A counterintuitive question: With Bitcoin hovering around $77,000, how come Saylor’s preferred stock is almost back to par?
Starting tomorrow, November 1, STRC will pay dividends daily. In Q3, it spent $2.04 billion buying back 20.98 million shares at an average price of $97.39, lifting the price from around $75 in June back to $99.99—just one cent shy of its $100 par value. Saylor says that once it breaks above par, it can become a Bitcoin-buying ATM again, and he’s touted a capacity of up to $30 billion (that’s just capacity, not money already raised).
But there’s another side: Q3 net income was $19.5 billion, propped up by $20.9 billion in unrealized gains on Bitcoin. Revenue was just $125 million, down 3%. The company holds 848,000 bitcoins at an average cost of $75,400, leaving a cushion of less than 2% at the current price.
So is this leverage being played to perfection, or are preferred shares being used to keep Bitcoin on life support?
Pick a side: A. Daily dividends mean the money-printing machine is back on; B. If Bitcoin falls further, preferred shares will be the first to crack—the more frequently they pay, the riskier it gets. Which side are you on?
$BTC $ETH $SOL #Strategy #STRC #Bitcoin
Starting tomorrow, November 1, STRC will pay dividends daily. In Q3, it spent $2.04 billion buying back 20.98 million shares at an average price of $97.39, lifting the price from around $75 in June back to $99.99—just one cent shy of its $100 par value. Saylor says that once it breaks above par, it can become a Bitcoin-buying ATM again, and he’s touted a capacity of up to $30 billion (that’s just capacity, not money already raised).
But there’s another side: Q3 net income was $19.5 billion, propped up by $20.9 billion in unrealized gains on Bitcoin. Revenue was just $125 million, down 3%. The company holds 848,000 bitcoins at an average cost of $75,400, leaving a cushion of less than 2% at the current price.
So is this leverage being played to perfection, or are preferred shares being used to keep Bitcoin on life support?
Pick a side: A. Daily dividends mean the money-printing machine is back on; B. If Bitcoin falls further, preferred shares will be the first to crack—the more frequently they pay, the riskier it gets. Which side are you on?
$BTC $ETH $SOL #Strategy #STRC #Bitcoin
