I woke up to an email from my dad.
He checked his brokerage account this morning and noticed that he had 0.96% more $STRC shares today than he did yesterday.
After buying some groceries, I called him to chat. He said:
"I've never been paid this kind of money just for someone else to hold my money. I mean, someone is always holding it — the bank, the man in the moon, the cow next door, whatever — but you know what I mean. And sure, banks will pay you 1 or 2% — I've experienced that. But nothing like 11 or 12%!"
My dad comes from a long line of farmers. So when I first explained STRC to him, I compared it to farming.
"You can grow crops on your land and sell the crops. As long as you keep the land, you can keep growing the same amount of crops. If you take some of the proceeds from your crops and buy extra land from the ranch next door, you can grow even more crops next season."
Yesterday, as we talked more about STRC, I added to the metaphor:
"Whatever the market price of farmland in your county happens to be that day, week, or month, your land still grows the same number of crops. And if farmland prices happen to be down, reinvesting your crop proceeds lets you accumulate farmland even faster — land that will support just as many crops per acre as the land you already own."
That's the part of income investing that people sometimes miss.
If an income stream remains intact, a lower market price can actually accelerate your accumulation when you reinvest your dividends. Lower prices allow you to buy more productive units with the same cash flow.
And for now, that's what my dad is choosing to do by reinvesting his dividend payments into new STRC shares.
I love that #Bitcoin is working for him in exactly the way that fits his needs, all thanks to the innovation of digital credit.
Does he understand Bitcoin? Sort of, but not really.
But he doesn't want to have to understand Bitcoin any more than he already does in order to benefit from it.
As Saylor has said before: people use electricity without understanding how power plants work and drive cars without understanding internal combustion engines. They even board planes without understanding the science and engineering that allows planes to fly. Why would their money be any different?
@Strategy: Thank you for giving me the tools to help my dad achieve his financial goals.
Digital credit may have a market price, but it's helping real people live more comfortable lives by giving them back their time — which is priceless.
Good morning.
If you are selling Bitcoin this morning because Strategy sold .004% (1/26,367th) of their holdings, then you do not understand tax harvesting and/or simple corporate finance.
Have a great day.
We are going to be rage baited all day by people who did not listen to the $MSTR earnings call.
I will say it once.
Saylor said they will inoculate the market. This is a deliberate signal to prove to the S&P 500 committee and credit agencies that Strategy would sell Bitcoin if necessary.
It strengthens their case for index inclusion and improves their credit rating prospects.
Nothing has changed.
People are overthinking the 32 BTC sale.
“Why sell?”
“Why not just buy less next week?”
“Is this bearish?”
Michael @saylor already explained the logic:
• If Bitcoin can’t be sold, critics say it has no value.
• If it has no value, the balance sheet value is zero.
• If the balance sheet value is zero, credit rating agencies ignore it.
• So you sell a tiny appreciated portion to prove Bitcoin is liquid, valuable, and real.
🚨 JUST IN: SENATOR CYNTHIA LUMMIS ON THE CLARITY ACT
"The Clarity Act is not just a crypto bill. It's a decision about whether America leads the next financial system or watches from the sidelines. "
The stakes don't get higher than this. 🔥
This is not exactly the decoupling crypto investors were hoping for.
Stocks are pushing higher, gold is near highs, and crypto is still struggling to keep up.
The thing that keeps me comfortable is that I'm no longer chasing narratives.
I'm focused on a handful of projects with real utility and, despite the market, they're holding up reasonably well and I actually made money this year.
I've seen enough cycles to know that sentiment eventually shifts.
Until then, patience.