Saylor posted a 30-day volatility comparison chart, hoping to prove that Bitcoin is “mild”: as of the close on October 2, $BTC 39%, matching $NVDAB . But on the same chart, his company’s common stock, $MSTRB , was at 94%—the highest of all—while its preferred stock, STRC, was just 9%.
My take: On the surface, this chart praises Bitcoin; in reality, it’s an ad for STRC—a preferred stock with a 12% annualized dividend, anchored to a $100 par value. But it fell to 75 at the end of June, and it took buybacks and roughly $5 billion in reserves to bring it back to par. The real question isn’t whether Bitcoin is stable, but how long Strategy is willing to keep supporting STRC’s stability. When calm depends on the issuer’s willingness to spend money defending the price, do you read $MSTRB ’s 94% volatility as leverage, or as the market’s pricing of this “sell preferred stock to buy crypto” model?
$BTC $NVDAB $MSTRB
My take: On the surface, this chart praises Bitcoin; in reality, it’s an ad for STRC—a preferred stock with a 12% annualized dividend, anchored to a $100 par value. But it fell to 75 at the end of June, and it took buybacks and roughly $5 billion in reserves to bring it back to par. The real question isn’t whether Bitcoin is stable, but how long Strategy is willing to keep supporting STRC’s stability. When calm depends on the issuer’s willingness to spend money defending the price, do you read $MSTRB ’s 94% volatility as leverage, or as the market’s pricing of this “sell preferred stock to buy crypto” model?
$BTC $NVDAB $MSTRB