STRC hits $100 by…

Strategy Spends $192M on STRC Buybacks While Adding Just 250 BTC • • Strategy said it acquired 250 BTC for $21.5 million at an average price of $86,194 between October 5 and 11, bringing total holdings to 848,250 BTC at an aggregate cost of about $64.0 billion. The company also repurchased 1.93 million STRC shares for $192.4 million over the same period. The bitcoin purchase was funded mainly with $21.0 million in proceeds from MSTR share sales, while USD cash stood at $640.5 million and the USD Reserve at $4.88 billion as of October 11.

Strategy Buys 250 BTC, Spends $192M on STRC Buybacks • • Strategy said it acquired 250 BTC for $21.5 million at an average price of $86,194 between October 5 and 11, bringing total holdings to 848,250 BTC at an aggregate cost of about $64.0 billion. The company also repurchased 1.93 million STRC shares for $192.4 million over the same period. The bitcoin purchase was funded mainly with $21.0 million in proceeds from MSTR share sales, while USD cash stood at $640.5 million and the USD Reserve at $4.88 billion as of October 11.

I think unless one expects BTC to still be in a bear market and to be heading to sub $60k, it's pretty hard to see how STRC could *not* repeg • • At the same time, I have written dozen of tweets about the fact that capping STRC at $100.00 is a bad idea and they should only ATM anywhere above $100 at their own discretion. We're seeing the asymptote to $100 phenomenon happening right now and it's pretty dumb when you want your product to trade at exactly $100.00 to have an asymptote to $100...

3 months ago, with $STRC trading at $84.99, we published our thesis. • • Today, $STRC trades at $99.68. • • Digital credit is here to stay. •

Weekly reminder to Saylor that he should announce that $STRC won't be capped at $100.00 anymore • • Think about this: you could theoretically use $STRC as a hedge short for your crypto long exposure, knowing that your only downside is currently 1% (99->100) + the dividend rate (12% annually) + the borrowing cost • • Obviously you have no certainty about how low STRC will dump whenever BTC has a significant drawdown again, but overall it looks like a no-brainer short anyway. Maybe not in the short-term if you're expecting BTC to run to $90k, $100k+, but later in the cycle. • • Saylor is highly incentivizing people to short or sell STRC close to $100 by officially capping it at $100.00. It's not good for this instrument.

Strategy Skips Bitcoin Buying and Uses $139M to Repurchase STRC • • Strategy said it neither bought nor sold Bitcoin and made no ATM share sales between September 8 and 13. Instead, the company spent $139.3 million in cash to repurchase about 1.42 million shares of its STRC preferred stock. As of September 13, Strategy held 845,050 BTC acquired for $63.73 billion at an average price of $75,412 per BTC. Its USD Reserve and USD Cash stood at $5.10 billion and $1.30 billion, respectively.

$STRC up 35% since an explosion of first time commentators created an opinion on a topic they know nothing about

$STRC up 35% since an explosion of first time commentators created an opinion on a topic they know nothing about

There's a good chance that STRC will literally be unable to reach $100.00 until Saylor capitulates • • As long as the market knows that Strategy will be ATMing at $100, the incentive to short/sell at $99.9 is soooo high, and now everyone knows about it, unlike 3 months ago

There's a good chance that STRC will literally be unable to reach $100.00 until Saylor capitulates • • As long as the market knows that Strategy will be ATMing at $100, the incentive to short/sell at $99.9 is soooo high, and now everyone knows about it, unlike 3 months ago

The only thing the market has to do to force Saylor's hand is to keep STRC strictly under $100 • • And Strategy still hasn't figured out that they are providing immense incentive for shorting right below $100 by automatically ATMing STRC at $100.00

The only thing the market has to do to force Saylor's hand is to keep STRC strictly under $100 • • And Strategy still hasn't figured out that they are providing immense incentive for shorting right below $100 by automatically ATMing STRC at $100.00

MARKETS: $STRC surges 30%+ from its June low to $94 as @Strategy sells $BTC to fund dividends, repurchases $106M in preferred shares and builds its USD reserve to $4B

MARKETS: $STRC surges 30%+ from its June low to $94 as @Strategy sells $BTC to fund dividends, repurchases $106M in preferred shares and builds its USD reserve to $4B

MARKETS: $STRC surges 30%+ from its June low to $94 as @Strategy sells $BTC to fund dividends, repurchases $106M in preferred shares and builds its USD reserve to $4B

MARKETS: $STRC surges 30%+ from its June low to $94 as @Strategy sells $BTC to fund dividends, repurchases $106M in preferred shares and builds its USD reserve to $4B

Strategy’s STRC rebounds 30% as company builds cash reserve, bitcoin price stabilizes. • Bitcoin sales, what is now a $4 billion cash reserve, and a $975 million repurchase program, have supported STRC’s recovery.

Strategy’s STRC rebounds 30% as company builds cash reserve, bitcoin price stabilizes. • Bitcoin sales, what is now a $4 billion cash reserve, and a $975 million repurchase program, have supported STRC’s recovery.

@BTCBeliever21 @NickKaknes @Strategy Ofc not lol • • As long as he keeps selling STRC at $100 and not higher, there is a free short at $100, ie a good short at $99 too • • The sell pressure will become immense above $99

@BTCBeliever21 @NickKaknes @Strategy Ofc not lol • • As long as he keeps selling STRC at $100 and not higher, there is a free short at $100, ie a good short at $99 too • • The sell pressure will become immense above $99

Our corporate objective is to return $STRC to $100, and we have the means to do it.

Our corporate objective is to return $STRC to $100, and we have the means to do it.

Our corporate objective is to return $STRC to $100, and we have the means to do it.

Our corporate objective is to return $STRC to $100, and we have the means to do it.

That's more rational again • • $STRC currently trading at $93.5

They are specifically targeting a 1% range, which is physically impossible (and the price action has proven it already). • • Given STRC size, and given the fact that its dividend rate is stable on a 1-month time horizon, there's no way to prevents its volatility from being rather close to STRF volatility, ie regular 10% swings in a month. • • Planning for STRC to trade between $99 and $100 as an equilibrium state means they are completely delusional about their instrument because it will never ever have such a low volatility, even if BTC were to reach $1M in 3 years. • • Hitting the ATM at $100 is horrendous too because it highly incentivizes everyone (both holders and short-sellers) to sell at $100 or as close to $100 as possible. • • Because there's no way to escape at least a 10% volatility range, it means STRC will trade (at best) between $90 and $100, when the goal is to have it trade close to $100

They are specifically targeting a 1% range, which is physically impossible (and the price action has proven it already). • • Given STRC size, and given the fact that its dividend rate is stable on a 1-month time horizon, there's no way to prevents its volatility from being rather close to STRF volatility, ie regular 10% swings in a month. • • Planning for STRC to trade between $99 and $100 as an equilibrium state means they are completely delusional about their instrument because it will never ever have such a low volatility, even if BTC were to reach $1M in 3 years. • • Hitting the ATM at $100 is horrendous too because it highly incentivizes everyone (both holders and short-sellers) to sell at $100 or as close to $100 as possible. • • Because there's no way to escape at least a 10% volatility range, it means STRC will trade (at best) between $90 and $100, when the goal is to have it trade close to $100

Basically the r/r for holding STRC at $100 is atrocious if we know they will always hit the ATM at $100, because you get all the downside volatility and only 1% yield every month as upside. Given the type of volatility STRC has (10% swings), if you short it at $100, you're almost certain that you'll get out in profit on its next drawdown. • • Strategy claims that they target a 1% range at $99-$100, but that's physically impossible, because even if the dividend rate is variable in theory, in the short-term the div rate is fixed, meaning it will have a similar volatility profile as STRF, ie at least 10% swings. • If you cap the upside at $100, the 10% swings will be capped at $100 and you mechanically decrease the bottom of these volatile moves. I think it's much more realistic to target a $95-$105 range, because the average price of STRC would then be around $100 (which is the goal). In the current situation, by trying to be cute and "guarantee that STRC won't top $100", Strategy forces the whole thing to trade in a $90-$100 range (at best), meaning the average price of STRC is significantly below $100.

Basically the r/r for holding STRC at $100 is atrocious if we know they will always hit the ATM at $100, because you get all the downside volatility and only 1% yield every month as upside. Given the type of volatility STRC has (10% swings), if you short it at $100, you're almost certain that you'll get out in profit on its next drawdown. • • Strategy claims that they target a 1% range at $99-$100, but that's physically impossible, because even if the dividend rate is variable in theory, in the short-term the div rate is fixed, meaning it will have a similar volatility profile as STRF, ie at least 10% swings. • If you cap the upside at $100, the 10% swings will be capped at $100 and you mechanically decrease the bottom of these volatile moves. I think it's much more realistic to target a $95-$105 range, because the average price of STRC would then be around $100 (which is the goal). In the current situation, by trying to be cute and "guarantee that STRC won't top $100", Strategy forces the whole thing to trade in a $90-$100 range (at best), meaning the average price of STRC is significantly below $100.

Repurchases will be funded outside the USD Reserve, including through MSTR and BTC sales, based on market conditions. Our objective is for STRC to trade near $100 with high liquidity, low volatility, and healthy, sustainable independent demand. We will not issue below $100.