STRK
MicroStrategy Incorporated 8.00% Series A Perpetual Strike Preferred Stock
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I was on the MSTR train before he started doing all this extra fancy shit like STRK. Had he stuck to his plan I would’ve happily paid the premium.
we've already got $STRK, $STRD and $STRF, tomorrow Michael Strategy announces $STROPE
There’s time to buy rope. The next Strategy (STRK) 8.00% Series A Perpetual Preferred Stock dividend is expected to have an ex-dividend date around March 13–17, 2026, with a payment date of March 31, 2026.
Just booked a slot at Strategy World 2026 at the end of Feb. I have some questions about the STRK dividend and who is calculating the underlying fund correlations they use on their website
This is appropriate for a FIRE sub. You might be familiar with Strategy’s Pref’s. I’d consider a barbell approach where you pull some out into STRC for “cash that isn’t totally trash”, pull some out into STRK for longer term growth only if you still believe in BTC & then you can keep playing with the third pile but you can afford to de-risk A LOT & leave the day job; focus on the finer parts of life. With ~$5M in STRC/STRK you’ll bring in $500k in ROC dividends so you’re financially secure even if things get a little sideways sometime in the future. Hell, tell everyone you manage a portfolio for a single client if you need to 😉
You're speculating the most volatile speculative asset in the world. Your math is wrong too STRD&STRK dividends can be skipped only STRC,STRF are cumulative. Volatility fuels the MNAV multiple. People will soon realise ETFs aren't worth buying cause it essentially mirrors bitcoin if not more so. MSTR will never sell BTC.
They are issuing a plethora of preferred shares (STRC, STRF, STRF, STRK, STRE) which pay dividends up to 14%
Strategy Inc (Nasdaq:STRF/STRC/STRK/STRD/MSTR; LuxSE:STRE) has created a $1.44 billion USD reserve to support dividend payments on preferred stock and interest on outstanding debt The reserve, funded through proceeds from the company’s at-market offering program. So they diluted to pay dividends on other shares they sold?
Look at the names of his preferred stocks... they say the quiet parts out loud these days. MSTR STRK STRD STRF (The) Master Strikes (regards, and) Strides (over the corpses of retail portfolios) Strife (for the suckers)
share dilution, they call it accretive dilution... chat gpt summary **Strategy’s “dilution problem” explained (in plain English)** (MSTR) keeps issuing new shares, convertible notes, and now preferred stock to buy more Bitcoin. That’s called *dilution* — it increases the total share count and reduces existing shareholders’ ownership % per share. Normally, dilution is bad. But MSTR argues it’s *“accretive dilution”*: if they issue stock when MSTR trades at a big premium to its Bitcoin holdings, they can buy more BTC per share than they give up in dilution. It’s basically using overvalued stock to stack sats. The catch: * They recently dropped their promise not to issue below a 2.5× premium to BTC value (mNAV). * They’ve issued hundreds of thousands of new shares via their ATM program. * Convertible and preferred instruments (like STRK) could add even more dilution later. * If Bitcoin or the MSTR premium drops, that “accretive” math flips and hurts holders fast. TL;DR: MSTR’s dilution is a *feature*, not a bug — but if BTC or market confidence wobbles, shareholders could eat the downside.
Have you looked at the Strategy preferred STRK
I guess its confusing as most companies have 1 or 2 tickers, but MSTR has 4-6. MSTR is both the common stock and company. The tickers; STRD, STRK, STRC, STRF, are all additional tickers for preferred stock issued by company. Look at [strategy.com](http://strategy.com) for more details on all the tickers..
Go with fidelity. Asked and received 100 of Circle, Strategy's STRK/STRC, and Bullish. Asking for 200 for Gemini.
I understand why it _feels_ that way, but if you look at how levered MSTR is, how long the obligations mature over, it's debt ratio --- it's got _plenty_ of room, it's actually fairly conservative. I think he's 11% (debt to convertible notes + preferreds) vs BTC holdings: >Tally (convertible principal outstanding): ≈ $8.214B. >Using the company’s reported share counts (STRK/STRF/STRD as of Jun 30, 2025) and STRC’s IPO size, each at $100 stated amount, liquidation preference outstanding is roughly $6.2B >BTC held: 629,376 BTC (latest company 8-K), aggregate cost ≈ $46.15B, avg cost ≈ $73,320/BTC (all inclusive of fees) >Debt / BTC at market (today): BTC ≈ $114,578 → holdings ≈ $72.1B ⇒ ~$8.214B / ~$72.1B ≈ **11%.**
They've been doing this for like 5 years. At first it was all convertible debt - loans that came due all at once. Those were proportionally bigger obligations than the current interest debt, since there's no principle to repay (except for STRK if MSTR reaches 1k). They had obligations to meet, and they've met them, even with a bitcoin winter in the middle. The risk of bankruptcy without failure of bitcoin was much greater in the past because they had a much weaker balance sheet. In short, their NAV has grown more than their obligations, and the MSTR share price tends to be based on their NAV. > Why put yourself in that situation? For a few extra percent gain on an already volatile asset? Well I made significantly more than a few extra percent so far, but indeed from now on it may not be much, or it may even under-perform BTC depending on how mNAV goes, so I'm mulling over it. I already rebalanced some MSTR to other things, and some MSTR to STRF But I'm not afraid to hold the rest for a while more while I decide. I want to wait longer to see how much demand there is for the preferred offerings, and what prices they trade at. I also have a reason that others don't. In my country I have very limited options for btc exposure in a tax advantaged account.
Bitcoin or one of MSTR’s preferred shares STRF/STRK/STRD/STRC. Those prefs are the most underrated products in the market. STRF 10X+ over collateralized, pays 10% annual divvy and perpetual. STRC is an essentially a high yield savings account, designed to trade at $100 with 9% APY paid out monthly (also 10X+ collateralized by their btc holdings and perpetual). Those things are so bulletproof they can survive a 90% drawdown while still paying their dividend obligations. What they’re building is the most important story in all of finance. If you are the slightest bit interested in bitcoin or already own some, those preferreds are a no brainer to store your capital.
MSTR and STRK gotta win most innovative financial product of the year
They are offering STRD, STRK, STRF and STRC.
Buy 2 bitcoin, then the rest split between $STRK (for dividends) $MSTR.
425 is too cheap for MSTR. STRK will print millionaires
They literally announced today they are selling more stock to pay the dividends of stock already sold in the past. That fits pretty well with the ponzi definition. Gotta sell to new suckers in order to pay the old suckers. > The proceeds will be used to purchase more Bitcoin, fund general corporate operations, **and support dividend payments for other preferred stock classes, including (NASDAQ:STRK) and (NASDAQ:STRF).** compare that to: >Pon·zi scheme /ˈpänzē ˌskēm/ noun > a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the **payment of quick returns to the first investors from money invested by later investors.**
Bitcoin, MSTR, MTPLF, STRK, NVDA
I'd take their headline figure of $200k with a certain pinch of salt (it's just their best guess), but can't argue with their overall comments/rationale. Bitcoin's now entering a new phase in corporate adoption, with many now putting it on their balance sheets, and products like MSTR's STRK, STRF and STRD are starting to mop up considerable volume from the fixed interest markets.
I can't wait to revisit this. I 1/4 of my sons stocks in STRK lol
Just noticed STRK price action 👀
Microstrategy's preferred STRF and STRK. When institutions jump in when rates get cut to yield chase and also when these get credit ratings in 2026, the prices will likely go higher. Especially STRK when MSTR rises over 1000 due to embedded call options. It's a unique financial product.
MSTR buys BTC; BTC value increases; MSTR stock goes up; borrow at low rates or dilute shares to generate more capital (stock price slightly down) to buy more BTC; BTC goes up more; MSTR stock goes up more. They are also using the cashflow from their business to pay interest on the borrowed money (or convertible bonds issued) that generates the cash to buy more BTC. Pretty interesting treasury strategy, kind of shorting the dollar if you will to store value in BTC. High risk. [here is how they are doing it now with delayed dilution through STRK offering](https://medium.com/thecapital/infinite-money-glitch-microstrategys-strk-offering-and-long-term-shareholder-value-0c0a35427b09)
Fixed-Income ETFs are good but DO require cyclical management....they are not set and forget; they are also not Value-Based products, meaning the Value is not in the strike but the Distributions. Almost all the good ones are 1x Leveraged...the great ones are 2-3x but annual distributions (so Day-trader products). \---- If you want comfort without management, look into Preferred Stocks (no DRIP)....make sure you buy in less than its Face Value (FV). For instance, >$STRK is currently at a $5-6 Premium ($105.68/sh), it has a $100 FV; however, it pays $8/yr (8% \* FV) with a quarter distribution of $2; Technically you would have recovered the Premium after the 3rd quarter and it is Perpetual with no real Call Data, it has a Earliest Call Date. >$SOJD is currently at a $5+/- Discount ($19.93/sh), it has a $25 FV, pays out 1.2375 (4.95% \* FV) each year with distributions quarterly (0.309375/qtr); It has a Call Date of 1/30/2080, yes 2-0-8-0 You need to assess your own risk and ability to manage, that will identify which instruments you choose. LETFs can exceed 70% ROI in a single year; MSTY is on track to be 130-160% Yield.....Their caveat is NAV erosion if mismanaged or their strategy is too weak for the holdings IV.
In a few words I'm probably not going to make you a believer in Bitcoin. If you believe in Bitcoin, MSTR is a Bitcoin treasury company with the largest (by far) holdings of Bitcoin. They are using this Bitcoin as collateral to offer fixed income preferred stock (STRK, STRF, STRD) which allows them to buy more Bitcoin, which keeps appreciating in price. I personally believe Bitcoin will continue to go up in value because fiat currencies continue to get printed to oblivion.
STRK, 8% annual dividend, convertible to MSTR 10 to 1 if MSTR share price hits 1000.
Saylor is basically full of shit. If mNAV fell below 1, STRK and STRF would also be trading significantly lower. So he wouldn’t have the option of selling those to buy back common stock, unless he was willing to pay ridiculously high dividend yields. Except he has no way of paying ridiculously high dividend yields because his company has no cash flow. He could sell Bitcoin to buy back shares, except Saylor can’t actually say that out loud because his whole mantra is never sell Bitcoin.
You are so true. As yesterday, BTC hit ATH, but MSTR was on the opposite direction. STRF and STRK together diluted the value of MSTR. The company is playing a game
No, I wouldn't say that. They are a company you should focus on the long term with. They are the largest holder of BTC for a mining company. As of May 2025, several companies hold significant amounts of Bitcoin (BTC), with MicroStrategy (now operating under the name Strategy Inc.) and Marathon Digital Holdings (MARA) being among the most prominent. Here's an overview of their holdings and other major corporate BTC holders: --- 🥇 Strategy Inc. (formerly MicroStrategy) BTC Holdings: 576,230 BTC. Estimated Value: Approximately $62.26 billion. Average Purchase Price: $66,384.56 per BTC. Percentage of Total BTC Supply: Approximately 2.74% of the 21 million total supply. Recent Activity: Between May 12 and May 18, 2025, Strategy raised $705.7 million through the sale of common stock and issued 621,555 shares of its STRK preferred stock to finance additional Bitcoin purchases . --- 🥈 BlackRock’s iShares Bitcoin Trust (IBIT) BTC Holdings: Second-largest holder after Satoshi Nakamoto. Recent Development: As of May 20, 2025, BlackRock's IBIT became the second-largest holder of Bitcoin, surpassed only by the wallet of Satoshi N. ------- 🥉 Marathon Digital Holdings (MARA) BTC Holdings: 47,531 BTC as of March 31, 2025. Recent Activity: Marathon's Bitcoin holdings increased 174% year-over-year from 17,320 BTC at the end of Q1 2024 . ---------- Other Notable Corporate Bitcoin Holders. Coinbase Global, Inc.: Holds approximately 9,267 BTC . Block, Inc.: Holds approximately 8,584 BTC . Galaxy Digital Holdings: Holds approximately 11,242 BTC .
If you have to ask that question then you don't understanding the leveraged play. $2Billion in interest across STRK and STRF instead of likely $500Million of interest across the 2 assets at 5% that means $1.5Billion in lost opportunity cost of 50CAGR... or approximately $86.5 BILLION in lost shareholder value over the course of 10 years.
Who taught you economics and finance? I need to find that person and have a word with them. If preferred shares are debt, then so are regular shares... the hell are you talking about? Preferred stock contains a portion of debt property in the dividend payout, but it is equity as well because it can appreciate in value. Bonds/debt alone can't do that. So no, preferred stock is not debt, no matter how much you want it to be. You are confusing the STRK and STRF preferred stocks which are two completely different products being offered. And they don't NEED to pay 10% but they are because there is a demand for the product, but it is a new product they are introducing to the financial market. Bitcoin treasury preferred shares are a new concept but there is a significant appetite for them. Just like when they started doing convertible debt they did 0.75% coupon and 40% conversion rate while now they are considering negative coupons with 60% conversion rate. Greater the appetite by the market, greater the pricing and you can expect the same to happen with future preferred stock offerings going forward. What you fail to understand is that pension funds, sovereign wealth funds, and other entities have a strong desire to have exposure to Bitcoin but can't do so through convertible bond market...they can through the preferred stock market though. Saylor is creating targeted financial instruments for specific industries to maximize the impact of the offerings. Convertible bonds are for insurance companies, and with BTC at $110K the EPS will be at $55/share the S&P500 inclusion will be on the table in June. Once in S&P500 the bonds have to be rated, and regardless of the rating the insurance companies can insure 50% against the value versus 25% they can now. Once the debt becomes B or higher rated, they can insure up to 80% of the holding value. Again, don't be dense man... you are trying to fight based on archaic and idiotic beliefs, instead of looking at it and saying "holy shit they just had the biggest public preferred stock offering in the last 30 years and they had the 3rd largest convertible bond issuance since the NYSE started" you are fighting to maintain a narrative that's quite honestly dead.
The are you talking about STRK is NOT a bond man? You really are dense... it is a DIVIDEND PAYING STOCK set to pay out FIXED $8/share at a valuation of $100/share... that's it... the market didn't price them as TWICE AS RISKY? Strategy priced them as such, that's it. There is no DEFAULT of MSTR or the market pricing it in... must be nice to be that freaking ignorant and uneducated about finance.
No, I called you dense because you believe that MSTR holdings are encumbered by debt, which it is not, and because you believe that the bond market is the better play than STRK... which BTW the 30 year went to 5.25% because the 20Y bond auction TANKED. They planned to sell $40Billion worth of bonds and had only $12Billion of accepted offers... no one wants this toxic horse shit. Bitcoin just hit an ATH and you're telling me that the US government is a better bet? That's why I called you dense... not because you told me that you can't redeem STRK for MSTR shares
Dude, I'm getting over Covid... gezus... And you're correct, I misread that you could get the payment in MSTR, instead Strategy has the right to call in STRK and convert to MSTR stock at 10/1 ratio but only if the MSTR price is over $1,000/share.
STRK and STRF offer 8% and 10% yield respectively. And will perform well over the next few years
high volatility. Saylor explains in almost all of his ERs that he is intentionally setting up MSTR and STRK to be like this. His funding plan for BTC purchase is to sell essentially long hedges to dealers and funds, so they can safely run the premium casino to you regards. The higher the premiums the more valuable this is.
Port = 75% MSTR, 15% STRK, 10% STRF….Jim, am i diversified?
Im very sure about that. MSTR issued debt to buy bitcoin. That debt will need to be paid in various ways(share dilution is one of the forms). Another form is the dividend paying STRK(https://www.reddit.com/r/MSTR/comments/1imbqxt/strk\_is\_a\_perpetual\_mstr\_call\_that\_pays\_9/). Thats a divident paying instrument that MSTR is on the hook for on a continual basis. Holding bitcoin isnt going to generate cash-flow for MSTR to pay for STRK dividends. So while their bitcoin holdings may be going up(and each share gets a higher and higher theoretical amount of bitcoin) that doesnt actually matter because they only way for them to pay off their debt is to issue more debt given that their software business is tiny in comparison. For that they need cashflow.
Sure, you can buy and sell MSTR as you wish on the open market. Except the idea with a stock is very different than a loan. In a loan, the principal is always repaid with interest or yield. Here, MSTR stock is not a loan. They are just using your hard earned money to buy a portion of the claim of BTC, from what you could've bought on just a normal BTC ETF. Given its 2.4 NAV premium, you are overpaying for the BTC portion. Overpaying by 47%. And the 53% BTC claim you have is on a gearing ratio of 30%, or a balance sheet leverage of 1.3 Obviously, MSTR stock doesn't pay dividends so there is no interest payment. Also the BTC yield metric they use is not to be confused with conventional yield for a bond. BTC yield is a ratio that measures the change in Bitcoin holdings to newly issued shares. This is a convoluted way of saying that MSTR will issue new shares (i.e. issue new debt in the form of STRK shares), and use these new shares to buy BTC. However, the twist here is that BTC yield will always be positive, even if BTC price goes down by 70%. This is because MSTR will never sell BTC. So the numerator of BTC holdings will always be positive, and always increase. The denominator of newly issued shares, which dilute shareholder equity, is also completely at the discretion of MSTR. Therefore, it is a metric which confuses the conventional investor. A more suitable numerator will be using BTC dollar value, then the BTC yield can actually be negative to reflect declining BTC prices under an adverse scenario. But that will work against MSTR' favor to attract new, unsuspecting investors.
Sure, you can buy and sell MSTR as you wish on the open market. Except the idea with a stock is very different than a loan. In a loan, the principal is always repaid with interest or yield. Here, MSTR stock is not a loan. They are just using your hard earned money to buy a portion of the claim of BTC, from what you could've bought on just a normal BTC ETF. Given its 2.4 NAV premium, you are overpaying for the BTC portion. Overpaying by 47%. And the 53% BTC claim you have is on a gearing ratio of 30%, or a balance sheet leverage of 1.3 Obviously, MSTR stock doesn't pay dividends so there is no interest payment. Also the BTC yield metric they use is not to be confused with conventional yield for a bond. BTC yield is a ratio that measures the change in Bitcoin holdings to newly issued shares. This is a convoluted way of saying that MSTR will issue new shares (i.e. issue new debt in the form of STRK shares), and use these new shares to buy BTC. However, the twist here is that BTC yield will always be positive, even if BTC price goes down by 70%. This is because MSTR will never sell BTC. So the numerator of BTC holdings will always be positive, and always increase. The denominator of newly issued shares, which dilute shareholder equity, is also completely at the discretion of MSTR. Therefore, it is a metric which confuses the conventional investor. A more suitable numerator will be using BTC dollar value, then the BTC yield can actually be negative to reflect declining BTC prices under an adverse scenario. But that will work against MSTR' favor to attract new, unsuspecting investors.
Sure, you can buy and sell MSTR as you wish on the open market. Except the idea with a stock is very different than a loan. In a loan, the principal is always repaid with interest or yield. Here, MSTR stock is not a loan. They are just using your hard earned money to buy a portion of the claim of BTC, from what you could've bought on just a normal BTC ETF. Given its 2.4 NAV premium, you are overpaying for the BTC portion. Overpaying by 47%. And the 53% BTC claim you have is on a gearing ratio of 30%, or a balance sheet leverage of 1.3 Obviously, MSTR stock doesn't pay dividends so there is no interest payment. Also the BTC yield metric they use is not to be confused with conventional yield for a bond. BTC yield is a ratio that measures the change in Bitcoin holdings to newly issued shares. This is a convoluted way of saying that MSTR will issue new shares (i.e. issue new debt in the form of STRK shares), and use these new shares to buy BTC. However, the twist here is that BTC yield will always be positive, even if BTC price goes down by 70%. This is because MSTR will never sell BTC. So the numerator of BTC holdings will always be positive, and always increase. The denominator of newly issued shares, which dilute shareholder equity, is also completely at the discretion of MSTR. Therefore, it is a metric which confuses the conventional investor. A more suitable numerator will be using BTC dollar value, then the BTC yield can actually be negative to reflect declining BTC prices under an adverse scenario. But that will work against MSTR' favor to attract new, unsuspecting investors.
Saylor is now offering STRK - STRF to investors. Another method to acquire btc without putting pressure on the ATM. Thus increasing the total leverage allows for larger Mnav expansion. The btc per share is accretive to MSTR investors. If your long BTC then its much better to be long MSTR
Utterly absurd FUD. MSTR has a debt to assets leverage ratio of \~19% at BTCs current price. BTC would need to crash to \~18k and stay there for YEARS before the risk of a liquidation event would be necessary and MSTR would be required to sell bitcoin. Additionally, these 8-k filings have had the same wording in them, written by lawyers, for the entirety of their bitcoin strategy. This is NOT news, and purely a legal disclosure which MSTR maintain. The highlighting of this statement is just frankly fear mongering and direct FUD. As for payments of STRF and STRK, these are financed through ATM of the MSTR equity. It's not rocket science. The team at MSTR have so far done a very good job of managing their risk. Bitcoin backed financial products and the engineering of those is the business guys. Inherent btc volatility is what powers it. WHEN WILL YOU LEARN.
My portfolio is very green on the day, but I get that most of you aren't into MSTR, MSTY, IBIT, and STRK. So I guess a moment of silence for all the Mag7 folks.
They purchased 10.2 million dollars worth of BTC over the weekend. Probably sold STRK to purchase that.
I’m buying STRK (Microstrategy Pref A series). Coupon rate 8%. Estimated yield 5%~5.82%. Convertible 1/10th of MSTR stock. So as BTC goes so does MSTR. I think it’s decent place to park funds rather than the Money Market and when BTC is back in the public eye (and we all know it will) then I’m looking for capital gains plus the dividend.
mNav consolidating with Saylor about to purchase the BTC drop with 21b worth of STRK issuance.
Saylor has to pay out dividend on both MSTR and STRK, service operating costs, etc. His software business is the only thing generating cash flow. It isn't profitable. 100% of cash flow obligations are meet by selling MSTR and STRK shares. Old investors can only be paid by new investors. Hmmm wonder if there is a word for this.
A lot of people don't seem to realise that STRK is just a different type of share in the same company. Issuing them dilutes MSTR shares.
AFAIK dividend payments will most likely be in cash (not certain), but I was more so referencing that ATM stock issuance will cover the proceeds of the dividends. Shareholders also have the right to convert 10 STRK to 1 MSTR, but strategy can force conversion if MSTR reaches $1000. Don't quote me on it though I'm going from memory and it took me a while to process the whole convertible bond stuff and the intricacies of it all.
Valid point, in theory dividend payment is dilutionary over time yes... but STRK is sold at what... $90, but only worth 0.1 MSTR at conversion is is being sold at a hefty 3x premium to MSTR, this in itself counteracts the dilutionary effect of dividend payments and it is net accretive by a large margin. To add further, Strategy reserves the right to delay payment till next quarter etc. in adverse market conditions, or can force conversion if it reaches $100 a share I believe.
It certainly looks like a classic Ponzi scheme setup. Issuing more STRK to pay off earlier investors without any real income source is a huge red flag. Your puts might pay off if the market catches on.
So how do they now build another ponzi on top of STRK?
>Convertible Bonds: Why would Bondholders want to loan to MSTR (let alone at 0%)? Because the convertible bond has first position on the Bitcoin as collateral, and it contains an embedded call option that they can delta hedge to make money on shares regardless of price direction. The convertible bond holders do not care what the share price does... They're making money on the hedge (or the call, but they'd rather it didn't convert so they can keep hedging). >Preferred Shares: Why would Preferred Share holders want to own STRK? No clue. Strategy doesn't generate any real income, so there's no good way for them to pay a cash dividend. They can pay in shares, but that dilutes ownership and doesn't help them buy additional Bitcoin. In truth, I think it's just a low budget method for doing what I explained above via the embedded call option. >Equity Holders: Now these are the people that most think are the biggest victims of the "Ponzi Scheme". They are. Their job is just to create volatility for the convertible bond holders (and, *I guess*, preferred share holders). Plus, the extra cash they contribute provides excess collateralization for the folks with better claim on the assets.
Wtf is STRK?? Is it a new holding company for MSTR stock??
You are making a broad claim that any structure relying on new investors to pay old ones is inherently a Ponzi scheme, but are ignoring key distinctions in how MicroStrategy operates. Here’s where this argument is flawed: 1. MSTR Is Not Paying Dividends to Shareholders A traditional Ponzi scheme uses new investor money to directly pay returns to earlier investors. MicroStrategy common stockholders do not receive dividends at all—there is no ongoing payout structure like in a Ponzi. Investors are buying shares based on their belief in the company’s Bitcoin strategy, but returns depend on market price appreciation, not structured payouts from new money. 2. STRK Preferred Stock Does Not Force Immediate Cash Payouts Yes, STRK offers an 8% cumulative dividend, but the prospectus clearly states that payments can be deferred and rolled into the principal. This is common in structured financing—many companies issue preferred shares with similar terms. Deferred payments are not the same as a Ponzi payout; they are a credit obligation. If STRK holders don’t like the risk, they can sell. 3. Betting on an Asset’s Appreciation Isn’t a Ponzi Your analogy about “buying a worthless asset and hoping it moons” ignores the fundamental difference between speculation and fraud. Many investment funds hold assets (real estate, stocks, gold, etc.) expecting appreciation. MicroStrategy’s strategy is effectively a leveraged long Bitcoin position. You might call it risky, but not illegal. If BTC rises, their strategy works. If it crashes, shareholders bear the risk. That’s not a Ponzi—just a high-risk bet. 4. Illiquidity ≠ Worthlessness Saying, “An asset you can’t sell is worthless” is misleading. Bitcoin is highly liquid with a daily trading volume in the tens of billions. If MSTR started selling in large quantities, it might impact price, but that doesn’t mean their Bitcoin is “worthless.” Institutions hold large amounts of assets all the time without selling. That’s not fraud—it’s strategic holding. Final Thoughts You are mixing up high-risk speculative strategies with outright fraud. MicroStrategy might be making an aggressive bet on Bitcoin, but that doesn’t make it a Ponzi. Investors know the risks, and there is no structured obligation to pay out previous investors with new investor money. I’ll repeat, “Many investment funds hold assets (real estate, stocks, gold, etc.) expecting appreciation.” - these are not Ponzi schemes. The abuse of that term applied to any exceptionally successful unconventional company plan is, well, weak.
This argument is flawed in multiple ways, from a misunderstanding of corporate finance and convertible securities to a fundamental mischaracterization of MicroStrategy’s strategy. Let’s break it down. ⸻ 1. STRK Is Not a “Ponzi Bond”—It’s a Preferred Stock The author claims STRK is a “worst-of-both-worlds” bond/stock hybrid and implies it’s fraudulent. But STRK is a preferred convertible stock, which: • Pays a fixed 8% annual dividend (not a bond interest payment). • Allows conversion into common stock (MSTR) at a ratio of 10:1. • Can defer dividends, similar to some corporate bonds or preferred shares. There’s nothing inherently Ponzi-like about this structure—it’s a standard financial instrument used by many companies. ⸻ 2. Dividends Can Be Deferred—That’s Normal for Preferred Stock The argument claims that because MicroStrategy can defer STRK dividend payments, it’s effectively a Ponzi scheme. But many preferred stocks have this feature—it’s a standard design. • STRK dividends accumulate if unpaid, meaning investors are still owed money in the future. • The idea that a company deferring payments on preferred stock is inherently fraudulent is incorrect—many firms issue cumulative preferred stock precisely for this reason. ⸻ 3. MicroStrategy’s Debt Model Is Not a Ponzi Scheme The classic Ponzi scheme model is: • Old investors are paid with new investor money, rather than from real profits or value generation. • The scheme collapses when new investment dries up. MicroStrategy’s strategy is not this: • It holds Bitcoin as an asset, which it believes will appreciate. • It raises capital via debt and equity, like any leveraged investment strategy. • If Bitcoin appreciates, it can cover interest/dividend obligations by either borrowing at lower rates or selling BTC at higher prices. If Bitcoin were to collapse to near-zero, MSTR would be in serious trouble—but that’s not a Ponzi, it’s leveraged speculation. ⸻ 4. “MSTR Trades at 1.5x Its Bitcoin Holdings” Is a Weak Argument MSTR often trades at a premium to its Bitcoin holdings because: • Investors see it as a Bitcoin proxy with advantages (e.g., corporate governance, accounting benefits). • It has optionality in issuing equity and convertible debt, creating leverage on BTC gains. • Some institutions prefer buying MSTR over direct BTC due to regulatory reasons. Saying “it trades at 1.5x BTC value, therefore it’s a Ponzi” ignores investor behavior and market structure. ⸻ 5. Saylor’s Strategy Is Aggressive, but Not Criminal The argument that MSTR is extorting Bitcoin investors is a stretch. The claim that Saylor is using STRK as a threat to BTC holders (“buy my stock or I sell BTC and tank your holdings”) is pure conspiracy thinking. • Yes, Saylor is extremely leveraged on BTC. • Yes, issuing STRK helps avoid selling BTC. • But none of this is illegal, nor does it meet Ponzi criteria. At worst, it’s a high-risk corporate strategy. If Bitcoin tanks, MicroStrategy’s model collapses—but that’s not fraud. ⸻ 6. The PhD Author’s Investment Thesis Has Gaps The author: • Bought puts (betting MSTR stock will collapse). • Assumes markets will instantly recognize MSTR as a Ponzi and crash it. • Ignores Bitcoin’s price movement, which heavily influences MSTR stock. The risk? If BTC pumps, MSTR could rip higher, and their puts expire worthless. ⸻ Conclusion: Flawed Argument, Misuse of “Ponzi” This post misunderstands corporate finance, preferred stock, and leverage. STRK is not inherently fraudulent, and MSTR isn’t a Ponzi scheme—it’s a high-risk leveraged BTC play. The real risk? If BTC crashes, MSTR could collapse under its debt burden. But that’s not the same as fraud—it’s just bad risk management.
Whats the play? Fidelity says no shares to short STRK, Robinhood doesnt even have it listed.
STRK is not whst you think it is. It is a way to prop up the stock and pump Bitcoin at little cost. STRK has been trading above $85 for a while. So there is a 8 dollar divend per year(2 per quarter that will be paid out). What is likely being done is that $85 is being used to buy MSTR or more Bitcoin. At $85 essentially it is the equivalent of $850 price point of MSTR at 1/10 that gets exercised at $1000. So Saylor gets 3x times the price of MSTR to spend at a low interest loan of 8 percent max. It is akin to someone paying $850+ for MSTR and he can buy 3x+ MSTR at current prices($240 * 3). If the stock ever goes to $1000. He is paying less than ($150 + x * 8) where x is years before exercise for a profit of ($760 * 3) roughly when MSTR goes to $1000.
The holders of the STRK don’t really care about the 8% in terms of cash pay. The cash they will generate is from writing call options on MSTR. The main risk to them is that MSTR issues preferred and debt that exceed the value of the Bitcoin. The common sits below them so they don’t really care so much that’s he’s diluting them as long as the common has some value and people continue to trade it with volatility. I think Ken Langone’s character put it best to Madoff in the Wizard of Lies. I’m paraphrasing here but if Madoff was willing to screw his existing investors, why would Langone trust that Madoff wouldn’t screw him.
In terms of who’s buying STRK, it may be convertible bond arb funds and ETNs like MSTY. Seems like a way to get shares you can then write calls on but have security senior to common. Unless you think Bitcoin is going to zero, the preferred are well protected. Given the high volatility of the stock, you can get 50% annualized returns on the capital. I don’t understand why more people aren’t buying Bitcoin and shorting MSTR. But then again, I’m not doing as life is too short to be involved with this nonsense and there may be risks I don’t see. MSTR reminds me of the pre-IPO days of GBTC. People thought GBTC trading at a 40% premium was high but then it went to a 30% discount when Bitcoin collapsed in 2022. Seems like history could repeat itself here.
Ya I hear ya. The choice made itself for you. I might start a small DCA into MSTR for a few years and see how it goes. Also learn more about STRK. It's a lot to learn.
Thanks for the explanation. Bitcoin is the solution to the fiat ponzi. I hold BTC, but I don't know too much about MSTR. Learning more about STRK and MSTR.
You just now realizing this? Think of it this way, STRK is a ponzi, on top of a ponzi (MSTR), on top of a ponzi (BTC), on top of a ponzi (debt backed fiat currency)
In short, accretive dilution. Sorry I'm not able to explain this very well but Saylor has many videos explaining this, if it was easy to understand there wouldn't be hundreds of incorrect statements in this thread alone. Historically dilution has always been a bad thing for investors, the way that MSTR dilutes increases the bitcoin per share. They do this by selling in the bonds market and now via STRK. If you believe bitcoin will continue gaining value you should also believe in MicroStrategy.
STRK is such an interesting ticker. Right now it trades at ~86$, pays 8$ / year and can convert into 0.1 shares of MSTR valued at about ~$25. If your goal is to be long bitcoin over the long haul- this is one of the best vehicles that exists to do so. If you hold for 11 years, you make 88$ in dividends compared to the 86$ you are paying for the preferred shares today. On top of that they are constantly rotating between issuing new stock at the market, convertible debt (best way to think of this is selling covered calls that don't actually get your underlying called away- just end up issuing more shares ATM at a much higher price than today when they convert), and now preferred shares to achieve a btc/share yield. 11 years from now, once you've recovered your entire cost basis in dividends, the btc/share will likely be much higher than it is today and it's gonna be hard for btc to be worth less with the dramatic expansion of M2 around the world. I'm not sure there is a better way to go long btc if you want to be long for a decade. If you know of one- please let me know.
I submitted and received an IPO through Fidelity in both my Trad IRA and Roth IRA. Didn't think I'd get it but thought it was worth the hype that was around MSTR. I was pleased when I was notified of my allocation of 100 shares of STRK in each of my IRA's and then even more pleased when they reduced the price from $100/share to $80/share. The price is currently $93.17 and I'm looking to sell with about a 16.46% profit. I came here to see if I should consider holding longer. Any input. I'm realizing I basically got lucky lol.
I totally understand being bullish on BTC and MSTR (I'm long both), or being bearish on both. I'd be very careful going long btc and short MSTR long-term, though. NAV Premium will almost certainly expand from its historical levels in the medium/long term. It's definitely not obvious, but what Saylor is doing is beyond genius. BTC is the best performing asset of the last 10+ years. Growth is great; everyone wants growth. The problem is that not everyone can tolerate volatility, BTC's greatest strength and weakness. Creating derivative instruments with different risk profiles allows more people to invest in the world's best performing asset class. Are you a trader that enjoys scalping and/or theta strategies? MSTR's high IV is perfect. Are you a pension/wealth fund looking to preserve capital with upside exposure? MSTR convertible bonds are perfect. An individual looking to fund your retirement via dividends without long-term capital erosion? STRK is a great choice. So much of the dislike from MSTR comes from the downward pressure on its share price from recent events. At-the-market share sales perform accretive dilution: the share price goes down temporarily, but you the shareholder benefit immediately in terms of btc/share. Similarly, convertible bond issuance is followed by periods of heavy short-selling for the bond-holders to remain delta-neutral. Both mechanisms of BTC accumulation provide temporary drawdowns, but also allow MSTR to continue its growth at a rate greater than BTC (even before considering leverage, further amplifying returns) long-term. Adam Beck himself suggests that the folks long btc, short MSTR are going to get burned long-term. NFA DYOR, of course, but while MSTR is definitely not for everyone, it's a very powerful instrument for the right demographic(s) of the market.
What do you guys think of saylor’s STRK ?
Is anyone buying into Microstrategy’s preferred A stock?!? STRK. I read about it last week and bought in while BTC is off the radar and so far it’s up 8.68% and pays an 8% dividend. Convertible or hold for the dividend and the ride along with BTC value. I’m buying more as a hedge.
wrong sub for that vocab... Yes, there are dividend strategies that could work... anything that hits a 5% yield, on 2 milli would be 100k/yr wo touching the principal... STRK is doing 8%, so technically, 1milli would be 80k/yr, can live out the rest of your life in a lot of beautiful places living off of that.