MicroStrategy's STRC: The Pivot to 'Permanent Capital'
MicroStrategy (MSTR) grew rapidly by acquiring Bitcoin using low-interest convertible bonds. Recently, however, the company has shifted its strategy to **'permanent capital'**—in the form of perpetual preferred stock (STRC)—to reduce structural risks. 🎯 Key Takeaways ✅ MSTR is issuing **STRC perpetual preferred stock** to replace convertible bonds and eliminate **maturity repayment risk**. ✅ STRC is designed to maintain a stable price near **$100** through a **variable monthly dividend**, an **ATM facility**, and **call options**. ✅ The initial dividend yield is approximately **9-10% annually** on an offering price of **$90**, with a monthly payout structure. ✅ The investment thesis: Weighing the benefit of **eliminating maturity risk** against the concerns of **dividend sustainability, dilution**, and **Bitcoin volatility**. 🔥 Topic: From ‘Free Money’ to ‘Permanent Capital’ During the era of ultra-low interest rates, MSTR's c...