From Seekingalpha · Geneva Investor · · 50s
Strategy Bitcoin Machine Restart After Repeg
Strategy Inc. repegged STRC to restart Bitcoin machine after $1.84B buyback.
In brief
Strategy Inc. repegged STRC to restart Bitcoin machine after $1.84B buyback. Strategy Inc. can restart its Bitcoin machine by repegging STRC to $100 after $1.84 billion buyback. Originally reported by Seekingalpha.
Strategy's $1.84B Buyback
Strategy Inc. spent ~$1.84 billion since July buying back STRC below $100.
STRC at Par for Bitcoin Engine
STRC at par is the precondition for Strategy to restart its Digital Credit engine.
Digital Credit Engine Target
Strategy targets $7.1 billion to $14.3 billion of annual sales from Digital Credit engine.
Above Par Strategy Options
Above par, Strategy can issue STRC to buy more Bitcoin or cut the 12% rate and save ~$86 million.
MSTR Trading Premium
MSTR trades at ~1.11X mNAV, a premium I think does not reflect a Bitcoin buying channel.
The takeaway
Strategy Inc. can restart its Bitcoin machine by repegging STRC to $100 after $1.84 billion buyback.
