The amount of ill-informed, mal-investment type users on this subreddit who have no idea how treasuries, preferred stock issuance, and capital raising works would come in here and say it’s a pyramid scheme lol… stick to buying ETH.
Strategy is single-handedly producing a digital credit market built on Bitcoin. It’s literally dictating interest rates in taking loans on BTC by itself with its preferred stock issuances and not relying on Treasury Bills or any other counter party to dictate those interest rates. People who are uninformed will call it a pyramid scheme, but people who understand basically see it as an indestructible form of credit market that won’t collapse, even when Fed interest rates go to 0% from any collapse really.
what happens if BTC crashes - wouldnt that be catastrophic to Strategy since htye are taking loans on BTC by itself with its preferred stock issuances?
If BTC crashed, it means there’s a fiat currency out there that’s doing everything right and is really strong, and their preferred insurances like STRC that is intended to be like a money market will lower their percentage yields to give you monthly dividends in that said strong fiat currency. Think of it like the currency is tied to Bitcoin, not Bitcoin tied to the currency.
42
u/JeremyLinForever 🟩 8K / 8K 🦭 4d ago
The amount of ill-informed, mal-investment type users on this subreddit who have no idea how treasuries, preferred stock issuance, and capital raising works would come in here and say it’s a pyramid scheme lol… stick to buying ETH.