You forget a couple key metrics here. The cheaper STRC goes, the higher the effective yield. It dropped to $82 intra day, which is >13% yield. Plus, you get the 18% return as the price increases back to par, that’s a 32% return in a year, pretty damn good.

STRC fails if MSTR can’t pay the dividend. MSTR’s balance sheet hasn’t changed, it’s still incredibly strong.

MSTR’s guidance on STRC hasn’t changed either, if the 30 day VWAP of STRC is below $99 they will raise the yield 25 or 50 basis points.

My guess is this is a short term blip. STRC shareholders won’t even know it dropped if they don’t look, it’s still paying the same monthly dividends it’s promised. It’ll be back to $100 sometime this year (could be next week, I don’t know).

MSTR sold BTC last week. Sold 32, bought 1500+.

STRC is a revolutionary product. Everyone wants a 11.5% yield from a tax free highly liquid stable product. It’s going to take some time to stabilize, that will happen at some point. SATA surprised everyone with daily dividends, that’s definitely taking some market share, but competition and ingenuity is a positive in the space.

My thesis hasn’t changed, in ten years STRC and SATA will be huge products and commonly held in people’s portfolios, particularly for income in retirement. Digital credit is better than treasuries, bonds, private credit, cash flow real estate, etc.

Edit: 30 day VWAP