CHAIN PULSE
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Pref vs BTC

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In plain English

Preferred shares pay a coupon. Yield is coupon divided by the preferred’s market price. Compare that cost of capital to bitcoin’s trailing 1-year return and to Strategy’s hurdle rate.

Issuing a 10% preferred to buy bitcoin is only a good deal if you expect bitcoin (and the issuance flywheel) to clear that hurdle. Coupons are a cash flow; they are not also subtracted as a present value inside NAV (that would double-count par).

Math and metrics

Preferred quotes from the MSTR snapshot / live pulse. BTC 1y from series.btcPrice. Hurdle from Strategy bitcoinKpis. STRC is variable.

yield = annualDiv / price. BTC_1y = BTC_now/BTC_365d − 1.