Saylor Welcomes $10B STRC Short Position: "Favorable to Us"

According to Strategy Inc. Chairman Michael Saylor, a $10 billion short position against STRC preferred stock would be favorable to the company.

Saylor's Specific View on the STRC Short Position

Saylor laid out this logic in a video shared by the True North account. He calculated a hypothetical $10 billion short scenario for STRC, with a par value of $100.

The short seller would have to pay a 12% annual dividend on that position, generating $1.2 billion in dividend payments, which would effectively double STRC's assets under management from $10 billion to $20 billion.

Strategy receives the credit line, while others finance the dividends.

"If someone wants to short $10 billion when this thing reaches $100, then we get a $10 billion credit line, and other people pay 12% interest on their $10 billion," Saylor said.

"We won't worry about how the short seller views this," he added.

His broader point is that keeping STRC as a stable, low-volatility credit instrument can maximize liquidity, which increases demand and ultimately benefits MSTR common stock and the company as a whole.

Why One Analyst Thinks Saylor Is Wrong?

DeFi analyst Viktor directly countered on X, arguing that the $100 cap does more harm than good.

Saylor's scenario assumes STRC reaches $100 and stays there, allowing Strategy to issue new shares at par value to meet short demand.

Viktor argued that short sellers would dump heavily between $99 and $100, preventing the stock from smoothly reaching par value, forcing Strategy to maintain that level by selling Bitcoin or MSTR at unfavorable prices.

The volatility argument is where Viktor draws the sharpest line. Capping STRC at $100 does not eliminate volatility; it just shifts it to a lower level.

Instead of fluctuating between $95 and $105, the stock would fluctuate between $90 and $100, giving holders the same uncertainty but at a lower price, with a worse risk-reward profile.

"It is mathematically impossible to reduce STRC's volatility to 1%," Viktor wrote. "The volatility range is always around 10%."

Viktor added that he plans to publish a full article detailing this view.

Trader's note: As of press time, MSTR is down 2%, trading near the $90-$92 support level, while $105 remains a key resistance level.