you are not their target audience

the reality is that a credit investor that does not understand bitcoin would never buy this preferred stock. The target customer is bitcoiners or people blindly sold on yield (what could go wrong).

Just because the writer can't imagine someone who could be interested in strc and not btc, that doesnt mean they dont exist.

Someone who does not understand bitcoin could be of the opinion that bitcoin has reached its fully adressable market, and will trade sideways indefinetly, and not be of the opinion that its going to 0 or the moon. This buyer of strc is making that bet, in order to bleed mstr dry. Mstr is making the bet bitcoin goes up.

As long as companies like strategy and strive maintain more btc on their balance sheet than preferred, the strc investor can bet on getting all their fiat money back and more.

The buyer of these preferreds are a similar type of person who would sell long dated ibit calls.

Obviously there are plenty of additional risks this type of investor needs to be aware of, like the possibility of a treasury company cranking their preferred interest rate to 0 rather than letting it bleed them dry, but I dont see that as guarenteed, as these companies still want the leverage unless they are truly going down the drain. Strategy current holds something like 30 years of dividend coverage worth of bitcoin. Someone making the sideways bet can make the bet on at least getting a third of that back before strategy permanently KOs their preferred by running the rate to 0, which would result in the strc investor having more fiat than what they started with(10 years at 11% > 100%).

Im not saying the terms of the bet are good, im just saying its a bet that someone could think is worthwhile.

Its not a ponzi but it strongly depends on the appreciation of bitcoin. If bitcoin appreciates greatly then its fine... But that's no guarantee (thank you captain obvious)