Last night, STRC broke below $90. This morning, some buddies in the group mentioned that funds might be flowing into SATA, which follows a similar model.

$STRC and $SATA are essentially perpetual preferred shares supported by the reserve of $BTC . They don’t fall under traditional bonds/debt but are equity instruments of a preferred nature.

Right now, there are three key differences:

1/ Dividends: SATA at 13%, STRC at 11.5%;

2/ Balance Sheet: SATA is almost debt-free, while STRC includes convertible bonds and more;

3/ Dividend sustainability: SATA has cash to sustain for about 18 months; STRC has around 6 months;

From an anchoring perspective: when STRC is priced at $89, 100/89 × 11.5% ≈ 13%, which is close to SATA, hence STRC is in a reasonable range around $90.

However, it’s important to note that STRC’s dividends are adjustable.

Comparing balance sheets, SATA is cleaner; but in terms of scale, STRC is larger.

Analyzing dividend sustainability, if we only consider cash reserves, SATA is clearly more stable; but if we factor in BTC’s comprehensive coverage ability, both can sustain dividends for decades.

But it’s also clear that STRC urgently needs to play its cards right: increase dividends and boost cash reserves.

This is just an information share and does not constitute any investment advice!

Continuously evolving BitHappy