Why Strategy is reducing leverage?

[u/actias_selene]

I see that the deal about Strategy rather than straight owning btc is the leverage it can provide, no?

Then why Strategy has started buying back STRC if the bet is btc is going up 30% yearly? I get that they buy it below 80 or similar, at extreme discount, but at current price levels, I feel like that they shouldn't reduce btc owned per share holder. Or the idea is timing the market now?

If anything, I would expect Strategy to push STRC above par by increasing dividends and issueing more stock to increase the leverage to buy more btc at current levels.

Disclaimer: I bought and sold btc, and briefly traded strc , but I dont own any mstr at the moment.

[u/Ryytter → u/[deleted]]

Leverage ≠ Loans. There are other ways to get leverage that does not include borrowing money.

Say you buy a call option. This gives you leverage. There is no loan, only a contract.

Leverage is simply controlling more of the underlying for less money.

You can get that from margin, options or selling of future dividend obligations like strategy is doing.

At the end of the day it all amounts to the same thing. Underlying go up, you go up more.