as someone who has dipped their toes into the STRC waters for a while, I was wanting to take a deeper dive, but had some holes in my understanding, both on the plus side and potential negative side. This post was a god-send, and really beautifully done -- thank you for making generally available! (And getting me off my butt to finally get a paying subscription!)
Very helpful! Two other thoughts. First, I own about 3% of portfolio in IBIT and 1.5 % in STRC which is my way of “justifying” exposure to the rocket but still getting a decent overall yield. Second, if you own both in a taxable account your estate gets a tax free step up in basis at death and you never pay any tax on the ROC dividends as well as the rocket! For those of us closer to the end ( I am 76) that means more than the to youngsters in the audience. Finally, I question if you have time. The way I read the prospectus STRC is preferred to the other preferred in the capital stack. Do you agree?
Yet another great missive James. I've held STRC since it's first month, and now own some SATA. For people who want more context on these new securities often referred to as digital credit, there are two podcasts that offer considerable insight. The first is "The Hurdle Rate," which has as the regular hosts the senior management team of Strive. The other is "True North", which also covers the world of digital credit in great detail. One of the cultural aspects of the bitcoin world is that many of the experts in it are relatively young. The guys on the two podcasts mentioned above are probably all in their 30s, all very smart, and have experience in the "Tradfi" world. I'm 65 yoa, my primary career was as a military officer, however, I got a real MBA on my own, at night, and have been immersed in the world of finance for over 40 years. I initially dismissed bitcoin outright in 2017 because I was a big believer in Buffet and, well, he dismissed it. Bitcoin is not intuitive and STRC and SATA are not either because they seem to good to be true. To survive and prosper in this world today you have to be willing to listen to folks younger than you (they might just know something), think about first principles, and have an open mind. Pride is your worst enemy. There are false narratives everywhere surrounding the bitcoin space, but all I know is about every 10 minutes a new block is mined......Besides, even Lavish is still young!
Sorry about the long comment, and a Happy Mother's Day to everyone.
Did I miss it? Did you explain it? Should I just infer that STRC sells bitcoin (when?) in order to make the dividend payments? Where else do these funds come from to pay the investors 11.5% annually?
MSTR has $66B of Bitcoin on the balance sheet as well as $2.25B in cash. He can use either depending on situation. Saylor’s goal is to grow Bitcoin per common share while paying STRC holders 11.5% annually (though this can change according to demand and prevailing rates). The point is that the coverage for dividends goes very deep for a long time, even if Bitcoin stays at this price or falls significantly.
Still a bit vague. Saylor's plan is to never sell btc, nor deplete the cash reserve. Doesn't that mean dividends are paid out of ongoing ATM issuance, with a portion used to buy more btc and a portion used to pay dividends? That seems to be the only source of cash available
Still a bit vague. Saylor's plan is to never sell btc, nor deplete the cash reserve. Doesn't that mean dividends are paid out of ongoing ATM issuance, with a portion used to buy more btc and a portion used to pay dividends? That seems to be the only source of cash available
The 'never selling' question is thoroughly and comprehensively addressed by Saylor in this interview: https://www.youtube.com/watch?v=KhtYB48ktDY. The 'seems to be the only source of cash available' point is thoroughly and comprehensively addressed in the Q1 2026 earnings presentation. Good luck.
as someone who has dipped their toes into the STRC waters for a while, I was wanting to take a deeper dive, but had some holes in my understanding, both on the plus side and potential negative side. This post was a god-send, and really beautifully done -- thank you for making generally available! (And getting me off my butt to finally get a paying subscription!)
Very helpful! Two other thoughts. First, I own about 3% of portfolio in IBIT and 1.5 % in STRC which is my way of “justifying” exposure to the rocket but still getting a decent overall yield. Second, if you own both in a taxable account your estate gets a tax free step up in basis at death and you never pay any tax on the ROC dividends as well as the rocket! For those of us closer to the end ( I am 76) that means more than the to youngsters in the audience. Finally, I question if you have time. The way I read the prospectus STRC is preferred to the other preferred in the capital stack. Do you agree?
Yet another great missive James. I've held STRC since it's first month, and now own some SATA. For people who want more context on these new securities often referred to as digital credit, there are two podcasts that offer considerable insight. The first is "The Hurdle Rate," which has as the regular hosts the senior management team of Strive. The other is "True North", which also covers the world of digital credit in great detail. One of the cultural aspects of the bitcoin world is that many of the experts in it are relatively young. The guys on the two podcasts mentioned above are probably all in their 30s, all very smart, and have experience in the "Tradfi" world. I'm 65 yoa, my primary career was as a military officer, however, I got a real MBA on my own, at night, and have been immersed in the world of finance for over 40 years. I initially dismissed bitcoin outright in 2017 because I was a big believer in Buffet and, well, he dismissed it. Bitcoin is not intuitive and STRC and SATA are not either because they seem to good to be true. To survive and prosper in this world today you have to be willing to listen to folks younger than you (they might just know something), think about first principles, and have an open mind. Pride is your worst enemy. There are false narratives everywhere surrounding the bitcoin space, but all I know is about every 10 minutes a new block is mined......Besides, even Lavish is still young!
Sorry about the long comment, and a Happy Mother's Day to everyone.
Haha. Love it Patrick. Those are two great pods, I agree. And I’m staying as young as I can mentally and physically! Keep on 👊
Did I miss it? Did you explain it? Should I just infer that STRC sells bitcoin (when?) in order to make the dividend payments? Where else do these funds come from to pay the investors 11.5% annually?
MSTR has $66B of Bitcoin on the balance sheet as well as $2.25B in cash. He can use either depending on situation. Saylor’s goal is to grow Bitcoin per common share while paying STRC holders 11.5% annually (though this can change according to demand and prevailing rates). The point is that the coverage for dividends goes very deep for a long time, even if Bitcoin stays at this price or falls significantly.
Still a bit vague. Saylor's plan is to never sell btc, nor deplete the cash reserve. Doesn't that mean dividends are paid out of ongoing ATM issuance, with a portion used to buy more btc and a portion used to pay dividends? That seems to be the only source of cash available
to keep everything in tact. No?
Still a bit vague. Saylor's plan is to never sell btc, nor deplete the cash reserve. Doesn't that mean dividends are paid out of ongoing ATM issuance, with a portion used to buy more btc and a portion used to pay dividends? That seems to be the only source of cash available
to keep everything in tact. No?
The 'never selling' question is thoroughly and comprehensively addressed by Saylor in this interview: https://www.youtube.com/watch?v=KhtYB48ktDY. The 'seems to be the only source of cash available' point is thoroughly and comprehensively addressed in the Q1 2026 earnings presentation. Good luck.
Please take the time to understand this, even if you hate bitcoin, this could help you.