The Coupon on the Reserve | How the Preferred Dividend Made Strategy a Forced Seller

This is the sequel to a question we raised in The Reserve That Sells Itself. There, the argument was that bitcoin fails the test of a reserve asset because its holders are structurally disposed to sell under stress.

A perpetual preferred was supposed to let Strategy hold Bitcoin forever. Its coupon did the opposite — it turned the company's reserve into a funding source, and exposed the contradiction sitting at the center of the entire Bitcoin-treasury model. Here we can name the mechanism. In the treasury-company model, the forced seller is not a behavioural tendency or a failure of conviction. It is a line item on the capital structure: the coupon.

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