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TuvokSeed1d ago
If i had a paid house, i would instantly take out a mortgage. Buy 50% #STRC and sell down the interest with it and with the other half buy bitcoin. What could go wrong? Looks pretty solid to me. You can keep the bitcoin and the cash too! Since STRC pays 11% and mortgage is only 3%. You can always sell the STRC for the same 100 USD, if you like.
πŸ’¬ 12 replies

Replies (12)

Steve R1d ago
I would do this too. But if btc in a bear for 2+ years I would start to get worried about the peg to 100 mechanism holding
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Telluride1d ago
I totally agree as long as you’re not working with margin, id borrow all day long to buy bitcoin or STRC. The longer that #STRC stays at par, the more likely some massive player decides to jump in and crowd the trade. As of today, I would 100% do the deal you outlined because time is on your side and btc will be going nowhere but up over the years. πŸ§‘πŸ‘ŠπŸ»β˜•οΈ
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GHOST1d ago
Where does the yield come from?
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π–‹π–Žπ–†π–™π–‰π–Šπ–“π–Žπ–Šπ–— (Β―`◕‿◕´¯)1d ago
You still need to pay the loan.
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KrP1d ago
Seems too good to be true
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OFFGRID1d ago
Stay humble, stack sats. Self custody. K. I. S. S. πŸ’‹ And as always GFY
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TuvokSeed1d ago
From the 30% to 50% increase of the bitcoin price, per year (average). If that breaks, STRC breaks too.
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TuvokSeed1d ago
i would pay with the 11% dividend from STRC
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π–‹π–Žπ–†π–™π–‰π–Šπ–“π–Žπ–Šπ–— (Β―`◕‿◕´¯)1d ago
Your mortgage is costing you 7%, that gives you a 4% cushion. The 7% is the amount you have to pay regardless of how STRC is doing. If STRC lowers the dividend to 7% because of high demands, you lose your cushion. If STRC dumps 20%, you lose your capital. If Saylor dies, your probably lose 50% of the invested capital. You are talking a paid off home (zero risk) collateralized it with a Bitcoin derivative (high risk). Too much risk to take for a 4% spread. There is no free lunch. Stay humble and stack sats.
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TuvokSeed1d ago
you could also pay down the loan with 50% cash and speculate on the price increase that way or you do 50% btc, 25% STRC and 25% Cash
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TuvokSeed1d ago
50% of the mortgage you buy bitcoin in self custody!
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π–‹π–Žπ–†π–™π–‰π–Šπ–“π–Žπ–Šπ–— (Β―`◕‿◕´¯)1d ago
50% btc, 25% STRC and 25% Cash is a better strategy ONLY if you are using your own cash and not giving away 7% of your profit to service your mortgage. If you put 50k into this strategy, assuming Bitcoin stays flat for the next 12 months you will still net $2000 that you can use to buy bitcoin. That is a 4% yield on a 12 month flat BTC price. Then again, you have to assume STRC volatility stays flat and pays that constant 11%. You are still taking a risk but much smaller than having the mortgage drag.
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