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Zynx
@ZynxBTC
Bitcoin | Investor | Austrian Economics
Joined April 2016
196 Following    22.2K Followers
Trust the process. My post about $SATA went over a few heads. That's okay. It's now back above $97, without a penny spent on buybacks. The point is, the $ASST team can simply do nothing and wait for it to return to par. If that doesn't work, they have other options that don't involve buybacks. Bullish.
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I am not worried at all about $SATA. It's spent almost a month below par but it's comfortably holding above $95. Before anyone brings up my posts on $STRC, it's important to understand the nuance here. Strive hasn't spent a single cent on buybacks. It has just launched another preferred, $SATS, which inevitably pulled some capital out of $SATA. Bitcoin's price action has also contributed to the move away from par. I don't think they should consider buybacks at this stage. Instead, they could do nothing and wait for Bitcoin to stabilise or move higher. Failing that they could raise the yield. It's a variable rate after all. $SATA has $1.4B of notional outstanding, so each 0.25% increase in the rate only costs $3.5M a year. I'd happily see it go to 13.25% or 13.5% to stimulate demand. Even 13.5% would only cost $7M a year in extra dividends. People worry about how hard it would be to bring the rate back down but that fear is overblown. It's a variable rate and holders should expect it to move. If a cut ever comes, it will be because demand for the product is very strong. Anyone who wants a fixed rate can buy $SATS.
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