A supervisor at Michael Saylor’s Technique (previously MicroStrategy) posted a declare to social media that the corporate’s STRC inventory enjoys protection by its bitcoin (BTC) collateral.
In line with Chaitanya Jain, STRC depends on Technique widespread inventory for its bitcoin (BTC) “over-collateralization.”
A tweet posted by Jain at 9:02pm New York time on January 20 learn, “$MSTR wants $STRC for $BTC amplification. $STRC wants $MSTR for $BTC over-collateralization.”
Nonetheless, that is incorrect.
Certainly, there’s widespread misinformation and appreciable confusion concerning the supposed BTC backing of Technique’s numerous forms of inventory: MSTR, STRK, STRD, STRF, and STRC.
The actual fact is, BTC doesn’t collateralize any of Technique’s publicly traded equities.
‘Not collateralized by the corporate’s BTC holdings’
The corporate has repeatedly disclosed that possession of its securities “will not be collateralized by the corporate’s BTC holdings.”
“Possession of widespread inventory doesn’t characterize an possession curiosity within the BTC the corporate holds,” the corporate has acknowledged in a number of SEC filings.
However, Technique and Saylor usually tread dangerously near the road. They frequently converse of BPS (BTC per share) of widespread inventory, in addition to BTC “protection” of dividend funds.
Removed from informal asides, these phrases are key efficiency indicators and have in quarterly earnings.
In its 2025 third quarter presentation, for instance, the corporate revealed a declare that two of its most well-liked shares have “collateral protection” in addition to a “BTC ranking” on the identical slides.
This BTC ranking divides the corporate’s BTC by the sum of these preferreds’ notional values and all shorter-duration/senior devices.
Furthermore, Technique has tweeted that the corporate’s BTC holdings present 71 years of dividend “protection.”
Lastly, Saylor has broadcasted messages for months about STRC competing with financial institution accounts, cash markets, and even annuities, regardless that STRC derives nearly all of its worth from BTC.
“All people on the earth would like to have a excessive yield checking account that yielded 10%,” Saylor has repeatedly stated in reference to STRC and its so-called BTC ranking.
Learn extra: The mathematics behind MicroStrategy’s bitcoin wager
In different phrases, Technique’s management repeatedly makes use of phrases that might confuse an everyday particular person as as to if its BTC covers or collateralizes the corporate’s equities, whereas concurrently disclaiming that it does.
Youthful and fewer senior employees, corresponding to Jain, apparently nonetheless get confused.
