Bitcoin (BTC)

The financial engineering is failing in real time.

STRC just hit a record low. It traded below $85 today, about 15% under the $100 par value it was built to hold.

At $84.76 it now has an effective yield of about 13.6%.

Here is what that means in plain terms.

STRC is the machine Strategy uses to raise cash and buy Bitcoin. Their rule is they only sell it above $100. So below par, that machine switches off. It is off right now. The channel they lean on most to buy Bitcoin is shut.

The dividend does not stop, though. They have to fund it somehow: dilute MSTR shareholders with new stock, drain the cash reserve, or sell Bitcoin.

To defend the $100 peg they can really only push the yield up, and they have pushed it again and again, all the way to 11.5%, from an original 9%. It still will not hold. And the same contract lets them cut or delay that dividend whenever they choose. So the income that is the entire pitch is the one thing they can switch off.

Now look at the mirror. SATA, Strive's copy of STRC, is

Venezuela's inflation rate reached 1,000,000% in 2018

People used the bolivar bills to make baskets and arts and crafts since the paper/cloth the bill is printed on actually was worth more than the bolivar fiat itself.

If you boight Btc in Venezuela, you're all set, for life. https://t.co/SnZSXMnvnQ