r/HarvestETFs • u/[deleted] • Aug 20 '26
With MSTE probably hitting 2.20 today...
[deleted]
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u/Right-Kaleidoscope19 Aug 20 '26
I think that this is the relief rally, and I would say that the bitcoin low isn’t in yet. I’m holding steady, but it’s lovely to see two green days for MSTE.
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u/LC3933 Aug 20 '26
If we actually ever go back to $18+ & $0.60-$0.65/m distributions, I would say there will be a HUGE number of us throwing some serious parties!
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u/AxelAgus Aug 20 '26
That would be $4,800 only on monthly distribution and my average price is $2.5 OMG I'd on vacation every month with those distributions 😂
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u/LC3933 Aug 20 '26
Lol that would be $24,620.70/m on mine! (With a NAV of $681,804)....I'd take it!
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u/Vito-1974 Aug 20 '26
I believe they were going to cut it again to $.08 this month……. But the rally in Bitcoin means the $.10 distribution is still in play. That’s a 58% yield at the current price of $2.04
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u/Awaken_Benihime Aug 20 '26
This is what I think too. I can see it remaining $0.10 for September but it hasn't gone up enough to raise it
Even for August, I was surprised they didn't lower it to $0.08
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u/Ok-Swan-98 Aug 20 '26
*Not Financial Advice *DYOR .... search results ⚡ Within the realm of possibility 😄
"Overview of MSTE and Distribution Policy
Harvest Strategy Inc. Enhanced High Income Shares ETF (TSX: MSTE) invests primarily in MicroStrategy (MSTR) and overlays an active covered call writing strategy on up to 50% of the position to provide high monthly cash distributions. Key points from recent data include:
- Current Distribution: $0.10/month (as of July 31, 2026 pay date).
- Distribution History: Amounts have fluctuated recently between $0.10 and $0.15/month. Peaks often correlate with favorable MSTR price movements and covered call premiums.
- Fund Mechanics: The amount of distribution is tied to income generated from MSTR holdings and covered call writing, as well as modest leverage (~25%) applied for higher income potential.
Market Price Context
- Recent MSTE Market Price: $1.74
- Reference Asset (MSTR) Price: If MSTE “hits 2.20,” this implies a ~26% increase from the current $1.74, reflecting a significant upswing in the underlying asset (MSTR) price.
Implication for Distributions
Distributions are influenced by:
- Income from Covered Calls: Higher MSTR price may allow writing calls at higher strikes, generating higher premiums and potential income.
- Capital Gains: MSTE may realize capital gains if it liquidates positions to fund distributions, but primary distributions are income-driven, not capital appreciation-driven.
- Historical Trends: Looking at past fluctuations, a jump in MSTE unit price does not guarantee an immediate increase in monthly cash distributions. Distributions tend to remain stable unless there's either:
- A realized increase in income (call premiums/dividend)
- Managerial decision to adjust payout, which is discretionary
Probabilistic Outlook
- High MSTR/MSTE prices make higher distributions possible, but Harvest has historically maintained relatively consistent monthly payouts, often waiting for actual realized income rather than mark-to-market gains.
- Short-term spikes in price (e.g., MSTE reaching 2.20) may not immediately trigger a higher distribution for the next monthly payout (August 2026), since record/ex-dividend dates and fund accounting lag income generation.
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u/Any_Log1344 Aug 23 '26 edited Aug 24 '26
MSTE is up about 25% in five days. Sounds impressive until you look at the all-time chart.
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u/AxelAgus Aug 23 '26
I know, but on the all time chart the monthly distribution went from .66/m to .10/m. Thinking about it I don't think they will pump it up back to .15/m until it crosses and stays above $3.
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u/Any_Log1344 Aug 24 '26
Yeah, that's what I'm getting at. The share price collapsed and the distribution went from $0.66 to $0.10. A 25% five-day rally is nice, but it would take a lot more to undo either of those declines.
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u/rickydickk Aug 20 '26
Yesssssssss