Strive just paid a record price for bitcoin money — Bloomberg calls it distressed-debt territory.
The Nasdaq-listed treasury firm closed a $630M preferred-share offering Tuesday, upsized from 5M to 7M shares. The SATS preferred pays 15% a year on a $100 stated value — but priced at $90, the effective yield is ~16.7%, which Bloomberg says approaches distressed-debt returns. The prospectus sets aside $157.5M to cover the first 18 months of payouts, with dividends — if declared — landing every business day from Nov 9.
Meanwhile Bloomberg reports Strategy's 12%-yielding STRC preferred hasn't been issued since June, and the firm is now eyeing daily dividends plus more common-stock sales to keep buying bitcoin.
The machine still works — it just costs nearly 17% now. When the funding vehicle yields like distressed debt, every future bitcoin buy carries a higher hurdle rate baked in.
Tape: BTC $82,840 (+1.0%), ETH $2,447 (+1.6%) — context only, no causation.
If the treasury premium is the product, how many near-17% preferreds can the model absorb before the math eats it? NFA. DYOR.
$BTC #Bitcoin #CryptoNews #CorporateTreasury #DAT
The Nasdaq-listed treasury firm closed a $630M preferred-share offering Tuesday, upsized from 5M to 7M shares. The SATS preferred pays 15% a year on a $100 stated value — but priced at $90, the effective yield is ~16.7%, which Bloomberg says approaches distressed-debt returns. The prospectus sets aside $157.5M to cover the first 18 months of payouts, with dividends — if declared — landing every business day from Nov 9.
Meanwhile Bloomberg reports Strategy's 12%-yielding STRC preferred hasn't been issued since June, and the firm is now eyeing daily dividends plus more common-stock sales to keep buying bitcoin.
The machine still works — it just costs nearly 17% now. When the funding vehicle yields like distressed debt, every future bitcoin buy carries a higher hurdle rate baked in.
Tape: BTC $82,840 (+1.0%), ETH $2,447 (+1.6%) — context only, no causation.
If the treasury premium is the product, how many near-17% preferreds can the model absorb before the math eats it? NFA. DYOR.
$BTC #Bitcoin #CryptoNews #CorporateTreasury #DAT