I used to do this until River offered the 3.8%. That’s about the same as the 4.25% MM rate on an after-tax basis. Not sure if the 3.8% is supposed to be taxable as well, but it didn’t show up on my River tax docs. So the net-tax rates are closer than you’d think, and it’s just one less transfer I have to make every month out of my brokerage and into Strike or River to buy bitcoin. From a qualitative perspective, I like it because it feels like I’m supercharging my normal DCA.
Discussion
sure. for me it seems dubious for it to a priority for Strike, but the people have spoken! i know it’s on our roadmap. probably Q3, definitely before the year is over
You’re a man of the people. I’ve had the same thought many times, that’d it would likely be better to just be 100% in bitcoin. Maybe the truth is I just really hate the idea of selling bitcoin to pay expenses, I like seeing the bitcoin count only go up.
I know that’s antithetical to treating bitcoin like a real currency, but trying to overcome that feeling. Bought Steak & Shake with BTC this past week, so progress.
Have you considered STRF or STRK? Might meet your needs much better than anything else in the market
Until MSTR holds its bitcoin somewhere other than with Coinbase as a custodian, I don’t want to introduce more risk than just holding self-custody Bitcoin or cash.
They also use Fidelity, so there you go 👍🏼
But even if they lose all their bitcoin (extremely unlikely), the portion of the company that’s not attached to their bitcoin holdings is enough to cover their Convertible bond and STRF obligations.
I trust Fidelity a lot more than Coinbase, didn’t realize MSTR had diversified. That’s very positive news. Thanks for this
9.5% effective yield ($10/share)
It has good upside too even though it’s supposed to behave like a treasury bond
Senior on the capital stack.
Much better than any savings account or money market fund.