Satoshi Nakomoto

Radical Metal host. BTC HODLER with Swan. Marine. Guitar player, songwriter and singer. Mastodon lover.

[Satoshi Nakomoto @mastojesse]

@scottmelker I quit too but feel the same way. I had so much fun and then it stopped being fun, so I quit. Other things became more fun at some point and were not conducive with alcohol and that’s all it was. No rock bottom, just other things became more important.

[Samson Mow @Excellion]

$STRC has a self-repairing mechanism that most people don’t really understand. 🛠️

Below par, Strategy stops issuing new shares via ATM. No new capital is raised at a discount, and no new perpetual dividend obligations are added to the balance sheet. This is the case at both $99.99 or $90.

The self-repairing mechanism then activates automatically - the farther below par, the more powerful it becomes.

Here’s how it works 👇

1⃣ Effective yield increases (higher % return on the same cash dividend). The 11.5% dividend is not paid on the market price of STRC. The dividend is paid on the par value of $100. Think of each unit of STRC as $100 but you can buy it for less sometimes, depending on market conditions. If you buy one share of STRC for $90, the effective yield is 12.78%.

2⃣ Pull-to-par capital gain incentives activate. Strong buy pressure emerges from investors who want the combination of elevated effective yield + capital gains as price moves back toward $100. The higher effective yield feeds the pull-to-par dynamic, which is further supported by the Bitcoin balance sheet continuing to strengthen. Buyers at a discount capture the recovery to par as capital gains.

The system self-corrects without anyone having to “defend” a peg (and again for the people in the back, there is no peg because it's not a stablecoin). STRC and similar instruments (such as SATA) rely on free-market incentives and long-term Bitcoin growth to restore equilibrium.

If liquidation events (like we saw last week) push STRC below par, it simply trades below par. STRC below par does not negatively affect the dividends; it only affects short-term capital that wants to exit immediately. If STRC required active defense, that would actually be a weakness. Structures that cannot bend under stress will break.

Now let's run some numbers to get an idea of the actual incentives for the market. As STRC is a perpetual, we'll go with a one-year time frame for recovery to par. And let's use the $90 IPO price.

Effective yield (what you actually earn in dividends relative to your $90 cost): 11.50/90 = 12.78%

Pull-to-par capital gain: (100-90)/90 = 11.11%

Total return on your $90 investment: (11.5 + 10)/90 = 23.89%

*Note this is a simple sum approximation. As dividends are paid semi-monthly throughout the year, the actual realized return is slightly higher if you factor in the timing of cash flows.

So this ~24% one-year total return profile (yield + cap gains) is exactly what makes buying below par attractive for total-return investors. It turns a temporary discount into a high single-year payoff (or shorter) while the self-repairing mechanism does its work.

To reiterate what I said previously, there's nothing for @saylor and @Strategy to do here. No need to raise the coupon, no need to increase the cash buffer, or anything else. They could do those things of course, but it’s not a necessity.

STRC is working perfectly as designed.

[Satoshi Nakomoto @mastojesse]

@LynAldenContact Yay Lyn!

[Mike Nicoll @MikeNicollMedia]

Humbled and grateful, WOW! Thank you @KenBurns ! You’re a huge inspiration! THE SPOILS is streaming worldwide: https://t.co/6B15oSn1pI

[Satoshi Nakomoto @mastojesse]

@natbrunell @JeffBooth Was that on Pizza Day?

[Satoshi Nakomoto @mastojesse]

Had such a fun time talking to @CorySwan about #bitcoinseason (a superb film), and getting his unfiltered and honest takes on a number of people and issues in the space. Thank you again Cory! Watch Here: https://t.co/xIjqd9kose

[Love Music @khnh80044]

When an 8-year-old girl and her nurse mom came across a motorcycle accident, her mom immediately stopped to help the injured riders.
A year later, the girl started a lemonade stand; this is the motorcyclists' way of saying thank you…❤️🥹

[Satoshi Nakomoto @mastojesse]

@scottmelker Peace Fire (again).

[Satoshi Nakomoto @mastojesse]

@SimplyBitcoin Yes

[Satoshi Nakomoto @mastojesse]

@LynAldenContact @thetrocro @Loriss65 That’s a good one! I will too!

[Satoshi Nakomoto @mastojesse]

@CorySwan @EricWon @MikeNicollMedia @1MarkMoss Woahhhhhhhh. Can’t wait! When ya’ll gonna come of Radical Metal and talk about it. I have 15K subs now :)

[Satoshi Nakomoto @mastojesse]

@saylor @samcallah You’re welcome! Onward and upward!

[Satoshi Nakomoto @mastojesse]

@SimplyBitcoin 40K in Feb 2022

[Satoshi Nakomoto @mastojesse]

@TheBTCTherapist No but didn’t

[Satoshi Nakomoto @mastojesse]

@scottmelker My only dry powder is in an IRA so bought MSTR last three days as it drops lol

[Michael Saylor @saylor]

https://t.co/yeG4PgpjEq

[Satoshi Nakomoto @mastojesse]

@BitcoinRachy I bought 32 BTC from @saylor :).

[Satoshi Nakomoto @mastojesse]

@mechanakamoto Yes

[Satoshi Nakomoto @mastojesse]

@BritishHodl Even MSTY? I thought MSTY was saying, “it’s over”? Serious question. I continue to buy MSTR AND BTC and STRC for that matter. But I sold my MSTY.

[Satoshi Nakomoto @mastojesse]

@sircryptotips I bought more yesterday and just bought more today. My thesis for Bitcoin has not changed so by extension, neither for MSTR. I am a patient hodler for both, with a 5-10 year horizon.