A half-baked rumination I had following the news yesterday was that STRC might eventually act as a circuit breaker for a blow off top...
Tops happen during peak mania by nature. So, if spot runs big to the upside, massively outperforming the 11.5% in a short period, would that not cause many STRC holders to sell and chase spot?
Those sellers being numerous enough to create a discount to peg would give Strategy an opportunity to buy back STRC at a discount... still positive from their perspective in Bitcoin to liabilities, but pouring water on the spot market until such time the 11.5% looks attractive again.
He's spoken of vol compression, which it seems to be doing here in a latter stage bear market, stands to reason it would too in a latter stage bull market.
A half-baked rumination I had following the news yesterday was that STRC might eventually act as a circuit breaker for a blow off top...
Tops happen during peak mania by nature. So, if spot runs big to the upside, massively outperforming the 11.5% in a short period, would that not cause many STRC holders to sell and chase spot?
Those sellers being numerous enough to create a discount to peg would give Strategy an opportunity to buy back STRC at a discount... still positive from their perspective in Bitcoin to liabilities, but pouring water on the spot market until such time the 11.5% looks attractive again.
He's spoken of vol compression, which it seems to be doing here in a latter stage bear market, stands to reason it would too in a latter stage bull market.