The "Stretch" (STRC) dance is starting to look less like a masterclass in capital strategy and more like a tutorial on how to build a machine that prints paper from a Cracker Jack box.
It doesn't take a corporate visionary to:
1. Issue a new class of stock.
2. Slap a high yield on it.
3. Use the cash to buy an asset that's going down.
4. When the yield payout gets tight, sell a tiny bit of that asset to pay the yield.
That's not leadership. It's a desperation loop.
· Leadership: Builds a system that creates sustainable value.
· Crackerjack Box CFO: Builds a system that creates obligations. When the asset price falls, the obligations remain. To meet the obligations, you have to sell the asset. Selling the asset hurts the story. A weaker story makes the stock fall. A falling stock makes the next equity raise more dilutive. The loop feeds on itself.
The carnival's matryoshka doll now has one more layer: Strategy (MSTR), holding STRC, holding MSTR stock, holding... more STRC?
At some point, you're just opening the last doll. And it's empty.
The bench is still watching. 😏🎭🪑
It doesn't take a corporate visionary to:
1. Issue a new class of stock.
2. Slap a high yield on it.
3. Use the cash to buy an asset that's going down.
4. When the yield payout gets tight, sell a tiny bit of that asset to pay the yield.
That's not leadership. It's a desperation loop.
· Leadership: Builds a system that creates sustainable value.
· Crackerjack Box CFO: Builds a system that creates obligations. When the asset price falls, the obligations remain. To meet the obligations, you have to sell the asset. Selling the asset hurts the story. A weaker story makes the stock fall. A falling stock makes the next equity raise more dilutive. The loop feeds on itself.
The carnival's matryoshka doll now has one more layer: Strategy (MSTR), holding STRC, holding MSTR stock, holding... more STRC?
At some point, you're just opening the last doll. And it's empty.
The bench is still watching. 😏🎭🪑
