Update
Strive’s Bitcoin-backed Credit Instruments Could Absorb Volatility
Strive’s chief risk officer, Jeff Walton, argues that the company’s Bitcoin-backed credit instruments can absorb Bitcoin’s downside volatility and dampen future price swings. These instruments, called SATA and SATS, are designed to pay steady income while the company’s common stock carries most of the price risk. Strive raised nearly $700 million from an oversubscribed SATS offering, and the company holds between 32,773 and 36,800 Bitcoin as collateral for these securities.