400K I need to find a home for; paying out 100K in 6 months.

Man, I read that as 401k at first and I was so confused

STRC

Preferred security with ~9% dividend and potential slim price appreciation (launched at $90 last month, $96.39 currently with desired peg between $99 and $101). Yield will increase 0.25% per month until it is in the desired $99-$101 range. If it ends up exceeding $101, yield will decrease 0.25% per month. The goal of this is targeting the money market/fixed income area of finance. Overcollateralized by the tune of 6.1x (i.e. bitcoin could fall by over 80% and this preferred is still collateralized fully by the assets on MSTR's balance sheet in a liquidation event). For comparison, Investment Grade bonds are usually around the 2.1x collateralization.

Quite a risk scenario here.

Someone already suggested separating the 100k that you'll need to pay out and that is the best move. Take a different strategy with the other 300k.

What to do with that 100k? Since it's a known liability, you don't want to assume risk with it and end up losing money. Maybe go with with some sort of 6 month treasury security that are currently around 4%, pocket a couple grand and not put that 100k at risk. It may be conservative, but if I know it's a liability, I'm not getting cute with how I manage that money.

treasury account with the fed and buy some T-bills that expire when you need the cash

So what are you planning to do with 300k if you don’t need the money?

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This means that the issuer, MSTR, can continue to issue new debt and preferred shares on top of this offering

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Why is this an issue? If STRC starts to become undercollateralized then move to cash? The demand for preferreds is not there yet for that to happen though. Would need a more senior offering to come out and issue to the market in the tune of like 20x the amount that STRC was issued at and that was already the largest IPO of the year.

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. “The assumption is that appreciation on the Bitcoin purchased will be sufficient to provide the cash needed,

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I have zero issue with this at this point in bitcoin's life

I'm not knocking the fund. Im too retarded to understand what it even does. All I know is if I owed people $100k in 6 months I would not put it into some new microstrategy bitcoin collateralized fund that is supposedly "safe" but pays a 9% div which IMO does not compute. I'm putting that bit into a money market or HYSA and forgetting about it until I write the check.

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Why not just a high yield savings to make 3% on the stuff you will need.

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SWVXX at Schwab is paying just north of 4%. Could change I know, but so could a savings account.

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SWVXX at Schwab is paying just north of 4%. Could change I know, but so could a savings account.

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Well yes. My high-yield savings account is paying three something but it’s only guaranteed for like 90 days at a time next month.
The benefit is is that it’s FDIC insured.

if you put any part of the 100K you owe at risk you should have your head examined. Money market would be the only option I would consider

what you do with the 300K is up to you