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You won't believe this, guys... but Saylor is at it again!

Dude just won't stop

...and we're here for it (#1043512, #1040720). Watching his every move, laughing/feign astonishment at the whole thing.
I've been around financeland for a decade or so, but Imma be real with y'alls... I have no idea what this means:
Strategy announced today a proposed initial public offering of 5,000,000 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock—referred to as STRC Stock—registered under the Securities Act of 1933.
A... perpetual stretch pref ...?
I understand nothing.
The company positioned the offering as part of its broader capital strategy to expand Bitcoin holdings while maintaining flexibility for dividend adjustments.
The STRC Stock will feature cumulative monthly dividends starting at an annual rate of 9.00%. Strategy reserves the right to adjust this rate within defined limits, based on one-month term SOFR fluctuations. The company intends to manage the dividend rate in a way that “causes the STRC Stock to trade at prices at or close to its stated amount of $100 per share.” Dividends will be paid in cash, and unpaid dividends will accrue compounded interest monthly.
At least somebody on Bitcoin Twitter pretends to:
Apparently it "gives capital a way to Exit fiat without entering equity, Monetize Bitcoin’s monetary premium without volatility, And park funds in a senior, dynamic, institutional-grade instrument backed by the scarcest asset in existence."
Sure, man. Sure.
Guess I'll go watch Jeff Walton's show this week to figure out what the latest Saylor financial engineering thing is.
33 sats \ 0 replies \ @gbks 4h
Here's what Claude and ChatGPT think is the most likely scenario:
"Strategy survives the next 5 years but as a shadow of its former self, with existing shareholders suffering 80-95% dilution. The company becomes a cautionary tale about the limits of financial engineering, regardless of whether Bitcoin reaches high prices. The complex web of preferred stocks and convertible debt creates a doom loop where each financing makes the next one more expensive and dilutive. The preferred stock offerings (STRC, STRK, STRF, STRD) are essentially desperate attempts to buy time, but each new debt issue continues to worsen the situation, diluting the equity they've been issuing against"
Odds:
  • 25% success - bitcoin reaches $500K+ by 2030, and the math works out
  • 50% managed decline
  • 25% financial collapse
Whether this is a good analysis, time will tell (I certainly can't).
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Is my Spidey-Sense just going nuts? It feels like he must be introducing brand new points of failure with each of these inventions.
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Possible but for this to fail I see three major risk factors
  1. Bitcoin has a brutal bear market. 4 year cycles are dead and the price goes down like 80% and stays there
  2. Coinbase hack they lose all their coins and will be sued by shareholders to make them whole probably via bankruptcy court
  3. The US government regulates this
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131 sats \ 0 replies \ @HardMoney 16h
Yea Coinbase btc being hacked or quantum (technical black swan) breaking bitcoin are really the main risks imo.
If it continues to exist MSTR will continue to have demand for their stock which means they can pay the preferred share yield. Eventually I think they become a BTC bank
All these products are more or less the same mechanism. Get a lot of money now to buy BTC in the moment at the expense of paying fiat interest perpetually into the future.
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I know you've looked at all of these investment vehicles way more closely than I have. My concern is that with increasing complexity comes unrealized vulnerabilities.
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ugh, oka apparently @k00b already had a post on this (#1048972).
Def didn't see. SOORRY!
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Bro will issue prefered equity on the broom sticks if he could lol!
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Ah, because he's a witch yes??
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Lol because he is the janitor of bitcoin mans just sweeping up sats
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Sats sweeper is a wonderful title. I'll grab it
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The more offerings Saylor makes, the less I understand. Perhaps I should just focus more on Bitcoin and be happy...
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0 sats \ 3 replies \ @Wumbo 6h
Here is Strategy video describing STRC:
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12 sats \ 1 reply \ @Wumbo 6h
Strategy literally put a pyramid diagram in their presentation. I would of thought the public relation department would of advised against this as a possible bad optic.
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Haha nai, it's all a joke
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Excellent, thaaaank you
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stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.