Coin World News: Khing Oei, a former Goldman Sachs credit investor, said the market has mispriced MicroStrategy’s STRC preferred shares, with the market believing they are worth about $96, while the current trading price is close to $85. In his analysis, Oei noted that the 12% dividend on STRC at the current discounted price implies a yield of more than 14%. He argued that this calculation assumes STRC will pay dividends forever, but STRC does not promise to do so. Oei’s model shows that STRC’s value is closely linked to the price of Bitcoin; if the price of Bitcoin reaches $80,000, STRC’s value would recover to $100.

STRC0.94%
BTC1.76%
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HalfPosition
· 10h ago
Dividends aren’t promised to be paid forever, and the risk isn’t small—if Bitcoin drops, the value of preferred shares is bound to collapse too.
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ChannelConductor
· 19h ago
This analysis seems reliable, and the dividend yield of 14% is indeed appealing.
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ScriptBoy
· 07-19 21:54
Preferred stock pricing is indeed complicated, and ordinary people can’t understand it.
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LightningCut
· 07-19 21:53
Companies like MicroStrategy that take leverage to buy Bitcoin have a preferred equity structure that is essentially a bet on Bitcoin’s rise. If BTC really reaches 80k, there’s a chance—but what if it falls to 40k? It’s also possible that dividends won’t be paid. Investors need to work out the probabilities.
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KLineSculptor
· 07-19 21:52
80k BTC? First, ask whether the Federal Reserve agrees.
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OnchainSmartbro
· 07-19 21:52
Oei makes a valid point, but markets often focus more on liquidity risk. With a structured product like STRC, if Bitcoin volatility increases, preferred shares could be even more fragile than common shares. A 12% dividend looks high, but whether it can be consistently earned is actually the real question.
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