Frequently Asked Questions
Straight answers to the questions readers ask most about STRC, SATA, BMNP and CHAD.
How do I buy STRC, SATA, BMNP or CHAD?
STRC, SATA and CHAD trade on the Nasdaq and BMNP on the NYSE, all like ordinary shares — under their own tickers "STRC", "SATA", "BMNP" and "CHAD". Search the ticker in any major brokerage account (Fidelity, Schwab, Interactive Brokers, eToro and most others carry them), choose the number of shares, and place the order during US market hours. There is no minimum investment beyond the price of one share, and no special account type is needed.
Are the dividends guaranteed?
No. Like all preferred stock dividends, each payment must be declared by the issuer’s board of directors before it is paid. Strategy, Strive, Bitmine and DeFi Development Corp. all have strong incentives to maintain payments — a missed dividend would severely damage their ability to raise capital — but a dividend is a corporate decision, not a contractual debt obligation like a bond coupon. Always read the issuer’s prospectus for the exact terms.
Why does the price stay close to par?
STRC and SATA are designed to trade near their $100 par value: the issuers review the dividend rate each month, nudging it up if the price drifts below par to attract buyers, or down if it trades above. In practice, Strategy has held STRC’s rate flat at 12.00% since July 2026 rather than following its own published VWAP bands mechanically — a discretionary call to wait for the price to recover, not an automatic monthly adjustment. CHAD works the same way in principle but against a $10 par value instead, with management reviewing the rate monthly or more often. BMNP works differently — its 9.50% rate is fixed, so instead of a moving rate it leans on a redemption premium (the company can buy shares back above par in the early years) to keep the price from drifting too far. Either way, prices tend to move in cents rather than dollars — and the effective yield you lock in depends on the price you pay relative to that instrument’s own par value.
What is the difference between the annual rate and the effective yield?
The annual rate (for example 12.00% for STRC) is set against the $100 par value. The effective yield is what you actually earn based on the price you pay. Buy at $99 and your effective yield is slightly higher than the stated rate; buy at $101 and it is slightly lower. The live charts on this site track both in real time.
What happens if Bitcoin or Ethereum crashes?
The dividends are paid in cash by the issuing companies, not in crypto — but the issuers’ treasuries are crypto, so a severe, sustained fall would shrink the asset base that supports their capital raising. Strategy and Strive hold Bitcoin, and Strive also keeps a cash reserve covering more than 18 months of SATA dividends as a buffer. Bitmine, the company behind BMNP, holds Ethereum and funds its dividend largely from staking income, so its exposure is to ETH rather than Bitcoin. DeFi Development Corp., behind CHAD, holds Solana instead, and is the newest and smallest of the four treasuries here — a crypto drawdown does not automatically affect the dividend, but it increases the risk around future payments and the share price for all of them.
How are the dividends taxed?
Tax treatment depends on where you live and what account you hold the shares in. In the US, preferred dividends may or may not be "qualified" for the lower dividend tax rate. In the UK, US preferred dividends are typically subject to a 15% US withholding tax (with a W-8BEN filed) and then UK dividend tax rules apply. This site does not provide tax advice — speak to a tax professional about your situation.
Can I lose money on these?
Yes. The price can fall below what you paid — particularly if the issuer’s credit profile weakens, the dividend is reduced or missed, or market interest rates rise sharply. The par-anchoring mechanism is a design goal, not a guarantee. These carry real risk and should be sized accordingly within a portfolio.
Is this site affiliated with Strategy, Strive, Bitmine or DeFi Development Corp.?
No. Digital Credit Yield is an independent research and tracking site. I hold positions in MSTR and ASST (the common stock of Strategy and Strive) but have no relationship with any of the four companies and am not compensated by them. Nothing here is financial advice.
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.