STRC (STRC)

According to Bloomberg, some funds that buy "distressed debt": 1. They would have purchased $STRC in quantity 2. They would like to offer a swap to Saylor for common shares or other preferred shares To Saylor, they say, it would be beneficial as he could withdraw $STRC from the market on which he pays 12% annual interest. For them because they would remove from their pockets a scorching title.

What's going on with $STRC now? It's just slowly drifting down!! I think we are effectively in the disillusionment phase. Over $10B purchased STRC around par, most all of it retail. Most of these folks didn't read the fine print or didn't even look at the historical charts, they just aped. There was a lot of fast money piling in here that now wants out, fast. This is similar to what top blasters do every cycle on every asset. So, as STRC climbs towards par, some of these folks will get impatient and sell before it reaches par, as we have seen. Structurally, nothing is wrong with STRC. There's more cash than there was a few weeks ago on the balance sheet, BTC is up, and Strategy has shown they are committed to STRC, that they can sell BTC without tanking the price, etc. Furthermore, the Digital Credit narrative is still alive and in inning #1. Just look at $SATA, trading close to par. STRC has a much stronger balance sheet, more liquidity, and a stronger marketing engine than Strive. The only problem is the investors that are setting the marginal price. And all of these investors that want out are setting the marginal price. So, just like with any fundamentally sound asset that goes through a drawdown, some time will be needed for the weak hands to exit and for the strong hands to accumulate. This process doesn't happen overnight, but the great thing about STRC is that you do get paid to wait. I don't know how long it will take for the supply overhang to be consumed by new buyers, but I am very confident that it will happen and STRC will return to par, with a much stronger, more resilient investor base. Digital Credit is still the only source of double digit yield that is fully liquid and transparent. It stacks up incredibly well against Private Credit. As Bezos famously said, "The stock is not the company and the company is not the stock." Sometimes, you just gotta wait.

$STRC should drift higher closer to par if BTC remains stable or up

That's how it is.

May 14 was the last time STRC traded at par. The market is clearly communicating.

🚨 Strategy is now paying a 12% dividend on roughly $10.5B of $STRC, equivalent to about $105M every month. Even if part of that is funded through periodic $BTC sales, the amount is relatively insignificant compared to Bitcoin's overall liquidity. The more important question isn't the selling. It's demand. For years, Strategy was one of the market's most consistent and aggressive Bitcoin buyers. If capital is increasingly allocated toward supporting STRC dividends instead of expanding BTC holdings, that could mark a meaningful shift in one of Bitcoin's strongest structural demand sources. That's the narrative worth watching. 👀

$MSTR | $STRC: Ignore the noise