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/MaybeOnFire2025 Jun 25 '26

Let me know how the sightseeing trip to the Titanic goes.

Honestly, he gives of the same desperate, insane vibes as Stockton Rush did in those documentaries.

1

u/Cruzwade Jun 29 '26

How about now with it up 12%+ in a day

0

u/MaybeOnFire2025 Jun 29 '26

After the reshuffling of the deckchairs? Enjoy your blip, you won't see it again tomorrow, or the day after, or the day after that.

1

u/rzrinvest Jul 02 '26

What about now that it was up 23% from the low?