The Hurdle Rate Podcast Episode 34 - The Preferred Strategy is Digital Credit
9 snips
Nov 4, 2025 The discussion kicks off with Strive's IPO announcement and dives into Strategy's Q3 earnings, emphasizing the evolving landscape of Bitcoin-backed credit. The hosts compare Stream’s fixed dividends to other European credit options, while debating its launch potential. They highlight the importance of ROC dividends for tax benefits and retirement planning. Bitcoin is positioned as the gold standard for collateral in crypto-backed credit. Finally, they explore how Strategy's choices could shift market dynamics and enhance capital flexibility.
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Stream Mirrors Proven 10% Preferred
- Strategy launched Stream as a Euro‑denominated preferred with a fixed 10% cumulative dividend to mirror U.S. success.
- They intentionally kept the product simple to build trust and enable faster adoption in a new market.
Build Markets One Step At A Time
- Strategy plans to build a full digital‑credit yield curve one market at a time instead of launching every product everywhere.
- They expect initial pricing to improve as investor familiarity grows after early issuances.
Huge Credit Spread Versus B‑Rated Debt
- Stream yields look extremely attractive versus comparable B‑rated European debt if markets give credit for Bitcoin collateral.
- That implies large potential alpha from perceived credit quality differences.