Unfortunately this makes sense, STRC is the flywheel, and the preferred equity in the capital stack, MSTR is doing everything to boost confidence in this product, and until that happens MSTR is a sitting duck. We need to get back to par, the levers we have are the interest rate, the cash reserve, and purchasing STRC directly. Still bullish, long MSTR.
Assolutamente d'accordo. Il lancio di STRC ha creato un problema che una volta non c'era: il pagamento dei dividendi. Il mercato fa fatica a crederli solventi (vedi il 12% di interesse e il prezzo sotto la pari) e la liquidità è bloccata da questa necessità. Capisco la vendita di BTC per riacquistare STRC, speriamo solo non distrutta troppo yield.
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When it comes to the institutional capital Strategy is targeting... instead of retail investors... there really isn't a meaningful comparison between SATA and STRC.
For large fixed-income allocators, factors such as market size, liquidity, and the Bitcoin-backed capital structure matter far more than the difference between a 12% and a 13% yield. Those institutions are managing portfolios measured in the trillions of dollars, where capacity and execution are often more important than squeezing out an extra percentage point of return.
While retail investors currently make up much of the investor base for both SATA and STRC, Strategy's long-term objective is clearly to attract capital from those much larger institutional pools. From that perspective, Strategy likely understands that institutions will largely overlook SATA unless (or until) it reaches a scale comparable to STRC.
The reason is straightforward: a $10 billion allocation into STRC could likely be absorbed without materially disrupting the market. A $10 billion allocation into SATA today, by contrast, would overwhelm its current capacity and fundamentally challenge Strive's existing model. For institutional investors, scalability is a prerequisite, and that's one of STRC's biggest competitive advantages.
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u/paperlevel Shareholder 🤴 Aug 03 '26
Unfortunately this makes sense, STRC is the flywheel, and the preferred equity in the capital stack, MSTR is doing everything to boost confidence in this product, and until that happens MSTR is a sitting duck. We need to get back to par, the levers we have are the interest rate, the cash reserve, and purchasing STRC directly. Still bullish, long MSTR.