Perpetual Preferred Equity Against Bitcoin: Required Coverage Across Observed Drawdowns

Jackson Fairbanks

MPRA Paper from University Library of Munich, Germany

Abstract: Perpetual preferred equity issued against a Bitcoin reserve produces a forward-coverage problem. The measure of forward solvency is the Bitcoin Coverage Ratio (BCR): BTC reserve value over annual dividend obligation, in years of forward coverage. BCR collapses the preferred-to-reserve ratio and dividend rate into a single coverage statistic. Primary failure occurs at BCR

Keywords: Bitcoin Coverage Ratio (BCR); Perpetual Preferred Equity; Digital Credit; Bitcoin Treasury; Bitcoin; Credit Risk; Solvency; Coverage Ratio; Drawdown; Backtesting (search for similar items in EconPapers)
JEL-codes: G01 G23 G32 G33 (search for similar items in EconPapers)
Date: 2026-07-29
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/130390/1/perpetual ... equired-coverage.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:130390

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().