Unfortunately, Saylor is doubling down on his very bad idea to keep capping $STRC at $100.00
In his example, someone is shorting $10bn of STRC at $100 AND Strategy is able to keep issuing a ton of STRC at $100 at the same time, but that's not what's going to happen
Some people will be shorting a lot of STRC between $99 and $100, which will prevent the price from reaching $100 and incentivize holders to sell right below $100 too.
STRC not reaching $100 means Strategy has to keep deploying efforts and money to get it back to par, which in the current situation means selling BTC or MSTR at a 'low price' to buy STRC close to $100, ie the exact opposite of the trade he wants to do once STRC is at par.
The only thing that will push STRC decisively to $100 will be BTC pumping high enough, which also implies that when Saylor will be able to raise USD, BTC will be at a "high price" on a relative basis.
His reasoning is that he wants holders to be certain that STRC won't go above $100, which should reduce uncertainty and paralysis with regards to buying/selling STRC.
I think that's completely wrong because he's imagining that the ideal scenario will be STRC trading between $99 and $100, so he caps STRC at $100 to get closer to this idealistic scenario, but he doesn't realize that it's unrealistic and will never happen.
I's mathematically IMPOSSIBLE to reduce the volatility of STRC down to 1%, the volatility swings will always be around 10%, but now instead of having this volatility between $95 and $105, he's forcing it to be between $90 and $100.
So the holders will have the uncertainty/paralysis anyway, but they'll have it at a lower price and with a much worse r/r profile than if he didn't cap STRC at par.
I'm going to write a full article on this topic because it's important and I'm surprised he's doubling down on this.
https://x.com/TNorth/status/2089509833699369363
Forwarded fromCrypto Narratives
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True North (@TNorth) on X
What happens to Strategy if someone shorts $10 billion of STRC at 100?
@saylor was asked whether the company should squeeze the shorts instead. He ran the arithmetic the other way.
"So we're not trying to discourage short selling."
"If someone wants to…
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1August 18, 2026 1.4K 13
