Bitcoin's financing cost climbed almost twice as fast as the coin itself, even while $BTC sits about 34% under its $126K peak.
That's the part a lot of treasury buyers skip. You can get the Bitcoin direction right and still lose if the company stacking it has to pay 15% a year just to keep buying.
Strive wants $500M through a new preferred paying 15% annually, all so it can add more Bitcoin. Go back to 2025 and Strategy's first preferreds launched around 8-10%. Strive's $SATA is already at 13%, and the newer $SATS deal is asking a fixed 15%. Over roughly a year, the price of funding a Bitcoin treasury rose nearly twice as fast as Bitcoin did.
Set that next to a 10-year Treasury around 5.3% and the gap gets uncomfortable. This isn't free leverage. The coupon keeps running whether Bitcoin chops or drops, and the shares underneath have to carry that cost until the stack is worth more than the financing. Cheap coins plus expensive money is how these trades quietly stop working.
Where do you think this preferred-yield climb goes from here?
#Bitcoin #BTC #Crypto
That's the part a lot of treasury buyers skip. You can get the Bitcoin direction right and still lose if the company stacking it has to pay 15% a year just to keep buying.
Strive wants $500M through a new preferred paying 15% annually, all so it can add more Bitcoin. Go back to 2025 and Strategy's first preferreds launched around 8-10%. Strive's $SATA is already at 13%, and the newer $SATS deal is asking a fixed 15%. Over roughly a year, the price of funding a Bitcoin treasury rose nearly twice as fast as Bitcoin did.
Set that next to a 10-year Treasury around 5.3% and the gap gets uncomfortable. This isn't free leverage. The coupon keeps running whether Bitcoin chops or drops, and the shares underneath have to carry that cost until the stack is worth more than the financing. Cheap coins plus expensive money is how these trades quietly stop working.
Where do you think this preferred-yield climb goes from here?
#Bitcoin #BTC #Crypto