STRC, SATA and the onset of digital credit

How can STRC survive at $82? (Minimum, last 88.5)

Can anyone see the similarities between STRC/MSTR and UST/LUNA?
Both were supposed to remain stable at a certain value ($100/$1).
UST was backed by confidence in LUNA.
STRC is backed by confidence in MSTR.
It’s not possible to create a stable liability supported by a volatile asset, with yield used to manufacture demand, and market confidence doing most of the work.

Columbus said:

in the software world - there’s a lot of “vendor lock-in”.

MicroStrategy is light-years behind Snowflake, Databricks, Google, Microsoft, and the rest.

Having worked with quite a few enterprise clients, I have yet to see anybody actually using their platform. But the ones I mentioned? They're running everywhere. If you put those vendors in a job search, you'll see 100x more jobs for those platforms.

A lot of this investment stuff just comes down to people hoping they can dump their shares on somebody else later. They buy with the idea that there's a bigger fool waiting at the end. If that's fine with you, okay.

A FOAF invested with this "exceptional trader" who doubled his money twice. Even after those wins, he never put more money in. He saw what was coming, pulled back, and sure enough the "gifted trader" eventually GTFO with a ton of people's money.

Make money off greedy people, not off greed.

Yeah, that’s true.

compromised said:

exceptional trader" who doubled his money twice

Sounds more like a real ponzi 😁

The big problem is that STRC=Ponzi, and the narrative goes that STRC/MSTR=btc

void said:

well... this is an ultimate stress tests

Of a “strategy” created by GPT 3, by Saylor’s own admission 🤣
This is what irresponsible use of AI leads to.

void said:

the company has tremendous reserves of BTC

Which will be forced to sell, thus driving the price lower etc.

void said:

and has obligations towards the STRC holders with huge implications for MSTR - no need to be worried about the dividend from STRC... MSTR is another story, bitcoin on steroids

It is not sustainable, unless BTC value continues to rise without retracements, which is impossible. Eventually, it must fails, it doesnt matter if btc is at $10k, $100k or $10m.

void said:

it's just catchy marketing,

No, it’s what he said with his big mouth.

void said:

they are no idiots

Saylor already proved otherwise. See the past performance of his company when it used to only sell software.
Much more brilliant minds have failed before with less idiotic strategies.

void said:

the dividend can be postponed as a last resort solution, they will hardly sell anything significant - let's see

they literally need to survive next 4-5 months

It’s not up to them to decide. The market will decide if they must die now or later. Or some judge. Or the SEC/CFTC.

Meanwhile STRC is at $80. Looks like the market decided it must die now.

void said:

what you see is the market saying that 11.5% dividend is not enough but 13.8% would do

Classic ponzi collapsing. Nothing new here.

void said:

they have other options and selling btc is just one of them... even if they sold enough to cover the STRC dividend entirely it would do nothing to the price of btc - just like it does nothing to the price when they buy (significantly more than the dividend) btc every month

Them selling btc will definitely influence btc price in the short term, which is extremely positive for almost everyone.

It's good and healthy for the market and its participants to get rid of the bad actors. See FTX.

I prefer to buy btc when it's cheap, don't you?

void said:

kill the slave masters

Amen to THAT!

STRC at $74 and only $1.4b on the balance sheet.
The first lawsuit will be the last nail in the coffin.
Saylor has mislead investors.
Btc is not a get rich scheme, and is not an income generator.

Aaaand…. It’s coming: Rosen Law Firm Launches Probe Into MicroStrategy

Inevitably, Strategy sold 3,588 btc.
So, Saylor’s genius GPT 3.0 strategy consists in hoping that btc price will continue to raise without retracing too much. Otherwise he is forced to sell btc 🤦
Obviously, once he has sold all btc it’s game over. If he’s not indicted sooner.

void said:

I don't understand what you don't like about this move.

They are liquidating the only valuable asset they hold. This shows that it’s the only method at their disposal to come up with cash when they can no longer collect new cash from the market. In other words, that their strategy is idiotic and their narrative a fraud.

void said:

They sold a negligible (for both, them and the whole market) amount of BTC

The point is not if the amount is negligible.

void said:

to calm down the shareholders and relieve the pressure

No. They did it to be able to finance an unsustainable interest rate.

void said:

- it worked immediately as expected - STRC recovered from 75 to 90 and they have a comfortable buffer. They can do it as many times as they want.

No. The market might or might not react.

void said:

BTC would need to drop to 20k to put them in jeopardy.

No. They can fail in many ways, even without btc falling so low.
The longer it takes for this company to go burst, the worse it will be (in the short term) for btc and crypto in general.

void said:

This company seems to have a rock solid position.

🤣 this is a joke, right?

void said:

Compare is to the whole AI bubble that's gonna burst sooner or later.

Am I wrong? Enlighten me.

AI is an industry. Btc is a cryptocurrency. Better than fiat, but you can’t build a revenue strategy on top of it without it being a ponzi.

This simple AI-generated report (anyone can do it at almost zero cost) clarifies the whole story:

The clown keeps selling btc, the only way left to finance his stupid scheme absent new fiat cash: