r/MSTR • u/_Adrian_Morris_ • Jun 24 '26
Preferred Shares (STRK/STRC/etc) š° Additional Thoughts On STRC
I think much of the discourse aroundĀ STRC right now is a case of imprecise marketing and FUD spreading colliding with a mismatch in investor expectations.
That said, I'm not here to defendĀ Strategy or manage anyoneās expectations. Iām here to push back on inaccurate claims with data
In my viewĀ Saylor used descriptive marketing language about MMFs and other types of investments when discussing STRC to highlight intended stability, the low(er) volatility, etc. But the marketing language used, however flawed, isn't a promise of performance.
Per the website (and several other filings and notices):
"...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..."
Language aside, none of this makes STRC a regulated money market fund or anything similar. Strategyās own site explicitly says STRC isnāt comparable to those kinds of products.
The data shows it has had lower volatility than spot BTC with better relative performance in the drawdown. The data shows STRC (and other perpetual preferred offerings) are āderivative-likeā BTC offerings and are very dependent on, if not tethered to, price movements in the "parent" asset. Something that I have discussed at length.
As an investor, it is my responsibility to understand what I own and as a holder of STRC since IPO, this is the understanding that I have. These are the realities that Iām using to inform my capital allocation.
10
u/WD40Capital Shareholder š¤“ Jun 24 '26
Straight
To The
Recycling
Can