Bitcoin News
By Bruce Buterin
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Why the 14% Yield Is Misleading. The headline yield on STRC looks attractive — around 14% — but Oei says that number is basically a…
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The 29-Year Dividend Math. Here's where Oei's model gets interesting. He calculates that Bitcoin only needs to grow by 3.
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Conflicts, Skeptics, and Open Questions. Worth flagging: Oei is involved with Treasury, a European Bitcoin treasury firm.
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Khing Oei thinks the market is getting STRC badly wrong. The former Goldman Sachs credit investor says MicroStrategy's preferred stock is mispriced by roughly 13%, and he's put a…
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That's not a small gap. And Oei's case for it is pretty specific.
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The headline yield on STRC looks attractive — around 14% — but Oei says that number is basically a trap for investors who don't read the fine print.
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The stock dropped 25% below par during a Bitcoin selloff in June, which made the yield look even juicier on paper.
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His approach is to treat STRC more like a bond — value it on actual cash payouts, not speculative perpetual payments that may or may not materialize.
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MicroStrategy holds 843,775 Bitcoin, currently valued at $54 billion, plus $3 billion in cash. But that pool isn't all available to STRC holders.
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Here's where Oei's model gets interesting. He calculates that Bitcoin only needs to grow by 3.4% annually to sustain those dividends indefinitely.
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More context: SpaceX Stock Dips Below IPO Price Amid Investor Concerns
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Discount 29 years of payments at 12%, and you get $96.30. The market is paying $85.29, which Oei says implies only 17 years of dividend coverage.
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Some investors apparently agree. A survey by BitcoinTreasuries found that more than half of STRC holders bought the stock at its dip below par. That's not panic selling behavior.
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Bitcoin's price is probably the single biggest variable in all of this. Oei's sensitivity analysis is pretty clear: if Bitcoin hits $80,000, STRC could return to $100.
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Worth flagging: Oei is involved with Treasury, a European Bitcoin treasury firm. If STRC's mispricing gets recognized and the stock re-rates higher, he likely benefits.
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