I watched the Peter McCormack interview finally and I loved the first hour of it. Felt like listening to 2021-2023 Saylor all over again. But the last 10 minutes is about STRC. At 1:09:23 he says the following about STRC... "It's a return of capital dividend."
What this actually means is you are having your original investment handed back you as an imaginary "yield" even though it is actually your own original investment being handed back. That is the very legal definition of "return of capital." There is no "yield" on Bitcoin because Bitcoin has no earnings or dividend. So you are not making any "inherent" money there. If you invest $1000 in STRC and make 1% per month, that $10 "dividend" is just $10 of your original $1000 being handed back to you.
Now, if you sell the instrument for the same $1000 you bought it for, in one year that is because someone took your "investment" off you, not that is really worth the original $1000 you put in. You already had your capital being "returned" to you 11% at a time while you owned it. The rest is finding someone to pay to what you put in, or more, or less.
Yes, that is also how non-dividend paying stocks work as well. But the stock represents shares of a money-earning business. Bitcoin is not that. I love Bitcoin. But Bitcoin does not produce "yield." Period. The proof of this fact is that even Saylor admits your so-called dividend "return of capital." I don't think most people realize the blinders they have on about this fact.
It will work... until it doesn't. STRC and the other products are essentially derivatives wrapped in an arbitrage. Saylor is betting that Bitcoin rises faster than its 11% yield. As long as it does and not too many people head for the exits at the same time, it works. But when it ceases to.... look out below.