Any "equity" is risky equity, this is a stupid tradfi journo framing.
And preferred shares are, by freakin construction, less "risky" than the common stock equity themselves... higher in the capital stack, capped upside in exchange for less risk. (Any competent editor would have caught that.)
And no, idiot, the treasury company craze last year was called PAPER BITCOIN SUMMER (#1464278, #1217842). Get your terms correct.
Several bitcoin holding companies are now turning to so-called digital credit, a term coined by Saylor that refers to a type of perpetual preferred stock that Strategy has called Stretch. It blends the features of debt and equity, giving investors steady, high coupon payments in perpetuity but with no potential upside related to the stock price.
Also, don't mention the P-word... dooooon't mention it!!
Strategy is proposing to change its schedule so that investors get paid twice monthly. Money to fund the dividends comes from further capital raising, a model that has raised questions about its sustainability.
And obligatory SATA mention:
US-listed Strive Asset Management, co-founded by Donald Trump supporter Vivek Ramaswamy, operates a similar product that will pay investors 13 per cent annual interest in daily instalments from mid-June.
It's kind of pathetic that a) insider Cantillon scums blow smoke up each other's ass, b) prominent Bitcoin personalities pride themselves not with building a new/better/smarter financial system but competing over how to better financialize this outside money. #1493902, #1494722, #1497308
I'm, uh, disillusioned by this shit.
Will the real Bitcoiners please stand up?
archive: https://archive.md/cVooR
We can’t really be surprised at how much energy is going into trying to engineer the flywheel.
Magnitudes more energy than what is going into improving Bitcoin as a medium-of-exchange.
Sad but true
Calling something “digital credit” doesn’t magically remove the old questions about leverage, sustainability, and where the yield is actually coming from.
The longer this cycle goes on, the more Bitcoin seems to be splitting into two camps: people building on Bitcoin and people building financial products around Bitcoin.