Say something that might offend people—don’t buy MSTR for now.
Some friends have asked: why not buy $MSTR , but instead buy $STRC ?
Because MicroStrategy has been issuing more MSTR for 2 consecutive weeks, but it hasn’t used this new money to buy BTC.
That’s why since July, the MSTR/BTC ratio has been in a downward trend.
┈➤ At this stage, buying MSTR may be worse than buying BTC directly
Even if BTC rises, MSTR may not follow.
If BTC surges by a large amount, MSTR might also go up, but the upside may not keep pace.
So don’t buy MSTR in the short term. If you’re bullish on the trend, just buy BTC.
┈➤ Don’t look at the upside potential of STRC as smaller than MSTR
MicroStrategy’s strategy right now is to sacrifice MSTR to rescue STRC. The goal is to pull STRC’s price back to around $100.
Take a look at the MSTR/STRC ratio—it’s also been in a downward trend since July 1.
Don’t just assume that because MSTR has more room to rise, STRC can only rise to $100 at most.
STRC also pays a dividend once every half month.
And STRC’s current market price is $86.89, but dividends are calculated based on a $100 par value.
STRC’s nominal dividend yield is 12%, but the actual dividend yield is 12/86.89 = 13.81%.
┈➤ To wrap up
Only when STRC returns to around $100—ideally when it stabilizes—then it may be a good time to buy MSTR.
Because once STRC stabilizes around $100, MicroStrategy will most likely continue issuing more STRC and buying BTC. They might even sell BTC to repurchase MSTR.
For MicroStrategy, STRC is the short-term target, and MSTR is the long-term target—but not right now.
Some friends have asked: why not buy $MSTR , but instead buy $STRC ?
Because MicroStrategy has been issuing more MSTR for 2 consecutive weeks, but it hasn’t used this new money to buy BTC.
That’s why since July, the MSTR/BTC ratio has been in a downward trend.
┈➤ At this stage, buying MSTR may be worse than buying BTC directly
Even if BTC rises, MSTR may not follow.
If BTC surges by a large amount, MSTR might also go up, but the upside may not keep pace.
So don’t buy MSTR in the short term. If you’re bullish on the trend, just buy BTC.
┈➤ Don’t look at the upside potential of STRC as smaller than MSTR
MicroStrategy’s strategy right now is to sacrifice MSTR to rescue STRC. The goal is to pull STRC’s price back to around $100.
Take a look at the MSTR/STRC ratio—it’s also been in a downward trend since July 1.
Don’t just assume that because MSTR has more room to rise, STRC can only rise to $100 at most.
STRC also pays a dividend once every half month.
And STRC’s current market price is $86.89, but dividends are calculated based on a $100 par value.
STRC’s nominal dividend yield is 12%, but the actual dividend yield is 12/86.89 = 13.81%.
┈➤ To wrap up
Only when STRC returns to around $100—ideally when it stabilizes—then it may be a good time to buy MSTR.
Because once STRC stabilizes around $100, MicroStrategy will most likely continue issuing more STRC and buying BTC. They might even sell BTC to repurchase MSTR.
For MicroStrategy, STRC is the short-term target, and MSTR is the long-term target—but not right now.