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.
Nice point.
I wasn’t aware of such high dividend-paying companies in the US market, and I thought that average SPX companies paid very low dividends.
I was wrong, and you are correct: those kinds of investors look for yield, with low exposure to the underlying. Maybe Saylor thinks that STRc has a “premium” when compared to a traditional company.