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Digital Credit Treasury Calculator

See how digital credit could increase treasury income

Compare treasury income from digital credit and T-bills based on your treasury size, allocation, yield assumptions, and time horizon.

Created by Joe Burnett Adapted for True North View live digital credit yields →

Assumptions

Cash and cash equivalents

%

50% T-bills

%

Annual yield

%

Annual yield

Additional annual income vs 100% T-bills

+$4.15M

Total annual income

$7.85M

Monthly additional income

+$345,833

Effective treasury yield

7.85%

Income multiple vs T-bills

2.12x

Cumulative income (3Y)

$26.00M

Cumulative difference (3Y)

+$14.49M

Annual Income Comparison

Cumulative Income Over Time

Important Disclosure

Each of these securities has its own risks and benefits. A complete analysis should include a look at the risk profile, liquidity, and structural features of each security. Treasury Bills are backed by the U.S. Government, which has the power to tax and print money to repay debts. Digital credit is a novel asset class subject to unique risks and uncertainties, as profiled in the prospectus of each digital credit security.

Methodology & Attribution

How it works: The calculator splits your treasury principal between digital credit and T-bills at the allocation you choose, then computes annual income under constant yields. The blended return is compared against a 100% T-bill baseline to show incremental income.

Compounding: When "Reinvest income" is enabled, annual income is added back to the balance each year (annual compounding). When disabled, income is calculated on the original principal each year (simple interest).

What it does NOT model: Credit risk, price volatility, liquidity differences, fees, taxes, default scenarios, or yield changes over time. This is a pure income-comparison tool, not a risk model.

Attribution: Originally created by Joe Burnett. Adapted for True North with dark theme, brand integration, and digital credit context.

This calculator is for illustrative and educational purposes only. It does not constitute investment, legal, tax, or accounting advice. Past performance is not indicative of future results. Treasury Bills are backed by the U.S. Government. Digital credit securities carry unique risks — review each instrument's prospectus before investing.

What Is the Digital Credit Treasury Calculator?

The Digital Credit Treasury Calculator is a free, interactive tool that helps corporate treasurers, CFOs, and individual investors model how allocating a portion of their treasury to digital credit instruments could affect total income compared to holding 100% T-bills.

Digital credit instruments like STRC, STRK, STRD, and SATA are Bitcoin-backed preferred equity securities that aim to deliver higher yields than traditional short-duration fixed-income products.

How to Use the Calculator

  1. Enter your total treasury size (cash and cash equivalents)
  2. Set the allocation percentage between digital credit and T-bills
  3. Adjust the annual yield assumptions for each instrument
  4. Choose a time horizon (1, 3, 5, or 10 years)
  5. Toggle reinvestment to compare simple vs. compound returns

Results update in real time as you change any input. The primary KPI — additional annual income vs. 100% T-bills — shows the incremental value of the digital credit allocation at a glance.

Why Compare Digital Credit to T-bills?

Treasury Bills are the traditional benchmark for short-duration, low-risk treasury management. They are backed by the full faith and credit of the U.S. Government and currently yield around 3-5% annually. Digital credit instruments aim to offer significantly higher yields — often 8-12%+ — while being backed by Bitcoin held on corporate balance sheets.

The comparison is relevant because both serve the same treasury function: generating income on idle capital. The calculator helps quantify the income difference under your assumptions so you can evaluate the trade-off between traditional government-backed safety and higher-yielding digital credit. For current market yields across all six instruments, see the Digital Credit Dashboard.

Frequently Asked Questions

What is digital credit?
Digital credit refers to a class of Bitcoin-backed preferred equity instruments — such as STRC, STRK, STRD, and SATA — that offer periodic income while being collateralized by Bitcoin on a corporate balance sheet. These instruments aim to provide higher yields than traditional fixed-income products with transparent, publicly traded structures.
How does this calculator work?
The calculator splits a treasury into two allocations — digital credit and T-bills — at your chosen ratio, then computes annual income for each allocation based on the yields you set. It compares this blended return against a 100% T-bill baseline to show the additional income generated. When reinvestment is enabled, income compounds annually.
What yield should I use for digital credit?
The default 12% represents a mid-range assumption based on annualized yields observed across digital credit instruments such as STRC, STRK, and SATA. Actual yields vary by instrument, market conditions, and declared dividend rate. Check the True North Digital Credit Dashboard for current live yields.
Does this calculator account for risk?
No. This is a pure income-comparison tool that assumes constant yields over the selected period. It does not model credit risk, price volatility, liquidity risk, or the structural differences between U.S. government-backed T-bills and corporate digital credit securities. A complete analysis should include these factors.
What does 'reinvest income' mean?
When enabled, annual income is added back to the principal and earns additional returns in subsequent years (annual compounding). When disabled, income is calculated on the original principal each year (simple interest). Compounding significantly increases cumulative returns over longer time horizons.
Who created this calculator?
The Digital Credit Treasury Calculator was originally created by Joe Burnett and adapted for True North by the True North team. The calculation methodology is fully transparent: constant-yield blended allocation with optional annual compounding.

True North is for informational and educational purposes only. Nothing presented should be considered investment advice or an offer of any security or investment product. Consult your own investment and tax advisors. Full disclaimer.

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