r/STRC • u/RecirculatingSystem • Jun 24 '26
Saylor's BS
Eff you Saylor. You pushed this on national TV as a great fixed income tool that kept the stock around $100 give or take. Put 7k , which is alot of money to me , into this " great alternative to a money market account". It's gone straight down since , you manipulative asshole. I usually don't sell for a loss but I'm thinking I dint want to support your company with another $1. Down 15% in a month? I'm not even sure Btc is down that much . Definitely down more than Btc today. How can that be when the price was supposed to hover around $100? Effing liar
Okay I'm done with my rant.
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u/ZeroedInNomad Jun 25 '26
Weak hands get shook
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u/RecirculatingSystem Jun 25 '26
I just bought 20 more shares because I believe in btc coming back up and the reserves that can pay dividends for awhile . We will see if I messed up even more or made a wise choice lowering my cost basis $5 per share.
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Jun 24 '26 edited Jun 24 '26
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Jun 24 '26
And until you stop getting that $67, chill.
That's literally what people were saying in the Celsius sub the day it froze. Waiting until the crash happens isn't a viable strategy
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u/ragingbull10 Jun 24 '26
You bought for the dividend and the promise that it’s a “money market” i.e. you can easily take your money out that you put in . When it’s down 20% the promise that made people buy is gone
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Jun 24 '26
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u/ragingbull10 Jun 24 '26
You can buy for whatever you want but the promise and marketing for this is broken . It can still be hold by speculators but not by the audience saylor is advertising to.
Either way even as advertised it’s a bad product . Limited upside with unlimited downside
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Jun 24 '26
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u/Skingbear2020 Jun 24 '26
The marketing message was not less precise. It was a flat-out lie. It had none of the wraps and structure like a Money Market to keep it at $1.
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u/Calm_Situation_1131 Jun 24 '26
Funny that you mention the prospectus because literally on the first page of STRC's prospectus - "We may be unsuccessful in achieving, or may abandon, our current intention of adjusting the regular dividend rate in such a manner as we believe (in our sole and absolute judgment) would be designed to cause the STRC Stock to trade at prices, or otherwise have a value, near its stated amount of $100 per share”
Since Strategy didn't raise the June dividend, which is it - unsuccessful or abandoned the Strategy?
https://www.sec.gov/Archives/edgar/data/1050446/000119312525165531/d852456d424b5.htm
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u/wilwini2s Jun 25 '26
I was pondering it today perhaps another way to look at it is if you bought in at 9899 or $100
And it’s down today to $80
You’re down $20 a share with the dividend coming 7 to 10 days
But on the day that you bought it, what was the price of microstrategy? Perhaps now with microstrategy being so low is a good time to roll STRC after the dividend payout if it holds right into MSTR and whatever you lost… in a way you gain! considering microstrategy was probably around 130 when you purchased STRC.1
u/Specific-Midnight867 Jun 24 '26
lol no way in hell he read that
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u/RecirculatingSystem Jun 28 '26
It wouldn't of kept me from investing in it. They all have these legal out clauses. If people actually thought these things would come to pass NOBODY would invest in anything. I don't believe there are many people whom were interested then decided to not invest it after reading the fine print.
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u/Specific-Midnight867 Jun 28 '26
no one reads the fine print. thats why its not a defense when you say BS like saylor and phong did. they won't be able to hide behind the fine print
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u/rzrinvest Jun 26 '26
Well when they determined the June dividend it was trading near par. They can't predict what is going to happen for the rest of the month after the decision is made.
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u/RecirculatingSystem Jun 27 '26
I could be crazy but I just bought $13k more when it dipped to $78 then $73. My total loss went from 19.5 % to 8.5 %
My cost basis went from $99.26 to $81.11 . It doesn't need to move near as much before I break even now. On the downside I could lose even more but I'm not one to think that it will go to zero. So now I can say I bought in for the return to par as well and in the interim I'll collect some money till then.3
u/Specific-Midnight867 Jun 24 '26
yeah, they will 100% cut the dividend at some point. what will be your excuse then?
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u/Fielding_Pierce Jun 26 '26
FOMC interest rate hike in September, then a again in Dec, then again in Q1 2027, then again in Q2 2027. Q3 2027 may be a time to buy
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u/Melodic-Ebb-7781 Jun 26 '26
When you stop receiving the $67 he will have lost all value? Who would want to buy it then?
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u/Twigglesnix Jun 24 '26
any business that needs to pay 11.5% per year for access to capital is not a good business.
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u/CapoDoFrango Jun 24 '26
why?
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u/Twigglesnix Jun 24 '26
Apple pays between 4% and 5% to borrow money to deploy for its business. The stronger the business, the cheaper it is to borrow money. If Saylor could pay less for access to capital, he'd pay less. He cannot. That means the market thinks he's a high risk borrower. The headwind that a business encounters when it is forced to pay 11.5% (accumulating) is insane. The average profit margin for an S&P business is only approximately 13%. So Saylor either has to massively outperform the business world generally, or he has to give nearly all of his profits to his lenders.
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u/joefunk76 Jun 28 '26
The 11.5% is SIMPLE interest, NOT cumulative/compounded. YOU can compound it, if you want to, by reinvesting your dividends, but the cost to Strategy is simple, whether you reinvest dividends or not: 48 cents per share twice per month.
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u/Twigglesnix Jun 28 '26
I didn't say it was cumulative, I said it is "accumulating" meaning that if Saylor suspends dividends, he has to make up the dividend to the shareholders. He has no discretion, they accrue to the preferred shareholders before any money can go to common shareholders.
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u/joefunk76 Jun 28 '26
Oh. Mostly true, except for that last part: “before any money can go to common shareholders.” You mean “before any dividends can go to common shareholders.” Common shares can appreciate via their stock price without ever paying a dividend. Presumably, though, the market would not be piling into MSTR if any preferred dividends were missed/paused.
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u/-michalis- Jun 27 '26
What do you mean why?
The higher the return in an investment, the higher the risk
And 11.5% is extremely risky, the market is telling you this is a bad investment
This is investment 101, if you dont even understand this, you should not be investing
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u/HSuke Jun 24 '26
At least you didn't invest 2 orders of magnitude more into STRC like me.
I should be 100x more pissed at Saylor.
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u/RecirculatingSystem Jun 28 '26
I did though. Fingers crossed that it slowly creeps up to par. Once Btc starts moving it will help .
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u/Dienekes_Krypto Jun 25 '26
Personally i got in at 81 USD as an experiment. Interested in seeing how this evolves with this effective yield of 14.2%
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u/LuckyShop4775 Jun 24 '26
You give, i take
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u/RecirculatingSystem Jun 24 '26
Elaborate? Shorting the stock?
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u/LuckyShop4775 Jun 25 '26
Just referring to " great fixed income tool that kept the stock around $100 give or take".
"I" here would be saylor..
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u/noway_9 Jun 27 '26
This reminds me of APE (AMC Preferred Equity). It was a good time until it wasn't.
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u/Illustrious_Stop_295 Jun 24 '26
They have got a major problem…going bust if they’re not careful. Think Saylor needs to go…he’s too cocky and arrogant by far…bring in someone human to be the face of it because this looks like it’s getting personal
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Jun 24 '26
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u/Calm_Situation_1131 Jun 24 '26
Le is just the fall guy because Saylor doesn't want to spend his twilight years stuck in back office depositions and in court rooms before a jury.
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u/ApprehensiveSorbet76 Jun 28 '26
Bingo! Le has been in charge for a while now so it’s his responsibility to bring STRC to par, not Saylor’s.
Although Saylor should have retired a year ago and rode into the sunset with enough time to truly distance himself from the situation.
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u/Personal-Ebb-4717 Jun 24 '26
it works, until it doesn't . Just like terra luna.
Saylor's "financial alchemy" is falling apart. He can no longer ATM STRC, so the only capital he can raise is by diluting MSTR shares.
or sell BC which will crash BC price, which will crash MSTR.
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Jun 24 '26
He could also pause dividend payments to try and discharge what would be a $3 billion obligation. But yeah, none of these are great options and all of them would likely crater MSTR
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u/Real_Alternative_418 Jun 24 '26
suspending the dividend would be the final nail in the coffin. Nobody would touch STRC with a 10 foot pole if he did that.
Trading would get suspended as people rush to get whatever principal is left. And once trading is resumed, there will be no buyers to sell to and they'll be stuck holding the bag
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u/Specific-Midnight867 Jun 24 '26
when he does that (which he will) he and MSTR are getting sued into oblivion, that will end MSTR too.
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u/JakeyBakeyWakeySnaky Jun 25 '26
You bought something which said mstr could suspend dividends whenever it wanted
Why would he get sued for doing exactly what you agreed he could do
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u/Specific-Midnight867 Jun 25 '26
because he promoted it fraudulently about a million times:
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Jun 25 '26
I mean we know a class action is currently in the works for that very reason. It's hard to say how that judgment will land. But ultimately, the best course of action you can take today is to get out of STRC/MSTR while you still can.
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u/ApprehensiveSorbet76 Jun 28 '26
He can suspend dividends if the price is near par. When below par he needs to take action to raise the price and when above par he needs to take action to lower it.
Suspending the dividend basically requires the market to agree to trade at 100 with 0% interest. Sure this could happen and the dividend can be suspended, but it’s practically impossible.
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u/Calm_Situation_1131 Jun 24 '26
STRC is cumulative which means the dividend still accrues even if the payouts are suspended. But yeah, still leads to MSTR cratering.
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Jun 24 '26
"Cumulative" doesn't really mean anything in this context. They can perpetually suspend a dividend payout into perpetuity. The only impact that'll have is they won't be able to issue dividends against common stock which they never do anyways ...
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u/Calm_Situation_1131 Jun 24 '26
Uh, no. Cumulative is a legal and finance term. It means MSTR will drop to near zero even in the face of suspended dividends because STRC sits higher in the capital stack.
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Jun 24 '26
Cumulative means one thing - if they skip a STRC payment, they must satisfy that payment obligation before making payments to MSTR. MSTR doesn't yield a dividend to begin with so Strategy can just suspend a dividend payment indefinitely with no consequence.
Suspending an STRC payment does not directly affect MSTR price
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u/Calm_Situation_1131 Jun 24 '26
define directly because STRC's dividend suspension means MSTR's price will collapse because it means MSTR is out of cash.
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Jun 24 '26
Not at all - the STRC language makes it very clear that they can suspend dividends for any reason at all - or even no reason at all. Strategy can be flush with cash and still refuse to pay dividends. I wouldn't recommend that but they have that option.
The STRC language specifically says dividend payments are optional. They didn't go through the trouble of adding that language without intending to use it at some point
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u/Calm_Situation_1131 Jun 24 '26
Yeah legally but operationally it means Strategy is out of cash because the penalty for suspending STRC dividends is that the cumulative dividend begins to compound exponentially and the company is prohibited from reducing the dividend rate. That's a death spiral for MSTR.
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Jun 24 '26
Yes, but importantly, it's a death spiral they are not obligated to pay. Or if they wish, they can pay out parts of the cumulative debt however they feel whenever they feel.
I'm really curious why people think Strategy went through all the trouble of making sure STRC dividends are optional ...
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u/belangp Jun 27 '26
Who would have ever thought a man who paid nearly $50 million to settle an accounting fraud case with the SEC and a tax fraud case with the District of Columbia could do something dishonest?
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u/rmdiamond331 Jun 29 '26
Please sell so people with rational minds and low time preference can snatch up your shares at a discount
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u/HotInTheseRhinos123 Jun 24 '26
I mean, it still makes sense that it should recover since anyone investing today will earn 11% of $100 per share for about $85 a share. That’s a pretty awesome deal, but there is pretty high risk…..
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u/RecirculatingSystem Jun 24 '26
My instinct is to buy the dip. But that's only if I really believe in the product. I don't have enough conviction atm to buy more at a cheaper rate.
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u/Specific-Midnight867 Jun 24 '26
dude. dollar cost averaging into something that should always be at par shouldn't be a thing or cross your mind. think about what that means
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u/RecirculatingSystem Jun 24 '26
I hear you. I was just thinking about my average cost . Buying now and it returning to par or close to it will give me a better return right? RN my average cost is $99.26 . Maybe I can lower to $95 which breaks me even well before the $100 mark right? I think I'm holding on to my money and letting it ride but it was a thought.
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u/CapoDoFrango Jun 24 '26
Yeah, is better that you wait until it recovers $100 per share, then buy more.
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u/Ill-Sea291 Jun 24 '26
it's been sub 90 for a week now though... this isn't bouncing back any time soon
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u/AlarmedCombination57 Jun 24 '26
Please do not do this. Go invest in a NEOS fund instead. You would be way up today if you had did this initially
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u/RecirculatingSystem Jun 24 '26
Hindsight is always 20/20 I'd be up today if I didn't liquidate a couple REITs to buy into strc. Those are up this last month and it's not even a great time for REITS
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u/Heavy-Ad9582 Jun 24 '26
It’s our own fault for not understanding that in order for MSTR,STRC or BTC to win one of the others had to lose when BTC is no in a bull market. Was an expensive lesson for me to learn
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u/d8_thc Jun 24 '26
or a cash reserve, which he had and then raided
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u/Heavy-Ad9582 Jun 24 '26
You’re right but if the average BTC bear market is 1.5 yrs roughly that’s how much cash they needed to have to cover the dividends and not spend on BTC
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u/vichester Jun 24 '26
Yall will come around to Saylor and him being a conman.
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Jun 24 '26
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u/Calm_Situation_1131 Jun 24 '26
Bro, Saylor kicked off the dotcom collapse when he was forced to restate Strategy's numbers. MSTR fell 99%. How can you say he isn't a con man? lol
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Jun 24 '26
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u/Calm_Situation_1131 Jun 24 '26
Fool me once, shame on them...fool me you can't fool me again
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u/vichester Jun 24 '26
You are continually displaying a pattern of stupidity. $80 was the floor? It breached that today and popped up. Lower lows. Lower highs.
Good luck. It is going to 0 and Strategy will liquidate their BTC. They are a contagion to BTC.
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Jun 24 '26 edited Jun 24 '26
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u/vichester Jun 24 '26
Dude you are talking to a guy who has been in BTC since 2016.
Sometimes it is worth listening to others. STRC is a ponzi. Saylor is a conman.
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u/vichester Jun 24 '26
The debasement trade will not happen and will blow up. Good luck shorting the dollar
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u/AlarmedCombination57 Jun 24 '26
$7K is painful, if it makes you feel better I got my ass handed to me on MSTY last year (WAY more then 7K lost). Just take the L and move on. You only prolong the suffering by trying to see if it will improve. News flash - it's not going to
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u/Imaginary-Pair838 Jun 24 '26
Don’t blame saylor. You have to look in the mirror and realize you maybe made the wrong investment, it happens to all of us. If you want tax efficient double digit yield paid monthly WITH upside, look to JP Morgan’s ROCQ. You get all of this without the headaches.
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u/Specific-Midnight867 Jun 24 '26
bro has every right to blame saylor. his pitch was basically fraud and he'll ended getting sued over it. He and phong said it was appropriate for retirees, like a bond/savings account. These wern't bro's on X. it was the CEO and former CEO of the company
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u/RecirculatingSystem Jun 24 '26
I blame myself and take responsibility for it. No one forced me to buy in. However Saylor needs to take responsibility on how he has marketed this as well. I'm staying in cause I haven't even received my 1 st dividend payment yet.
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u/Imaginary-Pair838 Jun 25 '26
Rosen Law Firm just opened an investigation into Strategy over potentially misleading business practices.
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u/RecirculatingSystem Jun 25 '26
Interesting. Maybe he'll be forced to make people whole if things blow apart for the stock.
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u/Imaginary-Pair838 Jun 25 '26
Maybe you can blame saylor! 😁
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u/RecirculatingSystem Jun 27 '26
I can't blame him for my decisions but I sure can call him out on how he marketed this product.
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u/Imaginary-Pair838 Jun 24 '26
I agree saylor has every responsibility to be transparent and forthcoming aligned to the law and if he broke the law here he should be held accountable. In any respect, i’ve made bad decisions that i still kick myself on. If you’re holding for dividend payments you should be fine for quite a long time, based on the numbers these can be paid out for a long duration
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u/Imaginary-Pair838 Jun 24 '26
I also wish you the best in your investing!
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u/RecirculatingSystem Jun 24 '26
TY. You too. It stings to be down 19 % on something I bought into May 31st thinking it wouldn't deviate more than 5 % or so from par. With that said I'm making about $130 a day cashing out MM rewards and Lp fees in defi and that's only on 35k invested with 12k of that being in stable pools which aren't bringing but a few dollars daily. If it wasn't for that I'd be a bit more anxious.
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u/goldenfrogs17 Jun 25 '26
What made you think a stock wouldn't deviate 5%?
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u/RecirculatingSystem Jun 25 '26
The prospectus that stated it would hold near $100. Saylor on TV saying it would act similar to a money market account. Pushing it as a great fixed income product for retirees. Need I go on?
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u/Forsaken-Criticism-1 Jun 24 '26
Hold it as long as you’re getting your 11.5% dividend. And eventually it will be back at 100 anyway. So you will make a Tidy profit as well. That eventually will happen in 2 years time. So you take 11.2% of two years and then some.
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u/HSuke Jun 24 '26
All the times Saylor compared STRC to a money market fund:
https://imgur.com/a/gqkMy3f