DonAlt Lays Out The Death Loop In Plain Terms

When the market drops, STRC depegs, Saylor sells Bitcoin below his average to repeg it, which pushes Bitcoin lower, forcing more Bitcoin sales.

When the market recovers, he issues more STRC at higher Bitcoin prices and the cycle repeats with a higher cost basis each time.

Peter Schiff added the immediate damage. STRC closed at $89, meaning buyers who paid $100 par value at launch are down 11%. 

New buyers now get a 12.92% yield. If Saylor raises the coupon to 13% to attract demand, he must sell more MSTR at a deeper discount to fund it. If he does not raise the yield, STRC keeps falling.

Saylor’s Counter: Refusing To Sell Bitcoin Would Destroy… Read more on Benzinga