This product is interesting. Unlike previous preferred stock products, STRC's price will be controlled in a narrow range of $99 to $, mainly returning benefits to holders through high monthly dividend payments.
Yes, you heard that right. This STRC sounds very similar to the well-known synthetic stablecoin or algorithmic stablecoin. However, traditional algo stablecoins peg 1 coin to $1, while STRC pegs 1 STRC to $100.
STRC's backing asset is BTC. It inevitably reminds one of the Luna/UST collapse. If Luna/UST had successfully anchored to BTC, would it have survived instead of exploding? Unfortunately, history has no "ifs". Or conversely, could Luna/UST be a preview of the upcoming BTC/STRC?
The following image is a comparison table of product characteristics for STRC, STRK, STRF, and STRD.
How does STRC maintain its price fluctuation range between $99--$101?
The answer is simple: through open market operations similar to how the Federal Reserve intervenes in market exchange rates.
As shown in the image:
When STRC price exceeds $101, MicroStrategy worries about high high stock prices causing investor difficulties, so it will:
>Reduce STRC dividend rate (reduce attractiveness, lower stock p>2) Issue additional STRC in the secondary market at $101 or lower
3) Redeem issued STRC at $101 (repurchase high-price notes to avoid expanding interest burden)
These three steps can release more liquidity to the market, reduce stock costs, and thus press the price back to the target range.
When STRC price falls below $99, indicating market confidenceence is insufficient and selling pressure increases. To prevent malicious decline, MicroStrategy will:
1STRC dividend rate (enhance attractiveness, attract investors back)
2) Stop issuing STRC at prices below $99 (pause ATM mechanism sales to avoid price suppression)
These two steps are contractionary measures, to reduce supply, increase, and support the price.>The rest of the translation follows the same detailed approach, maintaining the technical technical and financial language while translating the entire text to English.
