Lyn Alden

Lyn Alden from Lyn Alden Investment Strategy asked about Strategy's views on an appropriate minimum USD reserve for STRC dividend coverage, whether there's a maximum dividend rate for STRC, and if the company monitors or encourages/dissuades the development of leveraged financial products built on STRC.

Answer

CEO Phong Le stated that Strategy targets 2-3 years of dividend coverage with the USD reserve, aiming not to go below 2 years. He noted there's no current cap on the Stretch rate, as it's early in the instrument's lifecycle, but it would be a function of maintaining price stability around $100 and general interest rates. Regarding leveraged products, Phong Le acknowledged they add liquidity and interest, and while the company can't stop them, he doesn't necessarily view them as a bad thing.

Lyn Alden asked about Strategy's views on an appropriate minimum/maximum USD reserve for STRC dividend coverage, given its variable dividend, and whether the company monitors, encourages, or dissuades leverage built on top of STRC.

Answer

CEO Phong Le stated that Strategy targets 2-3 years of dividend coverage with the USD reserve, aiming not to go below 2 years. He noted there isn't a current cap on the Stretch rate, as it's early in the instrument's lifecycle and dependent on market conditions and interest rates. Regarding leveraged products built on STRC, Le acknowledged they add liquidity and interest, and while the company can't stop them, he doesn't necessarily view them as a bad thing.