What Is Digital Credit? Three Layers, One Asset
People ask what “digital credit” even is. As if it were complicated. It isn’t. Three layers, one asset. 💡
🟠 Digital Capital: Bitcoin
Bitcoin, at about $77,700. No yield. No counterparty. The reserve asset. It doesn’t pay you anything, and it doesn’t need anyone’s permission to exist. That’s the point.
📈 Digital Equity: The Treasury Common
The treasury company common stock: $MSTR and $ASST. This is leveraged exposure to bitcoin per share.
- $MSTR: 848,517 BTC, mNAV 1.15x.
- $ASST: 43,000 BTC, about 33,770 sats per share.
Equity is where the volatility lives, in both directions. Ask anyone who held it through the last drawdown.
💳 Digital Credit: The Preferreds
Bitcoin on the balance sheet, income on the ticker. The receipts:
- $STRC: 12.00% rate, 12.1% yield at $99.13, now paid DAILY
- $STRF: 10%, 9.9% yield
- $STRK: 8%, 11.8% yield
- $STRD: 10% non-cumulative, 14.3% yield
- $SATA: 13%, 13.7% yield at $94.86
- $SATS: 15% coupon
And for anyone about to ask “but who pays the dividend?”: Strategy holds $5.07B in cash reserves, 3.4 years of dividends and interest.
Capital, Equity, Credit
Capital is the asset. Equity is the leverage. Credit is the income.
Know which layer you own before the market tests it. 😎
“What’s the Catch?”
Here’s the comparison everyone eventually runs:
- 10-year Treasury: about 4.9%
- High yield: about 8%
- Digital credit: 10–16%
The natural reaction is “what’s the catch?” Fair question. I wrote 95 pages answering it: The Digital Credit Report. There’s a free primer on the same page.
Not financial advice. Do your own research.
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2116992731784581567
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2117000285134651584
