Strive’s Jeff Walton says Bitcoin-backed credit can absorb volatility

Strive's chief risk officer argues its preferred equity instruments can soak up Bitcoin's downside and dampen future price swings Bitcoin has never been accused of being boring. Strive thinks it can sell investors a version that comes closer. Jeff Walton, chief risk officer at Strive Inc. (NASDAQ: ASST), said the company’s credit instruments can absorb Bitcoin’s downside volatility and dampen future price swings. The pitch arrives as Strive leans into what it calls “digital credit.” These are Bitcoin-backed securities designed to pay steady income while the company’s common stock carries most of the price risk. How Strive’s digital credit works Strive is a Bitcoin treasury company. It holds Bitcoin on its balance sheet and builds financial products on top of that reserve. Its newest products are perpetual preferred equity securities called SATA and SATS. Perpetual means they have no maturity date. Preferred means holders get paid before common shareholders do. According to the research findings, SATA yields approximately 13% and SATS yields approximately 15%. Those payouts are supported by Strive’s Bitcoin holdings as collateral, along with the company’s liquid cash. Walton indicat...