Bitcoin Magazine used the debut episode of The Allocators Edge to spotlight Bitcoin-backed digital credit, with UXTO’s Dan Hillery arguing that the financialization layer built on top of Bitcoin could eventually rival the network itself. The program said the market was barely in existence two years ago and now stands at roughly $16 billion, compared with Bitcoin’s cited $1.5 trillion market capitalization.
What Hillery covered in the episode
In the episode, Hillery explained how variable-rate preferred securities such as STRC and SATA are priced. He also said buybacks help keep those instruments anchored near their $100 par value.
The discussion also drew a distinction between digital credit risk and digital equity risk. Hillery then walked through the structured credit fund he is building, including its senior and junior tranches.
Episode rundown
- 0:00 — Digital credit is the fastest-growing part of Bitcoin’s capital structure
- 1:18 — Why STRC’s variable-rate design has no precedent in market history
- 2:59 — What flat or falling Bitcoin prices mean for Strategy and Strive
- 4:17 — Short-duration Bitcoin-backed notes and the next five years of products
- 5:45 — The biggest misconceptions investors have about preferred securities
- 6:58 — How buybacks and capital markets activity anchor STRC near $100 par
- 8:09 — Why major fund classes still cannot touch digital credit today
- 9:10 — Inside the UXTO credit fund: senior and junior tranche structure
- 10:35 — Where the leverage comes from and how volatility risk gets transferred
- 11:50 — Liquidity, redemptions, and digital credit in a 60/40 portfolio
Disclosures and disclaimer
The post said the video is for informational purposes only and does not constitute an offer to sell securities or a solicitation of an offer to buy them. It also said past performance is not indicative of future results and that investments in digital assets involve significant risk, including possible loss of capital.
It disclosed that both UTXO Management and BTC Inc., the producer of BMTV, are owned by Nakamoto Inc. (NASDAQ: NAKA). The disclaimer added that the views expressed in the show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or affiliated entities.
The post also said the material is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. It added that nothing in the show constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or financial instruments, and that viewers should consult their own advisers before making financial or business decisions.
The article first appeared on Bitcoin Magazine and was written by Patrick Green.