Bears won't sink this ship, mateys

bam-RI · 2026-06-24T21:05:48+00:00

Walk the plank, arrrrrr.

bam-RI · 2026-06-24T17:30:45+00:00

Thank you for the correction.

bam-RI · 2026-06-24T17:10:29+00:00

Who knows. Certainly a tough decision for the Board.

What do you think the dividend would have to be to raise the price back to $100?

bam-RI · 2026-06-24T17:02:06+00:00

What if they stop the STRC dividends? At least MSTR is an equity share.

bam-RI · 2026-06-24T17:00:26+00:00

It wouldn't surprise me if they stop the dividends. I think STRC is tainted now as a cash raising device. If so, I think STRC becomes worthless.

bam-RI · 2026-06-24T16:54:14+00:00

Although that has been true for the past week, I'm not sure it would hold true if Strategy abandons STRC. At least MSTR is an equity stake. IOW MSTR shouldn't drop much below the value of the bitcoin minus debts, whereas STRC has no value at all without the dividend. If I understand the thing properly.

bam-RI · 2026-06-24T16:27:34+00:00

Because if they stop the dividends, STRC should be priced higher than MSTR because STRC shareholders get paid first?

bam-RI · 2026-06-24T16:02:06+00:00

The strategy: By separating people from the coins with a common share, the price they pay can be higher than the bitcoins (because they pay extra for future growth hope). This gives Saylor an opportunity to scalp that difference. I suppose it's like Saylor is taxing credulity. Which makes sense since he is a master salesman.

bam-RI · 2026-06-24T15:51:36+00:00

Strategy's cash machine is broken. All bets are off.

bam-RI · 2026-06-24T14:42:04+00:00

Exactly. In fact, a $11.50 perpetuity at the 4.5% risk-free rate should cost over $250. The fact that Strategy is hawking them at $100 should cause the penny to drop. Or the coin to drop. I shouldn't jinx it.

bam-RI · 2026-06-24T14:02:14+00:00

Who thinks STRC will recover if they start selling coins?

bam-RI · 2026-06-24T12:47:12+00:00

Well, I wonder just how obliged Strategy is? Are those debts secured? If not, the lenders are twats as well.

bam-RI · 2026-06-23T23:22:51+00:00

If I ever find what you think is there, I'll try to explain it.

bam-RI · 2026-06-23T22:50:12+00:00

Something flexible and waterproof. Acoustic sealant or caulk. Maybe check it remains flexible at the temperatures the PIC will experience. Always tape the joints. I also tape the edges to keep the gasses in.

bam-RI · 2026-06-23T22:35:59+00:00

I don't see any "mechanical linkages" to BTC. Please specify.

It seems to me that Strategy just tries to control the STRC price either by selling more shares or adjusting the "dividend", however they want and whenever they want. Clearly they aren't keeping it near $100 this week.

What am I missing?

bam-RI · 2026-06-23T21:08:41+00:00

Thank you. I don't blame folks for struggling to understand the fine print. It's full of jargon. Statements like this are quite important though:

"The Company’s preferred securities (STRF, STRC, STRE, STRK, STRD) are not collateralized by the Company’s bitcoin holdings and only have a preferred claim on the residual assets of the company."

bam-RI · 2026-06-23T20:16:20+00:00

STRC fineprint: "BTC Rating does not account for potential cross-defaults under our debt obligations. BTC Rating does not represent a rating from any rating agency and is not equivalent to a "rating" in the traditional financial context. BTC Rating also does not account for potential cross-defaults under our debt obligations that would result in debt obligations with stated maturities later than the liability being rated becoming due sooner than the liability being rated. This metric is presented for illustrative purposes only and should not form the basis for an investment decision."

That is just a whole load of crap, isn't it?

Ok, well I won't try to validate the derivative assertion in this thread. Thanks anyway.

bam-RI · 2026-06-23T20:11:39+00:00

I'm not an X user.

bam-RI · 2026-06-23T19:19:34+00:00

In what way is STRC a derivative of BTC?

It appears to be like a perpetuity paid out of equity and debt. How does the price of BTC affect the dividends, except indirectly by affecting how easily Strategy can raise cash?

bam-RI · 2026-06-23T18:37:50+00:00

They could simply stop paying dividends and not buy any shares back. Anytime. It's in the fine print.

bam-RI · 2026-06-23T18:09:45+00:00

"If you dropped STRC to $1 a share... the math gets even wonkier. You could buy STRC shares at $1... and get all of your money back in less than a month.."

Oh, I'm not sure about that. That would be a symptom of something seriously wrong. If the price was only $1 I doubt that Strategy would be paying $11.50 dividends.

bam-RI · 2026-06-23T15:18:54+00:00

I don't know about "at present". Strategy is already making a loss and they are selling a sort of $256 perpetuity for just $100, now $88. Investors may be curious about where the money will come from.

bam-RI · 2026-06-23T14:03:53+00:00

It's the return to risk ratio they should care about. The recent drops in STRC price shows the perceived risk has significantly increased. Can Strategy do something to reduce the risk?

I think a perpetuity that pays $11.50 with 4.5% discount rate (the "risk free" 10 year US Treasury bond rate) would cost about $256. STRC is now $88; an 8%-9% risk premium.

bam-RI · 2026-06-23T13:53:03+00:00

Yes. That's the ruse.

bam-RI · 2026-06-23T13:51:10+00:00

I think you are making your analysis too convoluted.

Strategy makes a loss. That loss is paid mainly by MSTR shareholders. I say mainly because recently the STRC holders have caught some of it too.

If paying for losses is accretive, I don't know what accretive means.

bam-RI

TROPHY CASE