Yesterday, STRC dropped to $90, breaking below the face value trigger point of $95, and the market was pricing in panic that Saylor's flying wheel was about to break. Many people interpret Strategy selling 32 BTC as Saylor breaking his promise. I looked into his previous interviews and gained a new perspective ⬇️

Part 1｜Saylor's thoughts on selling coins: the flying wheel rotation logic
In the past, @Strategy mainly relied on selling $MSTR common stock to pay $STRC dividends, but MSTR has always traded at a premium to BTC. Essentially, it’s selling BTC derivatives to exchange for cash.
There are two market concerns: one worries that Strategy cannot pay STRC dividends and uses MSTR issuance to exchange for cash to pay old dividends; the other worries that Strategy relies on selling BTC, and once it starts selling BTC to pay dividends, it can’t stop. BTC holdings are slowly depleted, ultimately falling into a self-liquidating death spiral.
There are two market concerns: one worries that Strategy is just using new money from MSTR issuance to pay old STRC dividends, making the entire structure a Ponzi scheme that will default if it can’t sustain; the other worries that once Strategy starts selling BTC to pay dividends, it can’t stop, and BTC holdings are gradually consumed, falling into a self-liquidating death spiral.
Strategy is doing the same thing with Bitcoin; the only difference is the underlying asset. He says the company doesn’t need to sell MSTR common stock anymore; it can directly sell significantly appreciated BTC to pay dividends.
Saylor explained the STRC flying wheel math in an interview:
1. Issue STRC (borrow money, annual interest 11.5%) → receive cash
2. Use cash to buy BTC
3. BTC appreciates naturally each year (Saylor assumes 30%, actual past 40%)
4. Sell a “small part” of the BTC’s annual appreciation → use it to pay STRC interest
5. The remaining appreciation + the originally purchased BTC are profits for the company
STRC is a preferred stock with an 11.5% monthly yield, and in April, the company sold $3.2 billion worth of STRC and bought back an equivalent $3.2 billion of BTC. That month, STRC dividends were only $80-818k, while BTC accumulation far outpaced dividend consumption.
For him, the breakeven formula is 2.3%. As long as BTC appreciates by 2.3% annually, the company can pay all dividends, continue accumulating holdings, and no longer need to issue MSTR common stock. Based on this year’s issuance pace, STRC’s issuance rate will reach 15% to 20% of BTC holdings.
For him, it’s buying 20 BTC and selling 2 BTC, ending with a net increase of 18 BTC. The company is always a net buyer of BTC in the long run.
Saylor also revised his signature phrase, which was criticized online as “never sell your Bitcoin,” actually meaning “never be a net seller of Bitcoin.”
So how should retail investors face the belief of “never sell”? He says retail investors should become net accumulators of BTC. Even if they spend BTC to buy things, they should replenish it within the same period because Bitcoin is capital. At year-end, the BTC on the books should be more than at the beginning of the year.
Going deeper, in the Wolf of All Streets interview, when asked how much unencumbered BTC the company has, Saylor answered 818k coins, all unpledged. The BTC market has liquidity of $20 billion to $100 billion, unrelated to Strategy’s equity credit. If the company publicly declares it will never use this liquidity, credit rating agencies will directly infer that it’s not an asset—effectively destroying the core asset that supports 98% of the company’s value.
💡 32 BTC thus send a clear signal to the market and credit agencies that Strategy can act if necessary.
Part 2｜The truth behind STRC breaking below, what Saylor is thinking
What happens after STRC drops below $90? The answer lies in a complete closed loop after Saylor sells BTC.
Selling BTC for cash reserves, accumulating dividend war funds → selling pressure causes MSTR and BTC to decline short-term → STRC sees increased certainty of interest payments, buying returns, and price recovers to face value → Saylor reinitiates market price issuance of STRC → funds raised continue to buy BTC.
Why does STRC return to face value?
1. Contractually fixed mechanism: when STRC drops below $95, the company is forced to increase next month’s dividend rate ≥ 50bp. The new interest rate immediately attracts fixed-income investors, bringing buying back. Saylor said in the Bonnie interview that before the record date, billions of dollars will flood in to buy STRC.
2. Company buyback: Saylor also said in the Bonnie interview, “We will exchange STRC for MSTR, or BTC for MSTR. We will do what’s best for the company. If STRC is trading at a large discount and we have cash, we will buy it back. Short positions will have something to lose, and we will profit from their irrationality.”
In the long run, @saylor’s ultimate goal in doing all this is still to buy more BTC. All actions are aimed at ensuring Strategy remains a net buyer of BTC forever.