Blog & Insights
Educational articles on preferred equity, dividend income, and the assets we track.
Working Backwards: Inside Strategy's Reverse Play to Save STRC
STRC touched $71.25 on 26 June, nearly 29% below par. Six weeks on it's back around $94 — not because the original flywheel restarted, but because Strategy is running it backwards: selling Bitcoin to buy back STRC instead of selling STRC to buy Bitcoin. Here's how that retrofit works and whether it holds.
Strategy Transforms
STRC fell from par to the low $70s in five weeks — the 'never sell' promise broken, the ATM flywheel seized. Then Strategy announced its Digital Credit Capital Framework: a ring-fenced reserve, a Bitcoin monetisation programme, a 12% rate and buybacks. Here's what it says.
A Storm in a Teacup
On Thursday's triple-witching session STRC fell to a record low and SATA broke par — then both clawed most of it back. Here is what actually happened, why Strive and Strategy responded so differently, and what STRC's own prospectus warned all along.
Two Roads to a Bitcoin Bank: How Metaplanet's Model Differs from Strategy's
Metaplanet looks like another Strategy tribute act — big Bitcoin pile, dividend-paying preferred shares. But last week it bought a Japanese brokerage outright, which tells you it's building something different: a Bitcoin bank that sells direct to Japanese savers.
STRC Goes Semi-Monthly and SATA Goes Daily: What Changes and When
Two dividend changes land this month, and neither touches what you actually earn. STRC moves to twice-monthly payments after the 8 June vote (first new payment 15 July); SATA switches to daily from 16 June. Here's what changes, what doesn't, and the dates to watch.
BMNP vs STRC and SATA: The Ethereum-Backed Alternative Explained
Rank them by headline rate — SATA 13%, STRC 11.50%, BMNP 9.50% — and BMNP looks like the loser. It isn't that simple: it's backed by Ethereum, not Bitcoin, and pays from staking rewards rather than a Bitcoin balance sheet. Here's how all three really compare.
How BMNP's Dividend Rate Is Set: Fixed Income, Weekly Payments, and Ethereum Staking
BMNP is the odd one out — not a Bitcoin play but an Ethereum one, funded by staking rewards from the largest corporate ETH holder around. Its 9.50% rate is fixed, paid weekly, and anchored by a redemption ladder instead of a monthly reset. Here's how it all works.
How STRC's Dividend Rate Is Set: The VWAP Mechanism Explained
STRC has raised its rate seven times since IPO — 9% to 11.50% — then stopped. It isn't monthly guesswork: the rate follows a published rulebook tied to a five-day average price against $100 par. Here's how the mechanism works, and why it's behaved like a thermostat.
How SATA's Dividend Rate Is Set — And Why It Differs from STRC
SATA and STRC both nudge their rate monthly to hold the price near $100 par — but STRC follows a published rulebook and SATA follows a board's judgement. Strive's prospectus is unusually blunt about that discretion. Here's how SATA's rate is actually set, and what the filings say.
Strategy's Capital Structure: From Senior Debt to Common Stock — and Where STRC Fits
STRC pays 11.5% — but where does it actually sit at Strategy? Second from the top of the preferred tier: below $6.7bn of convertible debt and STRF, above STRE, STRK, STRD and MSTR common. Here's the full stack, top to bottom, and why that seat sets the yield.
Strive's Capital Structure: What Debt-Free Means for SATA
Strive cleared the last of its inherited debt in early 2026, which leaves SATA sitting at the very top of the stack with no creditor ahead of it. Here's why that — plus an 18-month cash reserve — is the part of SATA I find most reassuring.
How SATA Works: Income Backed by Bitcoin and Cash Reserves
SATA is Strive's preferred equity instrument paying 13% per year — one of the highest yields available in listed preferred equity. Here's how it's structured, what backs the dividend, and why SATA is moving to daily payments from June 2026.
Monthly vs Daily Dividends: Does the Frequency Actually Matter?
Most income assets pay dividends quarterly or monthly. SATA is switching to daily payments from June 2026. But does payment frequency actually make a meaningful difference to real-world returns? The answer depends on what you do with the income.
Reinvesting Dividends: How Compounding Works with STRC and SATA
Taking your monthly dividends as cash is one way to use STRC and SATA. Reinvesting them is another — and over time the difference in outcome is dramatic. Here is how compounding works and how the Growth Projector shows you the numbers for your own scenario.
How to Use the Growth Projector to Model Your Income Portfolio
The Growth Projector lets you enter an investment amount, set a yield and time horizon, and toggle reinvestment — then shows projected value and total income over time. Here is how to use it effectively and what the numbers actually mean.
STRC vs SATA: Comparing Two Preferred Income Assets
SATA pays 13%, STRC pays 11.5% — so why hold the lower one? Because the 1.5-point gap buys two different instruments: different issuers, different backing, and different machinery keeping each near par. How I weigh one against the other.
What Is Effective Yield and Why It Matters for Income Investors
Two people buy the same stock at different prices and earn different returns on the identical dividend. That gap — effective yield — is the first number I check on any income instrument, and it's almost never the rate in the headline.
Bitcoin Treasury Companies and Why They Issue Preferred Equity
Bitcoin doesn't pay a dividend — so why do the companies hoarding it pay income investors 11.5% to 13%? The logic of the Bitcoin-treasury model, why preferred equity like STRC and SATA exists, and what actually backs the dividend.
How STRC Works: Strategy's Perpetual Preferred Stock Explained
STRC is a perpetual preferred stock issued by Strategy — the world's largest corporate Bitcoin holder. Here's how the instrument is structured, what backs the dividend, and how the adjustable-rate mechanism works.
What Is Preferred Stock? A Basic Guide
Strategy raised $2.5bn from a single preferred-stock IPO — so what exactly is preferred stock? The basic framework I use to size up STRC and SATA, from par and priority to cumulative dividends and effective yield.
Important Disclaimer
Digital Credit Yield is not a financial advisor. All content is provided for educational and research purposes only. Nothing on this site constitutes financial advice, investment advice, or a solicitation to buy or sell any financial instrument. Always consult a qualified financial adviser before making investment decisions.