividends. If you can build up a modest position, say 500K in STRC will pay over 50K annually and the taxes are deferred as ROC until you sell. If you never sell, you won’t pay taxes until after you recoup your original investment, which is like jet fuel for compounding. I hope to accumulate 500K to 1M over the next decade and hopefully never sell-live off the dividends and pass it to my kids. The common stock has taken it on the chin lately but when you ride a rocket, you gotta be prepared to pull some g’s. If you believe in BTC, MSTR will become one of the most valuable companies in the world over the next 5-10 years.
Saylor's jargon isn't the language of bitcoin. It's the language of tradfi banking, which bitcoin was invented to obsolete. The "digital-yield digital-credit" mumbo jumbo is that it's a way for someone else to take possession of your bitcoin and make you think you're winning. iBIT/FBTC/GBTC = someone else possessing your bitcoin MSTR/STRC/STRK = someone else possessing your bitcoin MARA = someone else possessing your bitcoin Bitcoin left on Binance/Coinbase/Kraken/Bitfinex = someone else possessing your bitcoin wBTC/cbBTC = someone else possessing your bitcoin Be like Satoshi. Hold your keys. Stay quiet. Stack sats.
My good man. Borrow some against your bitcoin for a bit of cash sure, but why not keep the cash in STRC. It’s designed to keep close to a $100 per share price and pays 10.5% annual. If the price per share drops below $100 then Strategy keeps increasing your yield until the deal gets so attractive that people buy in and share price goes up. The reverse happens if the price gets too high so you maintain your capital. You get paid monthly. At the end of the month. Why not just put that cash payout every month into more STRC and start compounding your interest. Or even better, put that monthly check into buying more bitcoin. Think about it. You already profit from the arbitrage monthly. On top of that, with STRC your bitcoin loan can earns you 10.5% annual paid monthly which can buy you bitcoin. (Y s your loan amount keeps going up but your LTV will keep getting even safer every month (when bitcoin is bought with the STRC profit) The cherry on top, the money you earn monthly is not taxed as income. It’s classified as return of capital and reduces your cost basis so tax deferred until you sell STRC. The downside? STRC is a stock so it’s not as liquid. You would have to wait until a business day and regular trading hours to sell. So basically don’t get too risky with LTV. Don’t want to hit 86%
Listen--- people don't want to hear that "Tokenization" is a thing, but in reality, it's going to replace the current "out dated" structure of how things are done. BlackRock, JPMC, etc. will lead the way to the "traditional" segment of credit sectors, but Strategy will lead the way for truly the next "what's next" when it comes to money, banking, etc. STRC is essentially a leveraged bond (but not in the traditional sense like TMF) of which is backed by capital investment. "Capital Investment" is loosely defined but the point is it tracks with Saylor's statement around "digital real-estate". The point is, BTC will never be sold against assets generated against it as the "backed" asset that, in theory will always go up, despite the volatility of the "now". The reality is, these types of tokens will replace traditional payment systems and/or "net-new" payment systems will at the very least, bridge to these new "Tokenized" assets because it will allow people to take leverage out in new ways, which create new capital, which creates more jobs, which creates.... you fill in the blank. Saylor's "big bet" that he isn't tell anyone because they are too low IQ to understand is Bitcoin is the backed spending strategy that everyone will use because you will have unlimited, Tokenized capital to invest and spend because.... surprise.....!!!!! You're the F'NING BANK! :)
Post is by: Gullible-Tale9114 and the url/text [ ](https://goo.gl/GP6ppk)is: /r/CryptoMarkets/comments/1phwm36/michael_saylor_just_pitched_countries_on_creating/ Speaking in Abu Dhabi, Saylor laid out a vision where countries could use Bitcoin reserves and tokenized credit to offer regulated bank accounts that give way higher returns than traditional deposits. He pointed out that banks in Japan, Europe and Switzerland barely pay any interest while US money market funds are around 4%. People are basically disgusted with their bank accounts which is why corporate bonds exist. His proposal involves structuring accounts with about 80% digital credit instruments, 20% regular currency, and an extra 10% buffer to reduce volatility. The digital credit layer would be backed by Bitcoin reserves with about 5 to 1 overcollateralization. Basically using Bitcoin as the ultimate collateral layer. Saylor thinks a country that implements this could attract $20 to $50 trillion in deposits and become the digital banking capital of the world. Thats not a small claim. However theres obvious skepticism here. Bitcoin is down 28% from its recent highs and dropped 9% over the past year. The volatility makes people question how you can build stable high yield products on top of it. One former bond trader called Saylors moves folly and said hiking rates to maintain a peg wont work when people want their money back during a panic. Strategy already has a product called STRC that works somewhat like this - its grown to $2.9 billion but faces doubts about whether it can handle a real liquidity crunch. The idea is innovative but feels like it requires Bitcoin to keep appreciating long term to actually work. What happens during extended bear markets? *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.*
I should clarify that Strategy (#MSTR) doesn't pay a dividend on their common stock, but they do pay dividends on their preferred stock STRC. They basically sold and diluted their common stock to raise & secure cash funds to pay out this preferred-stock dividend for STRC through basically all of 2026. I'm not in here trying to argue merits of buying their stock at all, and I own none of their products. The intent of my original post was just that with pressure reducing on them, confidence can return to BTC buyers that Saylor won't flood the market with cheap Bitcoin in a pinch.
How is STRC treating you? I was thinking of buying some in the near future. Dividend paying reliably? Share price still around $100?
I had a modest individual investment account. I sold everything and put it in bitcoin. I did not touch my 401k for it, I put 40% of my HSA into Fidelity BTC etf and STRC. I do not have any health conditions. My individual account DCA now goes into my Trezor via CashApp
Ok then get a bitcoin then just use STRC as the backyard.
Same. Already left and went to Fidelity. Not going back. I would have stayed if they would have allowed bitcoin ETFs. To be fair they sell STRC which is nice as a parking spot.
If BTC crashed, it means there’s a fiat currency out there that’s doing everything right and is really strong, and their preferred insurances like STRC that is intended to be like a money market will lower their percentage yields to give you monthly dividends in that said strong fiat currency. Think of it like the currency is tied to Bitcoin, not Bitcoin tied to the currency.
STRD: 1.25b notional @ 10% = $125m / year. Strategy is not obligated to pay the dividend. STRK: $1.4b notional @ 8% = $112m / year. Strategy is not obligated to pay the dividend. STRC: $3b notional @ 10.5% = $315m / year. Strategy can defer paying dividends for a long time at a very low interest rate STRF: $1.25b notional @ 10% = $125m / year. Strategy can defer paying dividends for a long time at a very low interest rate. Strategy has a stack of $56b in bitcoin to make these payments. Your sky-is-falling assessment of Strategy's financial situation is pure FUD.
I would like to see this "admission" as well. Not saying it didn't happen but who could be bearish on strategy? Full disclosure: I only buy STRC with a small portion of my emergency fund. Otherwise, bitcoin only.
Bitcoin-backed bonds are going to significantly out-perform their counterparts, leading to steady increases in wealth allocation to Bitcoin bonds. Many are sleeping on the capital unlock service Strategy and others are performing. Whenever Bitcoin goes to $200k, it's going to simultaneously unlock even tens of billions more going long through the bond market. Old people like me that see Bitcoin crashing, and know it's not going to zero, buy Bitcoin indirectly through the bonds. With Bitcoin in the low 80s, I want to get involved. But I'm already outrageously long Bitcoin. So I sell gold, buy the Strategy bonds, knowing full well that Bitcoin and by extension Strategy are not going anywhere close to zero. I trust STRF nearly as much as US treasuries and it yields around 10%. STRC at 91 w/ a promise from Saylor to make it trade at 100? Yes please. The rates are crazy high for the risk. And the bond market is HUGE, the demand for this service is massive compared to Bitcoin's market cap. The limit on bond issuance is based on Bitcoin's size. As Bitcoin gets bigger, the number of available Bitcoin bonds gets bigger. But as Bitcoin gets bigger, it becomes more stable and more trusted, so the demand from the risk-averse bond market rises with it. Strategy and others tap this demand to issue these bonds and use the proceeds to buy more Bitcoin. It's not an infinite money glitch, it's size will grow as Bitcoin grows, but adding fuel to the exponential adoption fire. The thing to understand is that this spigot is on and then off, and it's off right now. Bitcoin is stabilizing on its own and attacking $100k again. When the spigot is back on and liquidity is running wild with a new Fed chair and direct payments to citizens... watch out above! US Treasury buys, MSTR buys, government game theory engage. It's one more way global buying power inevitably flows into Bitcoin.
Tell that to my 10% STRC divvy.
Also, with Saylor’s Strategy offering preferred stock products with STRK, STRF, STRD and now STRC offering 10% yield, if I was Jamie Dimon and my bank was only offering 1.5% interest on my savings , I’d be more than a little worried about this as he definitely feels threatened. It’s tradfi colliding with defi. This battle is just getting started boys. Grab some popcorn 🍿
The lower the fed interest rate goes, the more enticing Strategy's preferreds look, such as STRC at 10.5%, the proceeds of which get rolled into bitcoin.
Going off [https://www.strategy.com/](https://www.strategy.com/) They got $8.2 Billion in debt, first batch of $1.01B due in 2028 (can be forced to payout in 2027), average interest rate 0.5% STRD Preferred stock $1.255B issued at 10% STRK Preferred stock$1.4B issued at 8% STRC Preferred stock $3B issued at 10.50% STRF Preferred stock $1.3B issued at 10% STRE Preferred stock $0.7B (USD) issued at 10% So thats a total of $8.8B at roughly 10% So they need close to 1 Billion a year for interest and preferred stock dividends. Based on their current holdings (and current Bitcoin price) is a 2% dilution required. So effectively its just a really expensive Bitcoin ETF atm. No idea how they are going to raise more money to buy bitcoin. But also can't see them getting into real trouble until the first bonds become due.
Nothing stops a downfall faster than selling. I bought STRC on Monday. That's what caused the whole economy to crash. Going to sell in December. That should bring things back up.
Explain then. His products aren't in a position he can tap them. STRC for example is trading at 92, the target is 100.
I get what you are coming from, it’s difficult to make sense of all the rather complex information. The dividends are not paid on their bitcoin holdings, they are being paid on the $8b in credit, STRD, STRK, STRF, STRC and STRE.
It depends on the product. For STRD, nothing. For STRC for instance MSTR has to pay interest on skipped dividends that will cumilate (they have to pay it off eventually but can skip a date).
Actually, they dont. If you look at the different credit products they offer e.g. STRC/STRD, they can skip dividends in the latter, in the former they're cumulative.
From chat - Strategy’s dividend products (STRC/STRD) are backed mostly by senior secured private credit loans, which are safer than junk bonds but riskier than Treasuries. The dividend is relatively safe because Strategy earns more on the loans than they pay out and can smooth payments with cash reserves and small MSTR equity sales. Principal risk is moderate—defaults can happen, but the loans are over-collateralized and short-term, which limits damage. Overall, they are fairly safe income products, but not risk-free like government bonds.
My prediction from yesterday ( ͡° ͜ʖ ͡°) >I think it will be around 7,500 coins >The liquidity comes from the launch of STRE and a week of STRC @ target >Im guessing the average will be higher than the current price though, maybe around 98K-102K
It's all about timeframes to me. When do you need this money? If it's not for 30 years then why worry about the day to day volatility? Just ride it out. It you do need it in the next couple years then ya you should probably have that portion in something more secure like STRC.
MSTR has survived worse for longer, and he'll have enough cash from the $STRC offering for another 4 months of weekly $50,000,000 purchases. Strategy is just a leveraged-BTC stock the same way BTC acts like leveraged-Tech stocks. They're bound to have worse drawbacks while BTC is in one of its moods.
Looking forward to the next big pump for BTC once Saylor has his hands on those hundreds of millions of dollars from the $STRC offering to buy this dip. He's got a knack for buying really high local tops at the very least, so once he's ready to pull the trigger, the price should skyrocket just before he does lol.
Ok on this we see eye to eye. The volatility with the four year cycle and the unpredictability. Short term. It’s not something for people that need an emergency fund. That’s the absolute biggest issue. Every four years it has had a down year. Granted all that has been before the start of ETFs no one has seen what a crypto winter would look like with ETF demand and buys. Enter STRC. From Strategy and Michael Saylor. Stability like a mother fucker. Consistent 9.5 to 10.5% returns per year. Not only that. The returns you get are tax deferred. Not capital gains tax. Interest paid monthly. You can even buy more STRc with it. I’m assuming you don’t know what this is. Volatility stripped away while still keeping some of the upside of Bitcoin. Need a place to park emergency cash and also want some income? Intrigued? At least here it’s tax deferred. In fact you don’t ever pay the tax unless you sell your shares. It’s considered a return of principal. What do you think? Good? Not too good?
I’m doing something very similar to you except my high yield savings is STRC, paying 10.25% dividend.
This article is so misguided.. Equity = asset - debt You can’t just directly compare its bitcoin holding to its share mcap, especially considering they issued all these preferred convertible STRC, STRK etc etc.
I grabbed a couple of shares of MSTR, MSTY (I know, be nice) STRK, STRD, STRC and maybe one other before I even knew what they were. Bags are bleeding but I’m in it for long term😅
Anyone looking for less vol would buy their preferred equity instruments. STRC, STRF, STRK
I love the vision... ...BUT Bitty price needs to recover some moving averages or sentiment will be so bad that you won't be able to sell those products. I'm deep into Bitcoin and want to buy STRC, but I'm still just watching.
Source is mainly STRC getting to PAR and them being able to continue to create and fulfill demand for a 10.5% stable price preferred offering. HYSA's pay 3-4% and decreasing with rate cuts, if STRC pays 10.5% and it's tax deferred it's a much more attractive offer. They just started marketing it, let's see how it plays out
Makes total sense. STRC beats HELOC rates. MSTR seems to be solid. If fees etc are good - it makes sense 💗 (I have some questions about mstr longer term, and it is not my preferred way of holding but I can see how it would work and be of tremendous value)
STRC hit $100 so I expect a bit from that.. mNAV is low so nothing from the common.
Since the 2022 bottom, I 5x my investment in BTC. Besides some BTC in long-term storage, I’m totally in cash, STRC, and money markets now. I retired at 36yo in ‘21 because I follow cycle theory. You Buttcoiners can go on and on about people getting recked, but you’re just missing the opportunity of a lifetime.
Sure. I’m referring to STRC/STRD/STRF/STRK. MSTR doesn’t do a dividend. Which one do you think holds more weight? Bitcoin or the faith and trust of the US Government 🤓 see where this is in 5 years
loving STRC & STRD rn. MSTR is on sale too
2nd time in a week Saylor shills STRC. Must be desperate to fund Strategy's next BTC purchase at this price.
I see. That is very interesting to learn. In this case I wonder because I wonder if shares of STRC will count as shares of a stock. So an asset perhaps? Maybe not though if a gray area do not want to push it with religious obligations.
STRC has hit $100 which is the target "stable price", means he can issue more shares when new buyers come along.. The perfect bear market product.
What happens if you lose your job? Suggest keeping 3-6 months of fiat. Preferably in STRC.
What about STRC. The 10% payments you get are not classified as interest. It’s classified as return of capital. You don’t even get taxed on it. It’s deferred. You don’t pay it back if you don’t sell. You can even use it to buy more STRC. Then pay taxes on it when you sell shares if you want.
The company, Strategy, plans on paying its **$689 million total annual interest and dividend obligations** primarily through the use of its **Common Equity ATM** (At-The-Market offering) [1, 2]. Strategy emphasizes that it has **"more than sufficient access to liquidity"** to manage its total annual interest and dividend obligations due to its proven track record of capital raising activities [3]. The company feels confident that its ATM will be **"more than supportive"** for all of these dividend obligations [1]. ### Details of the Annual Obligation The total annualized interest and dividend obligations of **$689 million** (as of October 24, 2025) comprise [4, 5]: * **$522 million** in cumulative dividends on preferred equity (STRF, STRC, and STRK) [5]. * **$125 million** in non-cumulative dividends on preferred equity (STRD) [5]. * **$35 million** in interest expense on its convertible debt [5]. The $689 million annual obligation represents a small fraction of the company's financial metrics [2, 3]: * **1.7%** of the **Last Twelve Months (LTM) Total Capital Raised** ($40.4 billion) [2]. * **2.6%** of the **LTM Common Equity Raised** ($26.9 billion) [2]. * **6.1%** of the **Year-to-Date 2025 Operating Income** ($12.0 billion) [2, 6]. * **21.7%** of the **Average Daily Volume (Common Equity Last 30 Days)** ($3.9 billion) [2]. Furthermore, Strategy highlights that its large Bitcoin holdings provide significant coverage for these long-term obligations. With $74 billion in Bitcoin holdings, the company asserts that its assets are sufficient to cover approximately **120 years of its annual preferred dividend needs** at current prices [3].
I can't say for certain, but my theory is he was worried the price would go higher/faster than it did, so wanted to accumulate faster. Maybe he bought into the Government BTC reserve ruse lol. ATM did hurt, but if you look at the chart.. mid July MSTR hit around 450. By this time a majority of ATM was done, so it wasn't just that which caused the dip. When they did they announce STRC? End of July.
No big deal in the long run, but bear in mind the ex-div date is the 15th, so you're most optimal buying on the 14th (which guarantees settlement on 15th). i.e. If your trade is settled by Nov 15th, your first dividend payout is Dec 31. If your trade settles on Nov 16, your first dividend payout is not until Jan 31! So for that one day difference, your money is earning no yield for an additional month. Normal dividend yield stocks like this usually drop in price before the ex-div, but it doesn't look like STRC does because of its low volatility target of staying at $100 in perpetuity.
Look into STRC. Pays 10.5% APY, and helps the bitcoin network.
... or help Bitcoin and buy STRC.
what is the STRC strategy exactly?
I recommend STRC from strategy...give you exposure to btc and higher dividends than hysa which are tax deferred.
I am actually liking Saylor's STRF/STRC for parking cash short term. there is minimal default risk because MSTR has very low avg acquisition cost. plus you get \~10% interest. which I feel is safer than S&P atm. not selling my S&P but just dont feel like piling into it.
Depends on your goals and risk tolerance. Long term goals = buy BTC Long term goals high risk tolerance= by mstr ... Short term goals, low risk = buy STRC
if you remember the dialog by joker .. its not about money its about sending a message'. I'd say the fact that network is worth >2T without even making a crack at legit investing pools like retirement funds & bond market tells me that Bitcoin is already making a difference. you dont upset a 200-300 year old financial order in a decade, it takes a while & slow grind. personally I am thankful that on aggregate its growing way faster than S&P so Saylor can actually do debt strategies like STRC and funnel fixed income arbitrage into bitcoin. if that takes off even a bit you guys dont realize what a tailwind that is. franking this whole subreddit circlejerk around 'why its not 2X yet' is tiring and really boring. personally if bitcoin grows to be a international alternative to gold and upsets the fiat applecart, that is good enough for me. If I make some money on the way great, as long as on aggregate its >>S&P I dont care if it make me a millionaire.
You could get about $32,000 a year in dividends by owning STRF or more in STRC. It wouldn’t be my move to pay all that in taxes and lose the potential of all that capital by selling BTC (tax event) AND paying off a mortgage unless said mortgage is literally strangling the air out of you. I like STRF in that it has a first hold on $72B in BTC reserves. Quarterly dividend. STRC will pay you monthly.
I have a long-term hodl in cold storage locked in a bank vault in another country. I couldn’t access that BTC today if I wanted to. That said, I also have BTC I buy and sell every cycle to fund my lifestyle (retired last cycle at 37yo). This cycle, I was buying BTC between $25k and $16K in ‘22. I’ve sold all of that between $105k and $125k to 5x+ returns netting $500k. $300k has been rolled into STRC, the rest in money markets to pay for my lifestyle as I wait for the next cycle winter bottom. I’m not competing with everyone to time the top, I’m navigating my desired lifestyle. I love my paper hands, cuz I got paper in my hands.
I love the MSTR preferred stocks! Go with STRC if you want to minimize price fluctuations. MSTR is down a bit so STRK might be a good choice if it rebounds.
To be fair, if he's going to allocate anything to fixed income, STRC would be far and away a better idea.
Look into STRC if you are unsure. It stays locked at around $99 per share and pays 10% dividend monthly. The parent company is a Bitcoin Treasury and for them to ever have an issue paying you, Bitcoin would have to drop to an insane level like 15k, and if Bitcoin ever started dropping to the point where you would get concerned, you would have plenty of time to get out and move it back to a regular money market account. You can sell the STRC for nearly the same price you bought it at any time to move your investment to another vehicle.
If you go this route, just buy STRK or STRC for the high yield.
Emergency fund is money that could be working for you. Buy STRC for more thab than double the interest of a """high yield""" savings account. You can always get a credit card if you want quick access to money. I would put at least 25k in BTC. These people who promote the 3-6 months in savings are just repeating the same advice as everybody else.
Why not park $100M into STRC and just chill lol
STRC is a preferred stock issued by Strategy traded on the New York Stock exchange. Its aim is to peg near 100$ and pay whatever dividend will keep it there, which is currently 10.25%.
The risk I see with STRC is pretty one dimensional: either Strategy votes to pay dividends or not. My bet is they will pay almost no matter what because nothing matters more to Michael’s long-term strategy than investor trust, especially with these products. Shockingly, it’s the regular MSTR share holders that are taking by far the lion’s share of risk. Im actually quite confident in this trade, but even then, I’m cautious. I have identified one ‘canary in the coal mine’ signal that’s made me even more confident in the trade. Unfortunately, if you don’t understand the product, it won’t mean too much, but I’ll tell you anyway. If STRC lowers the dividend rate, + the lowered SOFR rate, and the share price is under $100, you must exit the stock. To clearly understand, I highly recommend downloading the IPO prospectus and uploading that to ChatGPT to go through the product.
I wouldn't touch STRC now. I have to see how it reacts deep into the bear market.
Isn't this the new BTC bottom? Why Invest all that in STRC and unlimited coin?
I see nothing wrong with your cautious strategy. You live a comfortable life and can wait years. I've been hearing more about STRC. Need to do some more research. What are the risk of it failing? Is it tied to Bitcoin price?
Thanks for sharing. So you say you exited already in BTC for now, and bought STRC now that’s somehow down from its ATH. Have you invested in ETH or other altcoin? I assume you haven’t, based on your story of good decisions. Unfortunately, I have, thinking some would outperform BTC in the last part of the cycle. In my case, this is my first cycle, and hoping to do better next time.
Maybe I should just guarantee 10% and invest in STRC
His access to highly profitable leverage ebbs and flows depending on market sentiment and preferred offerings. Euphoria within BTC would likely raise access to more capital, as would if STRC can reach parity to $100 consistently and get rated favourably by credit agencies. We have seen this historically that their ability to accumulate fluctuates massively over time depending on current sentiment. Also bear in mind the leverage he is using currently has a high torque, raising $100 per share of STRC gives him access to money without diluting common stock shareholders, no converts, just a perpetual dividend payment which will naturally become more insignificant as BTC rises in tandem to the dividend payment itself.
You are forgetting STRK, STRD, STRC, STRF and any future preferreds. You are dismissing future avenues for yield via BTC banking avenues etc. Put it this way, if mNAV is approx 1.4x, they need to achieve 40%+ BTC yield over the entire life time of the stock, to ensure MSTR outperforms spot bitcoin over the same duration, even if mNAV trended down to 1. 25% yearly accrual I agree is extremely unlikely moving forwards... but 40% over a lifetime? Sounds realistic to me.