I agree with your top four, the clearest pure play picks at the moment, and the diminishing allocation sizes. Different jurisdictions as well.
Strategy and Saylor are in a league of their own. The prefs are, if demand for them is sufficient, a way for Strategy to safely increase their leverage ratio significantly - from 20% to 50% or more. Longer term performance of #MSTR if they manage to maintain the higher ratio will likely be unprecedented.
I wonder if there’s been any discussion on the moat the size of the treasury gives BTCTC’s? To issue preferred equity? And how long can we expect demand for them to grow? How much demand is needed for MSTR to maintain the target leverage ratio - as it keeps getting harder the higher bitcoin goes, and maybe as the treasury grows? Just as the ATM runs into diminishing percentage returns, where are the capacity constraints for the prefs?
If demand for such prefs is constrained, then I could see the senior prefs of large BTCTC’s being more credit worthy as they are more over collateralised - which should give them a lower cost of capital. The actual moat advantage seems to have many variables - like varying demand for the different prefs along the seniority stack, saturation, etc.
Saylor and Mallers have my trust, and have had it since before BTCTC’s.
NAKA not so much - issuing equity to buy stocks of other BTCTC’s is one step too far! It’s like a crazy dilutive actively managed fund Frankenstein. 😂
LQWD claims to use their treasury to provide lightning liquidity and earn 24% btc denominated yield, I think they’re unique in that. The smaller names may be interesting trades (minuscule allocs) if we get a BTCTC mania sometime, but there are so many now. Looks like we’re seeing the beginnings of it.
