MSTR is starting to look less like “a company holding bitcoin” and more like a leveraged bitcoin structure with equity, debt, preferreds, and volatility all stacked on top of BTC.
The interesting part is STRC. It feels like they’re trying to turn bitcoin volatility into something credit markets can actually buy, not just speculate on.
Bullish or risky depends on how you see it. If BTC keeps grinding up, this structure looks genius. If BTC chops hard or liquidity dries up, it gets a lot more complicated.
Quick breakdown here:
https://btcusa.com/mstr-becomes-amplified-bitcoin-strc-structures-volatility-as-credit/
MSTR Is Turning Bitcoin Volatility Into a Credit Trade
byu/Enough_Angle_7839 inbtc
Posted by Enough_Angle_7839
1 Comment
Starting?
Strategy pivoted from selling shares to fund Bitcoin purchases to borrowing more than a year ago. Why? Because they ran out of buyers to issue new shares to
When the price dipped, they also ran out of lenders to borrow from, so they pivoted to preference shares with a guaranteed dividend
This isn’t news
Strategy is still mostly a company holding Bitcoin (the old business intelligence software business is still operating). The only changes have been the method of funding the BTC purchases. Also, not really leveraged, because the loans are 1:1 and also because the loans can be converted to shares on expiry if Strategy isn’t able to repay