{"text":[[{"start":8.1,"text":"Crypto companies whose business model is to stock up on crypto tokens are turning to a novel type of risky equity product, as they seek to tap new investors to raise money at a time when their share prices are floundering. "}],[{"start":20.549999999999997,"text":"The so-called crypto treasury craze swept financial markets last year as hundreds of companies globally rushed to buy bitcoin and other tokens, inspired by US billionaire Michael Saylor’s company Strategy, the world’s biggest corporate holder of bitcoin. "}],[{"start":35.199999999999996,"text":"Many companies’ share prices initially soared but most have since collapsed as investor sentiment has soured and crypto prices entered a downturn. "}],[{"start":45,"text":"Several bitcoin holding companies are now turning to so-called digital credit, a term coined by Saylor that refers to a type of perpetual preferred stock that Strategy has called Stretch. It blends the features of debt and equity, giving investors steady, high coupon payments in perpetuity but with no potential upside related to the stock price."}],[{"start":67.15,"text":"Holders of Stretch receive annual dividends of 11.5 per cent paid monthly, while Strategy uses the proceeds of selling Stretch to buy more bitcoin. Since it was listed about 10 months ago, $10.5bn has flowed into the product."}],[{"start":82.75,"text":"Strategy is proposing to change its schedule so that investors get paid twice monthly. Money to fund the dividends comes from further capital raising, a model that has raised questions about its sustainability. "}],[{"start":null,"text":"
"}],[{"start":94.8,"text":"Other crypto treasury companies plan to follow in Saylor’s footsteps, viewing such instruments as a way to entice investors who are more comfortable getting a large, fixed return rather than directly holding volatile shares or bitcoin. "}],[{"start":108.3,"text":"US-listed Strive Asset Management, co-founded by Donald Trump supporter Vivek Ramaswamy, operates a similar product that will pay investors 13 per cent annual interest in daily instalments from mid-June. "}],[{"start":120.85,"text":"“What Strategy pioneered and then Strive has adopted is probably the most significant development in bitcoin capital strategies ever,” said Andrew Webley, chief executive of Smarter Web Company, a web design business that became a crypto treasury company when it listed in April 2025."}],[{"start":138.9,"text":"“It’s the greatest invention ever,” Webley told the FT in Bristol, as he hosted a UK bitcoin treasury “unconference” on Friday. "}],[{"start":146.9,"text":"The Smarter Web Company is considering soon listing its own version of digital credit in London, according to people familiar with the matter. The company declined to comment. "}],[{"start":157.05,"text":"Digital credit “is our full focus”, said Alexandre Laizet, director of bitcoin strategy at Paris-listed Capital B. “We want to do it right and we want to do it as soon as possible.” "}],[{"start":168.35000000000002,"text":"“The best way to maximise bitcoin per share . . . is to deploy the Strategy playbook at European scale,” he said, adding that some investors who had bought into Strategy’s Stretch instrument “are interested in what can be done with other companies” — even at a smaller scale. "}],[{"start":184.50000000000003,"text":"Shares in crypto treasury companies have collapsed since last year’s mania, as investors worry about an oversaturated market and struggling digital token prices. The price of bitcoin has fallen 32 per cent over the past year, while Strategy, The Smarter Web Company and Capital B’s shares are down 60, 30 and 83 per cent respectively over the same period. "}],[{"start":207.45000000000002,"text":"Other crypto treasury companies have been forced to sell their crypto holdings and return to their original business models. "}],[{"start":222.4,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780144102_5705.mp3"}