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Andy Constan @dampedspring on x 172.3K followers
Created: 2025-07-25 12:23:22 UTC
$MSTR Strategy Announces Pricing of STRC Perpetual Preferred Stock
Some things to notice. Stated value is $XXX per share Initial dividend is X% of stated value or $X Offering price was $XX leading to an initial dividend yield of 10%.
What is fascinating is the discretionary commitment to maintain a price of the stated value of $XXX per share by managing the dividend.
If you believe this the $XX offering price should rapidly rise to $XXX or the dividend will need to be increased to $XX dollars immediately or some of each.
That begs the question of WHY would MSTR offer a security at $XX and immediately make it trade at $XXX. That's a pretty big self own! It means this offering is "giving away" $240MN to these new security holders at the expense of other security classes.
That said it is also strong incentive to buy this POS. Of course the next time they try this (which they will) people will want at least as big a discount and will swap out of this issue to get the new one making it more Difficult for MSTR to maintain its "stated value" of $XXX
Tbh I don't hate the thing as Much as I did yesterday given the massive implied discount but would scale out ever bit I had at XX up to stated value
XXXXXX engagements
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