Coffeezilla thinks that $STRC is going to fail because it's 11.5% yield is "Too good to be true" comparing it to the Terra Luna moment and described it as a "Ponzi Scheme". There's absolutely no substance to his claims because he doesn't understand it. He sees the headline interest... return and then compares it to every other high yield return product but spectacularly misses the fact that this product is nothing like them. Saylor recently did an interview with Bankless and mentioned there were '3 types of people in the world - Optimists, Pessimists & Alarmists". Coffeezilla in this instance is an alarmist. He says that Strategy are 'not obligated to pay you the yield'. Correct....but it's clearly not in their interest to not pay the divided, so why would they not? As Saylor correctly says: "You need to have a stochastic view of the world. We could list 100 things that could go wrong, but the real threat is you get hit by a truck because you're not looking both ways while you cross the street." $STRC is the real deal. Anyone who has watched it closely over the past 8+ months will tell you that.show more

Yes, his ignorance was embarrassing.

This is a tiny version of Buffett calling BTC rat poison squared. He never bothered himself to understand it so therefore it must suck. The huge difference is Buffett told millions of boomers to stay away from what will prove to be the biggest asset miss in boomer portfolio history. Coffeezilla is a twerp by comparison but gives fuel to those looking for validation of their natural pessimistic bias. 10 years from now, Buffett’s legacy will be remembered for two things. Buying Apple with other people’s money. And denying the Bitcoin opportunity to tens of millions of boomers who take his word as gospel, and by extension, leaving BTC out of their legacy estate for 100 million grandchildren. Great job Warren. 8+ years of taking your faithful down the wrong fork in road.

Warren openly said his worst investments are the ones he didn't make. The 'loss of commission'. There's no doubt his worst investment is not buying Bitcoin.

His analysis was all analogies with little to no insight into the mechanism itself.

@Trademark_J Confirmed Ponzi scheme. Saylor is a bozo

Michael Saylor is issuing high-dividend preferred stocks to fund purchases in Bitcoin to drive up its price since supply is limited. However, some of the proceeds are used to fund the promised returns. To me, the approach resembles a Ponzi scheme.

A real estate company raises capital against its properties and uses it buy new properties. They use some of that capital to pay for operating expenses. What is the difference? A ponzi scheme is the US Treasury buying back $15 Billion of it's own debt in a single day. The money they borrowed was created out of thin air and they bought it back with money that was created out of thin air.

Using the proceeds from new share issues to fulfill commitments to promised high dividends when there are no other proceeds to use. Isn't that what defines a Ponzi scheme?

Are you broken?

I don’t believe his argument was that $STRC is a ponzi. His argument was that it should not be advertised to retail as a fixed income/credit product or using terms such as “bank” “ bank account” in its advertising. Since the underlying “product” is preferred equity.

Have you ever gone to a doctor and you can tell that they never looked at your chart this coffeezilla guy doesn’t even know what STRC is! Doesn’t describe perpetual preferred, or how this instrument strips the volatility into dope ass returns

I know exactly what you mean about the doctors, yes.

I tried to phone $TSLA and get my money back but they didn't even answer my message. Fucking scam just like $LUNA.

No chance that @elonmusk wouldn't call you back. I'm calling this out as a made up story!

@elonmusk CAUGHT ME

@elonmusk

So, there is no risk? Or…? All high-dividend investments carry risk, otherwise, they wouldn’t pay such high dividends.

What good has mstr done for you?? Did you get money from them? MS is buying bitcoin is a very bad thing for the community, i rather he keeps away from BTC. He is going to ruin it for us!!!

@FnnyPicsDaily I think you've had too much cheese dude.

Again. Its ok. Believe MS whatever you want. Give him all your money because you are going to get rich, i come back to this post after everything is blown up and you lost everything😬😬

@FnnyPicsDaily Whatever makes you happy man. I follow the math. You do you.

Same

😆🤪

Was't there some funds that stopped payout latly? Guess what in a Bank run the Bank won't pay you. There is a risk in everything.

Yes - Blue Owl Capital put limits on withdrawals to their private credit investors recently. Morgan Stanley also limited withdrawals on their North Haven Private Income Fund. Like you say, there's risks in any investment - making videos talking about hypotheticals that have no substance for cheap engagement is disingenuous

This is a tiny version of Buffett calling BTC rat poison squared. He never bothered himself to understand it so therefore it must suck. The huge difference is Buffett told millions of boomers to stay away from what will prove to be the biggest asset miss in boomer portfolio history. Coffeezilla is a twerp by comparison but gives fuel to those looking for validation of their natural pessimistic bias. 10 years from now, Buffett’s legacy will be remembered for two things. Buying Apple with other people’s money. And denying the Bitcoin opportunity to tens of millions of boomers who take his word as gospel, and by extension, leaving BTC out of their legacy estate for 100 million grandchildren. Great job Warren. 8+ years of taking your faithful down the wrong fork in road.

The harder people start to defend their “guru” the more convinced it makes me coffee is right🤷🏿

@FnnyPicsDaily That's your prerogative. Knock yourself out.

Its ok, i wil come back to this post when(not if) it has al been blown up and you have lost all your money🫣

Saylor love euphemisms- the facts speak for themselves

Normal companies pay dividends from cashflows, Strategy has no cashflow and relies on MSTR holders willing to subsidize it by paying a premium. If they stop doing it, Saylor runs out of options, offcourse it’s in his best interest to pay dividends but if the only option is to sell BTC?

You don't seem to understand it at all. Their dividend obligations are currently $731m per year. They have over $2 Billion of cash sat on their balance sheet, so they could literally do nothing for the next 2.5 years and have enough cash to pay their dividend obligations. MSTR holders are not subsidising anything. When they issue STRC, they buy Bitcoin with it. That Bitcoin will increase in time, as it does, they are able to leverage it, issue new shares, buy Bitcoin and continue to build their USD reserve. To say they don't create cashflow as an operating business is also factually incorrect. MicroStrategy (their BI software business) generated $477 million of revenue with $328m gross profit in the latest financial year.

Dividend liabilities are 1.2b yearly and growing fast. Their operating business has a neglible free cash flow (<10m). MSTR holders are subsidising the dividend payments, that cash pile of $2b got their by selling MSTR at a premium. He needs to pay >1.2b yearly forever.

As I said "You don't seem to understand it at all."

Yes, they were able to raise that amount in a DAY. What's your point?

You blame me for not understanding it, but you are the one with the wrong numbers.

That total is across all of their preferred stocks, not just STRC, which is what we're talking about in this post. But even if their obligations are $1.2B ANNUALLY across ALL of their preferreds, they raised $1.2 Billion on Tuesday and $865 million on Monday. Their ability to pay their dividend obligations is a non-topic because every time they sell STRC, they buy Bitcoin with the proceeds. This builds the moat and allows them to sell MSTR against that Bitcoin to buy more Bitcoin, which then allows them to sell mor STRC etc. Even if Bitcoin goes up just 2% a year, they will be able to pay their dividend obligations forever.

Question: where does that cash come from? Not from Bitcoin it sits frozen on the balance sheet. Not from operations Strategy barely has any. Answer from NEXT round of STRC issuance. New investor money pays old investor dividends. That's the functional definition of a Ponzi

Are you asking a question or giving me an incorrect answer to demonstrate your lack of understanding?

Happy to be corrected. So tell me specifically: where does the cash to pay STRC dividends come from, if not from new capital raises? Not paper BTC gains. Actual cash.

Where does the cash to pay $STRC dividends come from? It comes from the Bitcoin appreciation over time. Why does it offend you if they raise more capital from the appreciation of Bitcoin? McDonalds literally buy land, build a restaurant, borrow against that property to buy more land, to build a new restaurant, then borrow more against that property to buy a new restaurant etc. Their revenues from the food side is dwarfed by their balance sheet which is real estate. Only 1% of their $59 Billion balance sheet is cash. Strategy is no different, but just on the digital finance side. They buy an asset, they borrow against it, they buy the asset, they borrow against it. When they issue STRC, they buy Bitcoin, it rises 20%, they borrow against it and pay the 11.5% dividend. Their balance sheet has increased by 8.5% each year it does that. I don't understand how people are so offended by such a simple concept that happens in every business industry in the world.

The McDonald's analogy breaks down at one critical point: McDonald's services its debt with operating cash flow — billions in food sales every year. The real estate is the collateral. The burgers are the engine. Strategy has no burgers.

You literally said it yourself: "BTC rises 20%, they borrow against it to pay the 11.5%" That means new debt/capital pays existing yield obligations. The collateral is real. The cash flow isn't.

And borrowing new capital to pay existing investors has a name — regardless of whether the asset backing it exists.

So you don't have a mortgage on your home? You've never drawn down equity in your home to do renovations in your garden? Is that a ponzi becasue you're paying a landscaper with new capital from the property? Think clearer mate.

Just explain the 666 print with normal theory and mo one will hunt you down after you bankrupt their favourite uncle

Well, yeah. I hope you’re right. But I lost 20k$ on the terra luna thingy and this gives me the same vibes

Terra Luna was backed by nothing. STRC is a SEC regulated preferred stock, backed by a Nasdaq billion dollar company, backed by the soundest monetary system ever created. The two scenarios are not comparable.

Just like mstr common deserves a 5x multiple, right? You've stated no facts. Just hopium and willing ignorance to what your gut knows is true.