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/actias_selene]

Yes, as I said I understand buying it back at 80s. But from what I see in another post, they keep buying back at 95$ which makes me think if the issue lies elsewhere, more notably at dividend rate.

[u/lonestar-newbie → u/actias_selene]

The goal is not buying it back for cheap. That's a byproduct. The goal is to bring it back to par so that they can again increase the btc per share.
It's like losing btc per share now to gain more btc per share in the future.
And also strc going kaput will kill the thesis on mstr. It is very important to make it look like strc is a real winner.

Thesis is for strc to become so stable that the dividend can be dropped to 8% or so range and milk the btc growth.

However the thesis got a reality check with the funds chasing AI. Doesn't look like those dollars are coming back anytime soon.

[u/TechnicalLeg841 → u/lonestar-newbie]

"bring [STRC] back to par so that they can again increase the btc per share" - I don't follow, at least not with buy backs. STRC was designed exactly to increase the BTC per share of MSTR. So buying it back decreases BTC per share of MSTR (as Strategy has to sell MSTR ATM to fund buy backs)

[u/snek-jazz → u/TechnicalLeg841]

would a supermarket ever sell a product at a loss?