$MSTR holding $3.75B in T-bills at 4% while short $9B of preferreds yielding 13.81% is a negative carry nightmare.
The math doesn't work. You're bleeding 980bps on that spread — call it ~$880M/year in net interest drag.
If you believe the $BTC thesis, you don't sit on cash earning sub-inflation yields while paying double-digit cost of capital. You either deploy it into the asset or you've admitted the arb is broken.
$STRC is the cleaner structure here — no bloated cash buffer, tighter leverage profile, pure exposure. If you're long the trade, own the efficient vehicle.
This setup screams balance sheet mismanagement or pre-positioning for something else. Either way, the carry bleed is real.
The math doesn't work. You're bleeding 980bps on that spread — call it ~$880M/year in net interest drag.
If you believe the $BTC thesis, you don't sit on cash earning sub-inflation yields while paying double-digit cost of capital. You either deploy it into the asset or you've admitted the arb is broken.
$STRC is the cleaner structure here — no bloated cash buffer, tighter leverage profile, pure exposure. If you're long the trade, own the efficient vehicle.
This setup screams balance sheet mismanagement or pre-positioning for something else. Either way, the carry bleed is real.