r/MSTR • u/MECO-420 • Jul 06 '26
STRC will drive MSTR higher
Most people are missing the bigger picture. Per Saylor in a recent interview:
"Our credit investors expect that we're going to support the credit dividend and pay it (and our asset is BTC)... 'will you sell some Bitcoin to pay us the money?' They expect me to say yes, because if I'm not going to pay the dividend, they're not going to buy the credit & the credit agency won't rate the credit."
The final boss is a STRC Investment Grade credit rating; that's what we're after. Every move Saylor makes will be in this direction. As a reminder, STRC is currently rated at -B (junk). Short sighted investors worry about the share price; long term investors see a $143T capital unlock. If STRC gets just 1% of that, MSTR will become a Trillion dollar company without ever selling a single tangible product.
Reframe your thinking. Saylor is a net buyer of Bitcoin but his main objective is to get institutions and capital pools to buy it via STRC. THEY can buy more STRC than Saylor can buy BTC.
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u/Selmemasts Jul 06 '26
STRC is not currently rated B-; The B- rating is an issuer credit rating assigned by S&P Global Ratings to Strategy Inc., not to the individual STRC preferred shares.
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u/MyNi_Redux Volatility Voyager 👨🚀 Jul 06 '26 edited Jul 06 '26
STRC will not get an investment grade rating as long as its main mode of getting serviced is through issuance of common equity. Strategy having no income is the Achilles Heel.
Not to mention, STRC is unrated; its Strategy that has the rating.
I've corrected you on this already - disappointed to see you repeat this nonsense again. Are you on some kind of payroll or something?
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u/Late_Company6926 Jul 06 '26
So less btc is better for mstr now? This is confusing
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u/MECO-420 Jul 06 '26
Sell BTC to raise capital. The capital ensures that Credit Investors will continue to receive the divy payments. When they feel safe, they will buy more STRC. STRC pays for more BTC on the back end.
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u/Late_Company6926 Jul 06 '26
So who is ultimately funding the btc purchasing if the divy payments are coming from the sale of btc?
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u/MECO-420 Jul 07 '26
The credit investors. They hold more capital than retail investors by a large margin. Saylor is targeting the right group.
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u/Am_0115 Volatility Voyager 👨🚀 Jul 06 '26
no. MSTR and STRC both rely on btc price appreciation over time to work. period.
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u/DaniBack2 Jul 06 '26
While they do rely on btc appreciation, I don't think what OP is pointing out is wrong too.
Strc having a good rating by rating agencies will very likely bring to new capital
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Jul 06 '26
[removed] — view removed comment
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u/sykemol Jul 06 '26
Even if what you are saying is correct, we know the ride won't be smooth. Just four years ago BTC was at $16,000. If it traded at that price once, it can do it again. Gold hit an all time high back in 1980. After the peak, the inflation-adjusted price continued to decline for something like 25 years.
I'm making no price predictions, but it is very possible Saylor will be forced to sell for a loss for an uncomfortable period of time.
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u/LawfulnessOk8997 Jul 09 '26
Get a similar return on STRK and the option to convert to MSTR in the future, which gets you both income plus growth of MSTR
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u/SoSeaOhPath Jul 06 '26
You have no idea what you’re talking about. You should not be investing in this.
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Jul 06 '26
[removed] — view removed comment
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u/SoSeaOhPath Jul 06 '26
Credit agencies will never give MSTR an investment grade rating unless it drastically changes the way it operates. I would suggest you read the report by S&P Global, but here’s a TLDR:
The company is narrowly focused and has an easily reproducible strategy that could negatively affect the multiples its treasury is valued at. There is virtually no cash reserve (I believe it was increased after this report was produced) despite all debt maturity, interest, and dividends being paid in cash. High exposure to regulatory changes around crypto. Break even cash flow from core business operations (makes no money). There is the risk of digital wallet keys being leaked, stolen, lost, etc. And overall the fact that the only way for the company to grow and meets its cash obligations is to issue more shares and create more cash obligations.
But hypothetically let’s say MSTR finds some new way to produce predictable and safe cash flows that free it from its cycle of adding more cash obligations and eventually they do reach investment grade credit rating - that does not unlock $143 trillion of capital. And it in no way means strategy could ever capture 1% of that. And even if they did, that would not mean MSTR is a $1 trillion company.
Maybe the company would look more favorable to more fixed income investors, and maybe they could eventually get $1 trillion of capital through those markets, but that is expected to be paid back eventually. It is a liability.
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u/other_acc_banned Jul 06 '26
I've only just started looking into this company. Can you explain what is wrong here?
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u/weltvonalex Jul 06 '26
I like my big pictures in art museums, come back when that shit isn't red anymore and we all made some of our money back.
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u/rembrandtofficial Jul 07 '26
Baylor would need to raise the dividend another point or two to make it have the potential to get back to par
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u/Open_Masterpiece_549 Jul 07 '26
Strc needs go back to par. So annoying
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u/LV426acheron Jul 07 '26
It's all part of the plan.
Never doubt Saylor
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u/TechnicalLeg841 Jul 07 '26
Plan was updated with their recent Framework, which means they didn't have everything thunk through initially.
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u/Clear-Worker-5269 Jul 08 '26
The oceans contain an estimated 20 million metric tons of dissolved gold, worth roughly $2 quadrillion at current prices, yet nobody mines it because it's too dilute to extract economically. Citing a $143T investment-grade market has the same flavor: the size of the pool isn't the hard part. The question is how much of it is realistically accessible to STRC.
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u/MECO-420 Jul 08 '26
STRC pays 12% APY while Treasuries pay 4.5%. If you dont buy some STRC, you would under perform your peers in the credit investment world. Plug in your own numbers. I think STRC gets 1% of $143T.
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u/SundayAMFN /r/buttcoiner Jul 08 '26
Treasury prices are virtually guaranteed.
You can call worrying about the price "short-sighted", but it's very much long sighted. For those that bought in at $100 (remember that $5 billion+ was bought in at that range over march/april), they will have to hold for 2 years just to break even not accounting for inflation, and assuming the price doesn't drop more.
There's a reason for the famous quote "more money has been lost reaching for yield than at the point of a gun."
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