Strategy (MSTR): Bitcoin's Nuclear Option
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The MSTR Nuke is Armed & Ready
The game didn’t change overnight but the world just woke up to the financial engineering taking place within Strategy(MSTR). Did I see this coming? Not quite, but I’m not surprised either.
However activity doesn’t ensure safety. And MSTR 0.00%↑is still clawing its way back from a 70% drawdown while the market sentiment remains buried deep in the slums. Because in the end, everything still hinges on Bitcoin.
This is where fortunes are made. And Saylor’s plan might have finally come full circle…
The Preferred Playbook Prevails!
I’ve covered the preferreds to the best of my ability, but it’s not a walk in the park. These financial products resemble bonds with no maturity and the yield being significantly higher than the average you’d find.
The preferreds are essentially the bold bet Saylor is making that the Bitcoin will massively outperform whatever fixed dividend they have to pay.
The playbook is genius but risky.
Assuming Saylor buys 1,000 BTC one day at the price of $70,000 with the preferreds averaging a fixed annual dividend of 10%?
A $70 million dollar purchase for the cost of $7 million per year.
All for the potential of Bitcoin going nuclear or dying…
Mastermind or… Madman? Dad still thinks he is playing too safe.
The Significance of Stretch
($STRK, $STRC, $STRD, $STRF, $STRE) All feature unique traits whether it be volatility, yield, dividend schedule (quarterly, monthly) and with or without penalty.
Some like STRK 0.00%↑ even function like mini-call option on the common-stock MSTR($1000 strike price = 0.1 shares).
Among them all, Stretch STRC 0.00%↑is the one turning heads as people are even foregoing their average dividend growth stocks and bonds just for the guaranteed 10 to sometimes 11.50% annual yield. And who can blame them?
In a hypothetical scenario if someone invested $100,000 into STRC 0.00%↑and reinvested their dividends over 10 years (assuming a constant 10% yield), they would have $270,704 dollars.
It’s not miraculous, but it’s a guaranteed paycheck. Stretch pays a monthly dividend with penalty protection meaning that if it ever fails, you will be compensated in the future.
The risk? Bitcoin fails and MSTR can’t keep this engine going. A fate I deem to be unlikely.
Bitcoin Now Powered by MSTR?
Since even without the preferreds MSTR 0.00%↑ would be fine. Their convertible bond strategy amounted to 600,000 BTC and now the force that once drove MSTR 0.00%↑ is now powered by it instead.
Why? Because the preferreds allow Saylor to buy during the drawdowns.
And this time around MSTR 0.00%↑ isn’t the only one igniting the flame.
ETFs, hedge funds and traders all joined the accumulation race for BTC or by now their volatile counterpart, MSTR 0.00%↑ .
The fact of the matter is that as long as Bitcoin lives, MSTR 0.00%↑lives. But how can Bitcoin ever die when Saylor is willing to buy at any price?
Saylor wants 10% of the network at any price. While someone else is waiting for ‘the dip’ or a better entry point… Come dip, peak, trading sideways? Saylor is vacuuming.
This stock everyone despises so much remains the 38th most traded stock for a reason. It can’t be stopped and I don’t think it will be either. I still have people telling me about the risks but the way I see it? Not owning MSTR 0.00%↑is the risk!
My Move?
It all comes down to this and I doubled down.
MSTR 0.00%↑ is 20% of the portfolio — pure stacking on my end.
2-4x for BTC within 1 year is possible and if that happens? MSTR 0.00%↑ 5x easy.
While my conviction isn’t as strong as Saylors = $1,000,000,000,000 a coin…
If I am right? I get my »NEVER WRONG« title back? And that’s enough for me.
I predict this Crypto winter will soon be over and Bitcoin will be somewhere new, something new.
Whether through the genius act, continued mistrust in the government or maybe just the final real push of adoption kicks in and things detonate.
When you think about it? Saylor has already won, question is
WILL BITCOIN DELIVER SOON ENOUGH FOR IT TO MATTER?
🛰 Signal LOST: End of transmission — INVADER out… 🧨
Disclaimer: This post is for informational and entertainment purposes only. It reflects personal opinions and is not intended as financial advice. Always do your own research before making investment decisions