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
This was what The sceptical chemist was talking about some weeks ago
Despite its attractive percent, there are Real Estates based shares that have been doing it for years and with better percentage.
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.
STRC focuses more on high yield and price stability over capital appreciation hence it's relatively lower risk.
Imo it depends on dividend increase to meet up not necessarily capital appreciation
Especially since the 9% yield is an initial figure which subject to adjustments based on performance.
Maybe Saylor thinks that STRc has a “premium” when compared to a traditional company.
Its strength lies in the price stability factor that helps reduce volatility compared to common stocks