Digital Credit Strategy

At launch, sUSDat's digital credit exposure is 100% allocated to STRC, Strategy's preferred equity instrument. sUSDat yield is directly tied to the yield generated by STRC.

Why STRC

STRC represents the first short-term, high-yield credit instrument built on a Bitcoin. It is issued by Strategy, the largest corporate holder of Bitcoin, and pays a monthly dividend. This makes it a predictable, income-generating instrument backed by a deep and growing Bitcoin reserve.

For Saturn, STRC is the ideal starting point for digital credit exposure. It offers high yield, monthly repricing, and a liquidation preference that provides downside structure.

Structure and Mechanics

STRC is structured as perpetual preferred equity, backed by the Bitcoin held on Strategy's balance sheet.

  • Dividend Rate: Variable, benchmarked against the 30-day VWAP of STRC price and the one-month SOFR rate

  • Payment Period: Monthly

  • Liquidation Preference: $100 per share plus accrued dividends

  • Liquidity: Tradeable on the Nasdaq

Dividend Adjustment

Dividends are reviewed monthly. Strategy adjusts the rate to keep STRC trading near par ($99 to $101).

STRC Monthly VWAP
Dividend Adjustment

< 95

+50 bps or more

95 – 98.99

+25 bps or more

99 – 100.99

±25 bps discretionary

≥ 101

–25 bps or more

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