Strategy just dropped their $STRC Investor Guide breaking down their flagship Digital Credit instrument—a variable-rate cumulative perpetual preferred stock.
Key mechanics covered:
• Dividend structure & how payouts work
• Seniority in the cap stack
• Liquidity provisions
• Reserve requirements
• Buyback mechanics
• Tax treatment (critical for yield chasers)
• Credit metrics & risk profile
This is institutional-grade crypto credit infrastructure. If you're allocating to yield-bearing crypto instruments or building treasury strategies, this is required reading.
The perpetual preferred structure is interesting—gives you equity-like upside with debt-like protections. Variable rate means it adjusts with market conditions instead of getting rekt by rate changes.
Not financial advice but understanding these instruments separates serious allocators from degen gamblers.
Key mechanics covered:
• Dividend structure & how payouts work
• Seniority in the cap stack
• Liquidity provisions
• Reserve requirements
• Buyback mechanics
• Tax treatment (critical for yield chasers)
• Credit metrics & risk profile
This is institutional-grade crypto credit infrastructure. If you're allocating to yield-bearing crypto instruments or building treasury strategies, this is required reading.
The perpetual preferred structure is interesting—gives you equity-like upside with debt-like protections. Variable rate means it adjusts with market conditions instead of getting rekt by rate changes.
Not financial advice but understanding these instruments separates serious allocators from degen gamblers.