The Bitcoin Treasuries Podcast with Tim Kotzman Behind Closed Doors: Dan Hillery on Strategy’s STRD
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Jun 4, 2025 In this discussion, Dan Hillery, a seasoned expert on Bitcoin and corporate treasury strategies, dives into Strategy's latest STRD announcement and its implications. He shares key takeaways from the Bitcoin conference in Vegas, emphasizing the unique risk factors Bitcoin treasury companies face. Dan unpacks how STRD dividends function and explores innovative financial strategies using Bitcoin. Lastly, he discusses cash flow tactics during Bitcoin's volatility and the relevance of leverage ratios in this dynamic market.
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STRD Preferred Equity Explained
- STRD is a 10% annual yield perpetual preferred equity, less secured but overcollateralized by Bitcoin.
- Its non-cumulative dividends allow Strategy to reduce risk while reinforcing leverage and credit quality.
STRD Enables Buybacks Below mNAV
- Strategy can issue STRD to raise cash without harming higher-tier debt credit quality.
- They can use STRD proceeds to buy back common shares below mNAV, capturing Bitcoin upside for shareholders.
Leverage Strategy by Seniority
- Maintain 20-30% debt ratio for senior instruments (convertibles, Strife, Strike) against Bitcoin.
- STRD can extend debt ratio to 40% as it is junior and less risky, protecting senior instrument creditworthiness.