Flood's X Spaces Podcasts

Comfy Sunday Spaces v30 - Victory Lap + Q&A

Comfy Sunday Spaces v27 - Jane 15B loss, STRC, CFTC, BTC VOL

Speaker explains Saylor's STRC—a 12% yield preferred funding Bitcoin buys—and argues panic to 70 cents was overblown, making it a great trade. - STRC is a perpetual preferred offering paying ~1% monthly (12% annual) yield in-kind, usually taken as a lower entry basis for tax efficiency. - Saylor and MicroStrategy issued over $10B (up to ~$13B) of STRC and immediately used the proceeds to buy Bitcoin, effectively running a 1.2x leveraged long. - The instrument is a way for large institutions (Fortress, PIMCO) to supply leverage to Saylor; default would be catastrophic for his credibility, making it very unlikely. - Recent volatility hit when Interactive Brokers changed margin requirements, forcibly unwinding "STRC looping" trades; the price fell from ~98 to 70–73 cents, triggering panic and false Terra Luna comparisons. - The speakers averaged down in the high-80s, felt uncomfortable at 70, but ultimately saw it as a great trade because the core bet is simply on Saylor's willingness to honor the debt. - Key lesson: differentiate the financial instrument from the brand, distribution channels, and AI/hype — the underlying game theory matters more than the noise. Conclusion: Treat STRC as a leveraged credit trade on Saylor's credibility, and use forced-liquidation or panic dips to accumulate — if you believe he will never default.