As reported by Jinse, BitMEX Research has analyzed Stretch (STRC), a novel debt instrument issued by MicroStrategy (MSTR), designed to maintain price stability by adjusting dividend rates monthly based on bond market prices. The report highlights that while STRC is marketed as a low-risk investment comparable to short-term U.S. Treasuries, its structure allows MSTR to reduce dividend rates by up to 25 basis points per month, potentially leading to a zero dividend rate within three years and four months. The analysis raises concerns about the sustainability of the dividend payments and whether MSTR might be forced to sell Bitcoin if new capital inflows dry up. The report also notes that STRC is not a Ponzi scheme in the strict sense but shares similarities in its reliance on continuous funding to maintain returns.
BitMEX Analyzes MSTR's New Debt Tool STRC and Its Potential Impact on BTC Holdings
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