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DIGY11 plans to allocate 95% of its initial portfolio to Strategy’s STRC preferred shares.
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DIGY11 will provide monthly distributions in Brazilian reais with currency hedging included.
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OranjeBTC estimates annual distributions could reach Brazil’s CDI plus 3% to 5%.
Brazil’s largest Bitcoin treasury firm is taking a new route to bring Bitcoin related income to local investors. OranjeBTC is preparing the DIGY11 ETF, which plans to put 95% of its portfolio into Strategy’s STRC preferred shares.
Meanwhile this will turn a U.S. Bitcoin treasury strategy into a Brazilian real denominated income product.
DIGY11 Plans 95% STRC Allocation
The key part of the plan is its portfolio. About 95% of the initial allocation will go into Strategy’s STRC, while the remaining portion will mainly target Strive’s SATA.
Unlike a traditional Bitcoin ETF, DIGY11 will not buy Bitcoin directly. Instead, it will invest in preferred shares designed to provide recurring income while gaining exposure to companies with large Bitcoin holdings.
The ETF will trade in Brazilian reais, offer daily liquidity and include currency hedging to reduce the impact of movements between the U.S. dollar and Brazilian real.
Guilherme Gomes, founder and CEO of OranjeBTC said that,
“We developed DIGY11 based on the revolution that Strategy and Strive are promoting in the U.S. capital markets.”
ETF Targets CDI Plus 3% to 5% Income
DIGY11 is designed around monthly distributions in Brazilian reais. Based on current market conditions, OranjeBTC estimates annual distributions could equal Brazil’s CDI rate plus roughly 3% to 5%, after fund costs and subject to market conditions.
Guiga Ferreira, CFO of OranjeBTC, said that,
“Investors will not need to open an account abroad, carry out foreign exchange transactions, or individually select each asset.”
The fund will track the MarketVector Bitcoin Treasury Preferred Equity BRL Hedged Index. Its selection rules consider factors such as liquidity, Bitcoin holdings, corporate reserves, leverage, and past distribution history.
Why Strategy’s STRC Is Getting 95% Allocation
The large STRC allocation shows the growing size of Strategy’s preferred share market. STRC has surpassed $10 billion in notional value, while its average daily trading volume has reached around $160 million over the past 30 days.
Strategy founder Michael Saylor welcomed the move, saying, “Digital Credit is a new asset class,” and that seeing it reach Latin American investors through a local regulated product represents the type of expansion STRC was designed to support.
The ETF also aims to benefit from the balance sheets behind these companies. OranjeBTC estimates Strategy and Strive together have around $2.80 in cash and $28 in Bitcoin for every $1 distributed annually by the two companies.
If DIGY11 launches as planned, Brazilian investors will gain a local-market product that combines U.S. preferred stock income, Bitcoin treasury exposure and currency hedging in a single ETF traded in Brazilian reais.
