Been thinking about how you can use your Raw BTC stack to generate an income and turn that income to an amplified BTC weapon using BTC prefs. This is what I came up with so far.
If you have a Bitcoin stack, pristine collateral you can take out a bitcoin loan. Let’s use Coinbase BBL for the example here.
Some rules to manage risk here, no higher than starting LTV of 20%, APR is about 4.33% for BBLs on Coinbase right now.
You can use the funds from your loan at a 1:1 ratio to buy $STRC and $SATA a 50/50 split to get a 12.12% blended yield or however you please. So you now have a biweekly cash flow.
Use the biweekly dividends to make interest only payments so the loan principal does not grow. You can now arbitrage the difference between your loan interest and use the excess 7.79% to buy AMP bitcoin like $MSTR $MPJPY $ASST.
If AMP bitcoin has a crazy run up like $MTPLF in May 2025 you can sell that excess premium and buy Bitcoin, buy a Rolex or just hold for the long term. If Bitcoin drops significantly and $STRC $SATA NAV remains stable just sell your position and repay your loan and remove your risk. Essentially end up with more assets on your balance sheet using your Raw Bitcoin.
Visual below. Let me know what you think.