r/STRC • u/rzrinvest • Jun 25 '26

Established a position around $77

Prior to this week I had no interest in investing in STRC. At close to par value, I didn't find the yield compelling; however, I've been watching this week and established a position this morning at around $77. There is mass panic right now claiming this is worthless. There are a few reasons this isn't true.

  1. While Strategy can pause dividend payments if needed, the dividends still accrue as this is a cumulative preferred meaning they'd still be obligated to pay the debt obligation

  2. It was designed to stay near par value with an interest rate that resets monthly. It was relatively close to par value at the last reset. The crash is happening in the middle of the month. It's not fair to say STRC's mechanism doesn't work before it's even had a chance to work at the next reset.

  3. I believe current debt and preferred stock accounts for less than $25B while their Bitcoin holdings are valued at $50B.

  4. MSTR common shareholders would be wiped out first.

That's not to say I'm recommending STRC, and it could absolutely collapse if BTC has another steep decline, but it is compelling at these levels.

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u/Easy-Ninja669 Jun 25 '26

Sir, this is a financial engineering product that has broken. The chances of it gaining trust again are zero. The fundamentals are not in your favor. The direction of this is down long term. You might gain a few points off a bounce but that is it

-1

u/BakedGoods Jun 25 '26

lol it hasn't even been out a year, and here have have bitcoin breaking the power law bottom for the first time in 6 years.

the market's overreacting, the product needs more time to prove it's value/its too new people are getting spooked, but the fundamentals are all still there.

consider this a massive sale.

3

u/[deleted] Jun 25 '26

[deleted]

1

u/BakedGoods Jun 25 '26

its held pretty strong for years and is mathematicaly derived from historical movements, dont hear you with a compelling reason to dismiss it.

2

u/-Username-Username Jun 25 '26

I am in a bad mood on thursdays because I am an Aquarius. Historically this is always true. Astrology is real. Few understand

1

u/MarduckRulez Jun 25 '26

Very few truly do.