Daily dividend preferred equity stabilizes digital credit
The guest argued that paying daily dividends on Bitcoin-backed perpetual preferred equity reduces secondary market risk and smooths out trading volume volatility.
The argument
By shifting from monthly to daily payouts, the risk window for secondary market liquidity providers drops significantly, which the guest argued will attract algorithmic traders and prevent typical volume spikes and dry spells around monthly record dates. This structure is designed to achieve a rare combination of high yield, low volatility, and high liquidity.
The thesis, stress-tested
✓ What validates it
- ✓Official launch of daily dividends on June 16
- ✓Observed smoothing of SADA trading volume volatility across the month
- ✓Increased algorithmic trading volume in SADA
▸ Risks discussed
- ▸Pausing of dividend payments (a break-glass scenario) would severely damage investor psychology and the capital flywheel
- ▸Underlying Bitcoin price volatility affects the balance sheet coverage ratio
Hear it yourself
"The team has been working crazy hard and, that's a result of how hard the team's been working. So we've just been continuously pushing the envelope and then watching the leader. Right? Strategies been incredibly successful with STRC, and we we've gotten some really good advice from the strategy team in Saylor on on how to to think about these things, communicate to the market, and, start to establish this credit profile in in the industry. Or is it been breaking? You've been getting some, some attention from outside. Just before we started recording, I was we were talking about the Coffeezilla Show."
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