How Far Can Bitcoin Fall Before Digital Credit Breaks? The Floor Under $SATS, $SATA and Strategy’s Preferreds
“13% paid daily” is what people see first. Understandable. It’s a great headline. It’s also the least interesting thing about the security.
What You Are Actually Buying
What buyers of $SATA and $SATS are actually getting: a $100 preferred share in a company whose balance sheet is bitcoin. The coins back the claim, but not as collateral. The dividend comes from a reserve and new issuance.
That last sentence matters. The coupon comes from the capital markets, not from selling the bitcoin. Which brings us to the only question that matters for a credit investor.
How Far Can Bitcoin Fall Before Each Series Is Impaired?
Net of cash, after every claim ahead of it, here is the bitcoin price at which each digital credit series stops being fully covered:
- $SATS: $36,000 (−55%)
- $SATA: $19,700 (−75%)
- $STRD: $17,700 (−78%)
- $STRF / $STRC / $STRE: $14,400 (−82%)
Put differently: $SATS stays fully backed until bitcoin falls roughly 55%. The rest have even more room underneath them.
These numbers come live from the filings, and the page updates itself: the Digital Credit Report at Hydra Wealth Advisors.
Compare That to the “Safe” Option
13% and 15%, paid every business day, from a company whose only asset is bitcoin. That is $SATA and $SATS. Digital credit.
Meanwhile, the 10-year Treasury pays 5.05%. Money supply has grown 6.7% a year since 1959. Do that math and the bond loses ground in real terms. The “risk-free” asset is risk-free in the same way a slow leak is technically not a flood.
The preferreds clear that line by 6 to 9 points.
That Is the Trade
The coupon comes from the capital markets, not the bitcoin, and the coverage tells you exactly how much drawdown each series can absorb before it’s impaired. You don’t have to guess. You have to read.
The math, live, every day: hydrawealthadvisors.com/research.
Not financial advice. Do your own research.
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2113035452496466328
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2115150433882972317
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2115960671666114777
