#StrategyMarketCapSurpassesRumble
🚨 WHY I CHANGED MY MIND ON DIGITAL CREDIT
I used to be skeptical of the Digital Credit model.
Then @Strategy and @saylor changed my view — not with one headline, but with a series of measurable moves.
The timeline tells the story 👇
🔹 Jan 2025: Strategy expanded beyond convertible debt with perpetual preferred capital.
🔹 Mar 2025: STRF launched with a 10% fixed-rate perpetual preferred structure.
🔹 Jul 2025: STRC raised $2.521B, making variable-rate preferred capital a major part of the model.
🔹 Dec 2025: Strategy created a $1.44B USD reserve specifically for preferred dividends and debt interest.
🔹 Feb 2026: That reserve grew to $2.25B.
🔹 May 2026: Strategy repurchased $1.5B of convertible debt for ~$1.38B, cutting outstanding debt from $8.21B → $6.71B.
🔹 Jun 2026: The reserve reached $2.55B, covering roughly 17.4 months of expected dividends and interest.
🔹 Jul–Aug 2026: The reserve climbed from $3.75B → $4.65B, while Strategy began repurchasing STRC below par.
And this is the part that really changed my thesis:
STRC buybacks are basically an ATM running in reverse.
Instead of issuing more preferred shares, Strategy can buy them below par, reduce shares outstanding and potentially lower future dividend obligations.
Meanwhile:
💰 Debt: $6.714B
💵 USD assets: $5.711B
📊 Net leverage: ~1%
₿ BTC reserve: $73.23B
📉 BTC breakeven annual return: ~2.16%
This isn't about one bullish metric.
It's about the entire capital structure becoming more disciplined.
Dedicated liquidity.
Lower debt.
Low net leverage.
Preferred buybacks.
A growing cash reserve.
That combination changed my mind.
Updating your model when the data changes isn't defeat.
It's how you improve the model.
#Strategy #MSTR #STRC #STRF #Bitcoin #BTC #DigitalCredit #Crypto #MichaelSaylor
🚨 WHY I CHANGED MY MIND ON DIGITAL CREDIT
I used to be skeptical of the Digital Credit model.
Then @Strategy and @saylor changed my view — not with one headline, but with a series of measurable moves.
The timeline tells the story 👇
🔹 Jan 2025: Strategy expanded beyond convertible debt with perpetual preferred capital.
🔹 Mar 2025: STRF launched with a 10% fixed-rate perpetual preferred structure.
🔹 Jul 2025: STRC raised $2.521B, making variable-rate preferred capital a major part of the model.
🔹 Dec 2025: Strategy created a $1.44B USD reserve specifically for preferred dividends and debt interest.
🔹 Feb 2026: That reserve grew to $2.25B.
🔹 May 2026: Strategy repurchased $1.5B of convertible debt for ~$1.38B, cutting outstanding debt from $8.21B → $6.71B.
🔹 Jun 2026: The reserve reached $2.55B, covering roughly 17.4 months of expected dividends and interest.
🔹 Jul–Aug 2026: The reserve climbed from $3.75B → $4.65B, while Strategy began repurchasing STRC below par.
And this is the part that really changed my thesis:
STRC buybacks are basically an ATM running in reverse.
Instead of issuing more preferred shares, Strategy can buy them below par, reduce shares outstanding and potentially lower future dividend obligations.
Meanwhile:
💰 Debt: $6.714B
💵 USD assets: $5.711B
📊 Net leverage: ~1%
₿ BTC reserve: $73.23B
📉 BTC breakeven annual return: ~2.16%
This isn't about one bullish metric.
It's about the entire capital structure becoming more disciplined.
Dedicated liquidity.
Lower debt.
Low net leverage.
Preferred buybacks.
A growing cash reserve.
That combination changed my mind.
Updating your model when the data changes isn't defeat.
It's how you improve the model.
#Strategy #MSTR #STRC #STRF #Bitcoin #BTC #DigitalCredit #Crypto #MichaelSaylor