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Strategy 2026-08-03
Strategy’s Digital Credit Capital Framework (DCCF) does not seem to be working. As discussed previously, Strategy (MSTR) introduced the DCCF at the end of June with the stated purpose of strengthening its USD reserves for paying interest and preferred stock dividends and potentially doing buybacks of its securities. The underlying purpose was to address the…
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QE Losses 2025-6
The 2025-6 accounts for the UK APF are here. Compared to previous years, things are neither much better or worse: the large accounting loss remains and is slowly being crystallised by payments from the Treasury to meet the shortfall. (from Bank of England Asset Purchase Facility Accounts 1 March 2025 – 28th Feb 2026) The…
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Strategy 2026-06-29
So, how is Strategy doing? Not great — STRC (one of the preferred stocks issued by Strategy) is well below par and was falling fast. That is presumably why they have just announced their Digital Credit Capital Framework (SEC filing). So what does it mean? USD Reserve Policy Under the policy, the USD Reserve may…
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“BTC Yield”
I have an investment opportunity for you. I have a bag, into which I have put £100. My offer to you is that you add £3 to the bag, and in exchange I give you 1% ownership of the bag and its contents (retaining 99% myself). Your first response might be that this seems like…
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Big Tech and the AI Bubble
A large fraction of the world’s stock market value is concentrated in a relatively small number of big American tech companies. Those companies are spending a lot on AI. If that investment proves uneconomic, how bad is it for them? I am not going to try to decide how likely it is that this is…
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QE Losses 2025
The accounts for the UK’s Asset Projection Fund for 2025 are released. Something that I did not mention in my last post is that the APF accounts are presented in a rather obfuscated fashion. Specifically, the Bank is the legal owner of the APF’s share capital; but the Bank is not the beneficial owner since…
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QE Losses and Bank of England Reserve Interest
There has been a lot of press coverage over the last three years over the losses that the UK government is incurring on its quantitative easing programme, and the related issue of the payment of interest on Bank of England reserve accounts. However it was not clear to me how these issues were related or…