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STRC just hit $100 for the first time since 5 month!
And a big reason for this is STRC Buybacks from Strategy. They bought back over $2B of STRC.
Why is this good? or just dilution? Is there real demand?
I personally think, Buybacks are by far the most underrated feature of STRC, and it’s freaking genius.
Here is why:
1.) Increases Credit Ratings
-> Every STRC share costs $12 a year. If you buy it back, you decrease your liabilities and increase the USD duration and BTC Rating.
-> The deeper the discount of the buyback, the better the value they get.
2.) Increasing Investors Trust
-> Without the buybacks, investors have no safety net.
-> So to make sure big money can come into STRC to push it from a $10B asset to a $100B asset and eventually to a $1T asset you need to ensure the company is doing everything they can to bring it back to par.
-> If you’re not willing to defend your equity, you have lost not only the battle but also the war.
3.) Getting the BTC machine back up and running:
Below $100 Strategy won't issue STRC. So they can’t buy BTC with it.
Back at par, $17.5B of capacity opens again. They already bought 170k+ BTC just this year with this. Imagine how much they will be able to buy in a Bull Market?
Serious Question: Wouldn’t you invest a few Billions to make a few Trillions?
And a big reason for this is STRC Buybacks from Strategy. They bought back over $2B of STRC.
Why is this good? or just dilution? Is there real demand?
I personally think, Buybacks are by far the most underrated feature of STRC, and it’s freaking genius.
Here is why:
1.) Increases Credit Ratings
-> Every STRC share costs $12 a year. If you buy it back, you decrease your liabilities and increase the USD duration and BTC Rating.
-> The deeper the discount of the buyback, the better the value they get.
2.) Increasing Investors Trust
-> Without the buybacks, investors have no safety net.
-> So to make sure big money can come into STRC to push it from a $10B asset to a $100B asset and eventually to a $1T asset you need to ensure the company is doing everything they can to bring it back to par.
-> If you’re not willing to defend your equity, you have lost not only the battle but also the war.
3.) Getting the BTC machine back up and running:
Below $100 Strategy won't issue STRC. So they can’t buy BTC with it.
Back at par, $17.5B of capacity opens again. They already bought 170k+ BTC just this year with this. Imagine how much they will be able to buy in a Bull Market?
Serious Question: Wouldn’t you invest a few Billions to make a few Trillions?
