>Saylor has repeatedly compared STRC to a high-yield bank account or money market fund, even though it has no deposit insurance, doesn’t have any guarantees to maintain principal value, doesn’t pay any guaranteed interest rate, has no standing bids in the market to support secondary trading at par, and has fluctuated in value by 9.8% over the last four months.

The fact they have 700k+ bitcoin is the insurance. Even at $8k Bitcoin STRC holders can be made whole.

Also this article isn’t saying anything new that Saylor hasn’t said at his Keynote about digital credit. Of course he needs Bitcoin to grow for this product to any sense in the long term.

BlokchainB

When the net present value of Stretch (STRC), the dividend-yielding preferred share issued by Strategy (formerly MicroStrategy), is calculated, it makes disappointing reading for MSTR shareholders.

Michael Saylor hopes that STRC will somehow fund trillions of dollars worth of bitcoin (BTC) purchases for shareholders of his common stock. However, while STRC raises capital that will mathematically create a positive BTC yield for MSTR, it’s actually extraordinarily expensive over the long term.

Strategy advertises these immediate BTC purchases as the up-front benefit of STRC to its MSTR common stockholders.

It happily praises BTC Yield, the extra quantity of BTC that MSTR shareholders enjoy today when Strategy buys BTC from the cash it receives selling STRC.

STRC obviously improves the company’s current balance sheet because it raises capital today and throws all of its servicing costs into the future. Like any other capital-raising activity, Strategy promises future benefits in exchange for capital today.

Stacker_Stocks

> When the net present value of Stretch (STRC), the dividend-yielding preferred share issued by Strategy (formerly MicroStrategy), is calculated, it makes disappointing reading for MSTR shareholders.
>
> Michael Saylor hopes that STRC will somehow fund trillions of dollars worth of bitcoin (BTC) purchases for shareholders of his common stock. However, while STRC raises capital that will mathematically create a positive BTC yield for MSTR, it’s actually extraordinarily expensive over the long term.
>
> Strategy advertises these immediate BTC purchases as the up-front benefit of STRC to its MSTR common stockholders.
>
> It happily praises BTC Yield, the extra quantity of BTC that MSTR shareholders enjoy today when Strategy buys BTC from the cash it receives selling STRC.
>
> STRC obviously improves the company’s current balance sheet because it raises capital today and throws all of its servicing costs into the future. Like any other capital-raising activity, Strategy promises future benefits in exchange for capital today.
>
> ![](https://m.stacker.news/135179)
>
> [**...read more at protos.com**](https://protos.com/we-calculated-the-present-value-of-strc-its-bad-for-mstr/)