Bitcoin Digital Asset Trusts (DATs) such as MicroStrategy ($MSTR) are issuing preferred shares, including $STRC and $SATA, with yields ranging from 11% to 12.5%. While these offerings appear attractive, they remain a directional bet on Bitcoin's price movement. The dividends from these shares depend on Bitcoin's appreciation, as there is no native yield.
These investments carry a CCC-rated risk, with an underlying annualized volatility of 50%. Additionally, at-the-money Bitcoin covered calls suggest a potential yield of approximately 33%, outperforming if Bitcoin's price remains stable or rises. Despite these options, many investors still prefer spot Exchange Traded Products (ETPs) for straightforward Bitcoin exposure in brokerage or retirement accounts.
Bitcoin DATs Offer High-Yield Preferred Shares Amid Volatility
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