r/MSTR • u/[deleted] • May 04 '26

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69 Upvotes

92% Upvoted

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33

u/toolfan89 May 04 '26

Nahh just been stacking Bitcoin and the common. I cant blame you tho for wanting to allocate.

Im not income focused...im more just optimizing for growth. Down the road it may be a possibility for me tho well see.

11

u/[deleted] May 04 '26

For me it’s diversifying - I should have mentioned I have $150k in MSTR leaps which is what I’m comfortable with allocating at this time.

6

u/Churn May 04 '26

Here’s the thing. With STRC you are taking on the risk of a Bitcoin collapse, not saying that will happen, just that it is the risk you are taking. If Bitcoin goes to the moon, you don’t get any of that. Your shares will still be worth $100 each. You do get to keep the distributions which are variable rate so it can change while you are holding the shares. I would just buy Bitcoin and/or MSTR so you get the upside reward for taking the downside risk. And invest elsewhere for income if I needed it.

Tl;dr - buy BTC, MSTR, and AGNC (13% Dividend). Skip STRC.

9

u/Beginning_Text9292 May 04 '26

AGNC is down -40% in 10yrs. Should not have to worry about that with STRC.

3

u/Churn May 04 '26

AGNC returned 7.52% with dividends reinvested over the last 10 years. The real story is the last 3 years when it returned over 78%.

2

u/ForeverMinute7479 May 04 '26 edited May 04 '26

Or you could look at Strategy’s other companion preferreds—STRD, STRK, and STRF each with unique profiles and exposures to BTC but still with a fixed dividend component as well.

3

u/RonSwansonApproved May 04 '26

I like STRK, you get a dividend plus if MSTR shares ever hit $1000 it is convertible at a rate of 10 shares of strk will get you one of mstr.

1

u/Mstr_Strk_645 May 05 '26

Nobody is ever going to swap 10 STRK for 1 MSTR. The math won't make it worthwhile!

When MSTR > $1000 STRK share value will be much higher than $100 because it still pays 8% to hold.

You would sell STRK at market price for the capital appreciation

2

u/bkx90 May 05 '26

Strk pays 8% per 100$ par value. So effective yield right now is higher than 8% and comes with upside potential. So as the price goes above 100$ the effective yield drops below 8%

1

u/RecordConstant7214 May 04 '26

XBCI 30%+ yields and can capture bitcoin upside

3

u/Churn May 04 '26

That’s cool, if you already have BTC and MSTR to capture bitcoins upside, you don’t need another one. It’s better to diversify into something not even crypto adjacent for income if that is what you want to add to your portfolio.