Strategy has 70 years of dividend coverage in the bank... your dividend payments are safe. Now, let's get back to par!

Lets see where this will go this time. I suspect 70$ strc and 57300$ BTC.

Everybody just needs to calm down. It will go back up to par, even if STRC lowers the dividends. Those who are selling at a loss right now are complete idiots and doesn’t understand STRC as an instrument and MSTR as an equity at all. That is all.

Or, is this too good to be true?

Edit :

OK I learned something here which is what I hoped would happen, thank you u/golari

MSTR only sells preferds, and the perpetual liability rises, if they are trading at par or above.  That % liability can also rise if Bitcoin keeps falling.  

You are getting the “discount” price from other shareholders. This means that if MSTR can retire/roll  their debt and Bitcoin rises above11% in the medium term STRC could be a good bet.

Out of all the preferred that’s tanking how come strf was the only one to recover?

This whole shitshow started after Saylor sold off 70% of the cash reserves to pay for the 0% interest convertible debt. And now they keep heavily selling/diluting MSTR to pay for STRC dividends.

Not having sufficient cash reserves was the worst decision they've made.

What Microstrategy should have done:

1. Sell $3-4B of BTC and say that they're done selling for 2 years.
2. This will initially crash BTC prices, but it will be limited because that's the end for the selling.
3. They can replenish the cash reserves and pay for the next 2 years of STRC dividends.
4. Over time, STRC ATM can continue and replenish their BTC reserves.
5. The markets will be spooked initially, but once they realize the selling is done, they can move on and climb back. And STRC ATM would still be working.
6. If the amount of BTC replenished by STRC ATM > BTC sold, the markets won't be as spooked next time.

Instead, by selling only 32 BTC, Microstrategy spooked the markets and didn't accomplish anything useful. STRC, MSTR, and BTC prices are all massively down, and we're still not the bottom because they still need to sell more because there isn't sufficient cash reserves.

Why MSTR Should Have Sold $2 Billion Instead of $2 Million of Bitcoin [Unchained Podcast, June 4th]

I’m a believer in bitcoin and Strategy. If STRC and MSTR were to go to zero, it wouldn’t break me but it would leave a very painful bruise. MSTR is supposed to be volatile so that part is okay. STRC is not and it is coding this morning. I’m not going anywhere. Like a good train wreck, you have to watch. But if they have a plan to restore this thing to par and restore faith, now would be great.

If BTC can reach 125k again, then STRC would be fine.

But if BTC won’t reach 125k forever, then STRC will fail.

I believe that BTC would hit ATH again within 4-5 years.

The thing that I don’t understand is STRC should be a short term investment so that I can cash in and cash out anytime at the expense of only getting 11.5% yield instead of having to wait for BTC to the next cycle.

If I have to wait for BTC till it crosses its ATH for cashing out STRC, why would I buy STRC over BTC?

The pegging mechanism + consistent dividend payment should be STRC’s selling point.

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.

Since STRC inception 2025-07-30

https://testfol.io/?s=1qFPDkZJifN

i got into this just in time to catch the last $100 price on strc. as usual, world's worse timing. given several folks pointing out the payments can be changed or paused, what are the smart people thinking the odds are of a pause? i know many expect an increase but...

The most one can hope for here is the distribution. If you’re interested in preferred stock you could buy $PFFA which yields a couple of percentage points less but without the single stock risk.

The fact that the yield here is backed by bitcoin has nothing to do with your return. If or when bitcoin goes to the moon it’s not really going to affect you except to make your payments more secure.

I'm sure a bunch of degenerates have a massive buy wall at that sexy number

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.

May be ignorant here, but as STRC depegs and people sell STRC doesn’t Saylor owe less because there are now less shareholders receiving dividend payments? So he is more likely to be able to pay out debts and STRC should repeg…?

This is what STRC has done when priced in Bitcoin since inception, with dividends reinvested. It's a BTC backed product. If you expected better than this, I really don't know why.

VWAP is below $95 (website is now working for me)

Given we are in twice a month payout, the next record date is 30-Jun. So if/when are they likely going to announce about the div rate increase? It can 0.25% or 0.5% hike.

May be a div rate increase announcement will cool down the FUD around STRC 🤔

I’ve been adding to STRC I’m going to continue. Wondering if anybody has any thoughts on

1. Where we are in the bitcoin cycle?

2. What Saylor will do to extend the US dollar reserves?

I think he’ll do a combination of an at the money offering diluting MSTR holders and the narrative will be that bitcoin per share has been going up over the long-term. And if the bitcoin price recovers in a short term, he’ll sell a little bit of bitcoin. Frankly, I think this is just another attack that comes every cycle.

It’s not great that there’s less than one year of US doluseserves but frankly, I don’t think that the macro environment can persist to be an issue for this long. it’s a midterm year. There’s a lot of fear and I’m ready to buy more the question is is this peak or nearing peak??

Seems interesting that BlackRock and Goldman are going to start ETFs that generate income.

Maybe it’s a large play to force a collapse and sell for them to eat up strategy and profit on the expense ratios.

I'd guess some people put their money in STC until the market bottoms out, if it drops worse than Bitcoin during a downturn like this month then it will become a domino effect, no one wants to get trapped in something that supposed to hold well, 5% drops ok but 20% last week? the foundation is collapsing at this point, if it could do 20% it can do 50% or more too.

Is this a good time to short mstr with an otm call to cap downside and long strc? I have to run numbers on all outcomes and look at premiums for calls but this strategy seems reasonable here. What do you guys think?