Video coming soon
About This Episode
The crew is back with analysis of $STRD in real time. Has Bitcoin peaked for this cycle? What should the Bitcoin interest rate be? All this and more with.
In This Episode
- STRD Announcement Reaction
- Has Bitcoin Peaked for this Cycle?
- James Wynn’s Wild Ride
- What Should the Bitcoin Interest Rate Be?
Episode Summary
Key Themes: STRD launch; BTC credit yield curve; preferred relative value; ATM shift; Bitcoin-backed lending.
STRD Adds a New Layer to Strategy’s Capital Stack
Strategy launched STRD, a new perpetual preferred that sits below STRF and STRK in the capital stack and offers a higher yield in exchange for more risk. Matt framed it as the “high yield” or “junk grade” instrument in Strategy’s growing Bitcoin-backed credit stack.
Strategy Is Building a Full BTC Credit Yield Curve
Strategy is not issuing one-off securities—it’s building out a full Bitcoin credit curve. Jeff said each preferred now targets a different investor risk appetite, and the broader goal is to let the market allocate across multiple flavors of Bitcoin-backed income.
Relative Value Between the Preferreds
Jeff argued the spread between STRF and STRD looked too tight given how much more senior STRF is in the structure. Matt agreed the market will increasingly trade these products on relative value, with investors rotating depending on pricing, yield and position in the stack.
Yield Hunger Should Pull Capital In
Matt said one reason these products may work well is that the world is starved for yield. Compared with preferred ETFs and high-yield bond ETFs, Strategy’s products offer meaningfully higher income, which should attract both retail and institutional attention as the market gets more comfortable with the structure.
The ATM Is Shifting Away From Common Stock
Another major point was Strategy’s growing use of STRK and STRF ATMs instead of relying entirely on MSTR common equity to raise capital. Ben said the market has wanted this shift for a long time, since preferred issuance is more accretive and creates less pressure on common shareholders than the common stock ATM.
Preferred Markets Could Scale Fast
Jeff and Ben argued that preferred markets are still early and could become larger over time, similar to how Strategy’s convertible issuance scaled up. Their view was that Strategy may eventually raise billions through preferreds once the market understands them.
Leverage Is Growing, but More Productively
The group pushed back on the idea that Bitcoin treasury leverage is dangerously stretched. Jeff estimated that the broader Bitcoin treasury ecosystem is still only modestly levered, while Matt said Strategy is actually becoming harder to break as it adds more funding tools and more flexibility across different market environments.
Bitcoin Lending Is Starting to Mature
The group touched on the emerging Bitcoin-backed loan market, with Ben saying falling lending rates could become a major catalyst for adoption. As lenders compete and underwriting becomes easier, Bitcoin should become more attractive both as corporate collateral and as a personal reserve asset.
Main Takeaway: STRD is the next step in Strategy’s effort to build a full Bitcoin-backed credit market. As the stack expands, Strategy gains more ways to raise capital, more flexibility across market cycles and a stronger long-term engine for accumulating Bitcoin.