Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
In a couple of weeks we will have the first dividend payment.
Given the current price, we could expect a slight rise in yield.
I think this is by far the best investment in the MSTR offering for the risk adverse.
Also wondering how much the success of this class of shares has to do with the apparen lag in the MSTR share price.
Given the current price, we could expect a slight rise in yield.
I think this is by far the best investment in the MSTR offering for the risk adverse.
Also wondering how much the success of this class of shares has to do with the apparen lag in the MSTR share price.
Let's look at one type of stock that STRC competes with: the REIT Realty Income.
In principle, STRC will yield 9% on a base price of $100. If this were to continue, it would lose out to a stock such as Realty Income, which has yielded a compound 13.5% for decades. In order to convince typical investors in that stock to switch to STRC, it must be able to beat the DGI in some way, which means that as the price of bitcoin rises, the base price and/or dividend must also rise. It remains to be seen how this will play out, as trying to keep the stock price around $100 could lead to an increase in the monthly dividend, but it could also lead to a decrease.