1 month ago
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Key Takeaways
- STRC AUM: $8.5B in nine months, 25x more liquid than next largest preferred.
- Yield: 11.5% tax-deferred, tax equivalent 24% in New York, 18% in Miami.
- February demand collapse: $500M to $80M during Bitcoin drawdown, 84% decline.
- Sharpe ratio: 2.7, versus NVIDIA at 1.89, S&P below 1.0, money markets negative.
- Shelf registration: $21B, 42x larger than any prior credit instrument registration.
The Engineering Behind 11.5%
Saylor opened his presentation with the theoretical foundation before presenting a single number. Bitcoin has returned 38% annually over the past five years. Gold approximately 8%. Real estate 6%. Money markets 3%. The yield ceiling of any asset-backed credit instrument is determined by the return of the underlying asset, and he stated the constraint directly from the stage: “You can’t create a credit instrument that pays a dividend high...
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