Wall Street Mogul: "Earned $750,000 with STRC instead of Bitcoin (BTC)"

▲ Strategy (MSTR), STRC/AI Generated Image

Amid the increasing volatility in the virtual asset market, a veteran investor's strategy of focusing on derivative securities of related companies instead of Bitcoin (BTC) to earn substantial profits is drawing attention.

According to crypto media outlet Benzinga on September 23 (local time), Cardone Ventures CEO Grant Cardone announced that he realized a profit of approximately $750,000 through an investment in Strategy (MSTR) preferred stock STRC. CEO Cardone explained that he aggressively bought STRC during a panic-selling phase when its stock price plummeted to around $75, earning a total of $742,500 including dividends. This particular instrument is designed to pay a high annual dividend of 12% and converge towards a $100 baseline in the long term.

CEO Cardone repeatedly emphasized the importance of securing cash, warning of the possibility of further short-term corrections in the virtual asset market. Cardone stated that he is currently refraining from directly buying Bitcoin and maintaining a wait-and-see approach, stressing that he would only make a $5 million purchase if the price drops further to the $70,000 level. Cardone's assessment is that Bitcoin could test the $74,000 to $75,000 range, and if macroeconomic shocks are added, it could fall to $55,000.

He pointed out that the deleveraging phase, where leveraged investments made with excessive debt are being cleared in the virtual asset market, has not yet fully concluded. CEO Cardone asserted, "The true bottom arrives when extreme pain dominates the market," and "Only those who wait with sufficient liquidity in hand can seize opportunities during a market crash." His strategy of avoiding the downside risk of direct Bitcoin ownership while simultaneously aiming for fixed dividends and capital gains was deemed effective.

Market analysis suggests that as Bitcoin continues to search for direction around the $85,000 mark, institutional-grade investors' risk-hedging strategies using derivative financial products are becoming increasingly diversified. The movement of smart money, which takes advantage of temporary liquidity shocks unrelated to fundamentals, also offers important implications for individual investors.

[Key Article Summary]

-CEO Grant Cardone bought Strategy preferred stock STRC at a low point after it plummeted to $75, realizing a profit of $742,500.

-Cardone stated that he would invest $5 million if Bitcoin drops to $70,000, indicating he would hold cash and observe the market for the time being.

-He warned of further downside risk and the potential for market deleveraging, highlighting the importance of contrarian dividend investing that capitalizes on temporary panic phases.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*