Strategy Variable Rate Perpetual Stretch (Derivatives) (STRC)

$STRC is supposed to trade at a hundred dollars. Last week it fell to seventy four. Then Strategy lifted the dividend to twelve percent and the whole framework changed.

Here is the breakdown by @BCheque1:

"And of course you have STRC, the yield product which was sold recently to raise funds to buy more Bitcoin.

Initially it was a nine percent yield, then it was increased to ten, then increased to eleven.

They just kept increasing it. Now it's had to go up to twelve. Depeg is not the right word, but it should be trading at a hundred.

That should be par. It went as low as seventy four last week, now back up to eighty two on the news that you're incentivizing a bit more on the yield side."

my primary concern isn't Strategy insolvency

it's major dilution of the common + misrepresentation of STRC to investors

so trying to warn people of the risks which are very real which were not dominating the timeline like they are now when I started sharing them a month ago

As unpopular as it might be, I believe informing people of those risks and advocating for healthy change in Strategy's structure will hopefully both help people out in the short term and benefit the industry in the long term