Mike Emerson retweetledi
Mike Emerson
533 posts

Mike Emerson
@emerson0123
Crypto-native since 2017. Protocol engineer crafting scalable DeFi protocols & smart contracts across 15+ chains, 25M+ pairs,BTC,SOL,XRP,BSC,POL,AVAX & more.
Web3 Katılım Eylül 2010
3 Takip Edilen186 Takipçiler
Mike Emerson retweetledi
Mike Emerson retweetledi

BREAKING: $STRC just hit at $85.32, its lowest level ever.
It could force Strategy to sell more Bitcoin.
STRC is Strategy's preferred stock that pays an 11.5% annual dividend. When it trades below its $100 par value, the market is signaling that the yield is not high enough.
To bring STRC back to its peg, Strategy would need to raise that dividend rate.
But raising the dividend rate means a higher annual cash obligation. Strategy is currently funding that cash by selling MSTR shares.
The problem is MSTR's NAV premium has compressed close to 1x, meaning there is almost no room left to dilute further.
That could force them to look at this option. SELL BITCOIN.
Strategy also responded directly to these concerns. According to their latest 8-K filed June 15, their $55 billion Bitcoin reserve covers $1.7 billion in annual dividends and interest expenses for 32 years. Bitcoin only needs to appreciate 3.1% per year for them to break even on that obligation.
On paper, the cushion looks significant. But STRC is still trading at $86, $14 below its $100 par value. The market is not convinced yet.
When Strategy sold just $2 million worth of Bitcoin last time, the price dropped 20%. If Strategy is forced into becoming a consistent seller, the impact on Bitcoin would be significant.
Strategy has been the single largest institutional Bitcoin buyer in the world. The data says they have 32 years of runway. The market is still pricing STRC at a discount.


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Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi
Mike Emerson retweetledi

@cryptorover Respect the consistency. Gotta stay consistent folks
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Mike Emerson retweetledi
Mike Emerson retweetledi
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