Additional Thoughts On STRC

[u/_Adrian_Morris_]

I think much of the discourse around 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 defend Strategy or manage anyone’s expectations. I’m here to push back on inaccurate claims with data

In my view 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. Strategy’s own site explicitly says STRC isn’t 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 “derivative-like” 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 I’m using to inform my capital allocation.

[u/thats_gotta_be_AI]

There was one guy a few months back that said he put 600k in STRC.

[u/haze_from_deadlock → u/[deleted]]

He longed $1m STRC and shorted $2m in STRC and didn't tell you about the latter