Grain of Salt SF

Preferreds & Amplification

Start with the cash yield a preferred share pays at a given purchase price, then compare fixed claims with resetting amplification at a Bitcoin peak. Your assumptions throughout; modeled mechanics, not stock-price forecasts.

Read the supporting researchBitcoin Treasury Dashboard →
Grain of Salt SF
PREFERREDS & AMPLIFICATION

Preferred Cash Yield Calculator

Same annual dividend. Different purchase price. See how your cash yield changes.

Stated amount · fixed$100
$20$100 stated amount$150
0%On the $100 stated amount25%
Annual dividend per share: $15.00
Annual cash yield at your purchase price
15.00%
Price ÷ stated amount1.00×
Reciprocal yield multiplier1.000×

Price–Yield Curve

Price–Yield CurveAt $100.00 purchase price and 15.00% annual dividend rate on $100, annual cash yield is 15.00%.0%32.5%65%97.5%130%$0$50$100$150Annual Cash Yield (%)Purchase Price ($)

$100.00 purchase → 15.00% annual cash yield

$15.00 ÷ $100.00 × 100 = 15.00%
Annual cash yield = annual dividend per share ÷ purchase price × 100
Assumes dividends are declared and paid at the selected rate. Excludes reinvestment, taxes, fees, and price changes. Cash yield is not a compounded return or yield to maturity. The reciprocal above is a price-to-yield conversion, not capital-structure amplification.
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What if the price changes after I buy?

Your purchase price stays fixed. A different market price changes your position’s value, not the assumed dollar dividend.

$20$150
Annual dividend stays fixed: $15.00 per share
Original purchase price$100.00
Market price now$85.00
Unrealized price gain/loss per share−$15.00−15.00%
Annual cash yield on your purchase price15.00%
Current cash yield for a new buyer17.65%

Illustrative one-year total return

Unrealized price change−$15.00 (−15.00%)
Cash dividend assumed received (one year)+$15.00
Net gain/loss after dividends$0.00
One-year total return0.00%
($85.00 − $100.00 + $15.00) ÷ $100.00 × 100 = 0.00%
The price change excludes dividends. The one-year total return adds one full year of the assumed annual dividend and counts the market value change even if unsold. It is a single one-year scenario, not an annualized return over any other holding period. No reinvestment, taxes or fees. Dividends are not guaranteed and are assumed declared and paid at the selected rate.

$20 is this calculator’s minimum input, not a market price floor.

Grain of Salt SF
PREFERREDS & AMPLIFICATION

Amplification Calculator

Same Bitcoin held. Same senior claims. Only Bitcoin’s price changes.

Illustration: 1 BTC held1 BTC
$0Your assumption · no live price$1M
Type any price, including above $1M; the slider stops at $1M.
0%Senior claims as % of Bitcoin assets90%
−50%0%+200%
Zero is centered: the left half covers declines in 1% steps, the right half gains in 4% steps. The chart axis stays linear.
Selected change: 0.00% (use a minus sign for declines)
Current amplification (senior claims ÷ Bitcoin asset value)
50.00%
50.00% starting → 50.00% current · Current Bitcoin price $100,000.00
Fixed senior claims$50,000.00
Bitcoin asset value (1 BTC)$100,000.00
Residual Bitcoin backing$50,000.00

Amplification vs. Bitcoin Price Change

Amplification vs. Bitcoin Price ChangeStarting amplification 50.00%; after a 0.00% Bitcoin price change, current amplification is 50.00%.−50%0%+50%+100%+150%+200%0%50%100%150%200%100%: zero modeled residual backingNegative residual backingBitcoin Price Change (%)Amplification (% of Bitcoin assets)

0.00% Bitcoin → 50.00% amplification

$50,000.00 fixed claims ÷ $100,000.00 Bitcoin value × 100 = 50.00%
Claims = starting price × starting amplification. Current value = starting price × (1 + change). Current amplification = fixed senior claims ÷ current value of 1 BTC × 100. The starting price scales the dollars, not the ratio. Percentages are of Bitcoin assets, not a return to common shareholders.
Illustration: 1 BTC held, fixed; senior claims fixed in dollars. Your starting price is an assumption, not a live quote. Dashed 100% line: modeled zero residual backing, not a bankruptcy trigger. No issuance, redemption or reset is modeled; not a stock-price prediction.
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Fixed senior claims exclude dividends, expenses, other assets, cash and debt terms. Illustrative mechanics only.

Advanced: peak, reset & drawdown

Compare fixed claims with resetting amplification at a Bitcoin peak, then stress both paths with a drawdown. Fixed BTC holdings; modeled mechanics, not stock-price forecasts.

Path 1 · Let amplification fall

50% → 25% → 41.67%

Amplification (claims/BTC value)

41.67%

Path 2 · Reset at peak

50% → 25% → 50% → 83.33%

Amplification (claims/BTC value)

83.33%

Reset adds $75,000,000 of fixed claims at the peak (C1 − C0). Bitcoin held stays at 1,000 BTC: this is a mechanical fixed-holdings stress test, not a funding-transaction model — the proceeds of the added claims are not modeled.

0%25%50%75%100%125%Zero modeled residual backingStartPeak (before)Peak (after)After drop
Let amplification fallReset at peakDashed 100% line: zero modeled residual backing. Above 100%: theoretical negative-residual zone, not a bankruptcy trigger.Shaded 35–70% / above 70%: educational zones from the original graphics, not validated thresholds.

Path 1 · Let amplification fall

Start
BTC price
$150,000
BTC value
$150,000,000
Fixed claims
$75,000,000
Residual BTC backing after claims
$75,000,000
Amplification (claims/BTC value)
50%
Peak · before decision
BTC price
$300,000
BTC value
$300,000,000
Fixed claims
$75,000,000
Residual BTC backing after claims
$225,000,000
Amplification (claims/BTC value)
25%
Peak · after decision
BTC price
$300,000
BTC value
$300,000,000
Fixed claims
$75,000,000
Residual BTC backing after claims
$225,000,000
Amplification (claims/BTC value)
25%
After drawdown
BTC price
$180,000
BTC value
$180,000,000
Fixed claims
$75,000,000
Residual BTC backing after claims
$105,000,000
Amplification (claims/BTC value)
41.67%

Path 2 · Reset at peak

Start
BTC price
$150,000
BTC value
$150,000,000
Fixed claims
$75,000,000
Residual BTC backing after claims
$75,000,000
Amplification (claims/BTC value)
50%
Peak · before decision
BTC price
$300,000
BTC value
$300,000,000
Fixed claims
$75,000,000
Residual BTC backing after claims
$225,000,000
Amplification (claims/BTC value)
25%
Peak · after decision
BTC price
$300,000
BTC value
$300,000,000
Fixed claims
$150,000,000
Residual BTC backing after claims
$150,000,000
Amplification (claims/BTC value)
50%
After drawdown
BTC price
$180,000
BTC value
$180,000,000
Fixed claims
$150,000,000
Residual BTC backing after claims
$30,000,000
Amplification (claims/BTC value)
83.33%

Residual BTC backing after claims = modeled Bitcoin value − modeled fixed claims. It excludes other assets, cash and operating value; fees, dividends, debt maturities and other obligation details are not modeled. This is not a traded common-equity valuation or an assessment of ability to meet obligations.

Crash discipline

Maximum peak amplification that stays at or below a target after a 40% drawdown. Drawdown multiplier 1/(1 − D) = 1.6667×.

Target 50%

30%

Target 60%

36%

Target 70%

42%

Target 80%

48%

Formulas & assumptions
  • Amplification = fixed claims ÷ (BTC held × BTC price)
  • C0 = A0 × H × P0; peak amplification = A0 × P0 ÷ P1
  • P2 = P1 × (1 − D)
  • Path 1: claims stay C0; final = C0 ÷ (H × P2)
  • Path 2: claims reset to C1 = A0 × H × P1 at the peak; final = A0 ÷ (1 − D)

Bitcoin holdings are fixed throughout. No costs, dividends, fees, taxes or new BTC purchases are modeled. The reset is a one-time step at the peak, not continuous financing. At 100%, modeled residual backing is zero; above it, negative—not an automatic bankruptcy trigger or a prediction of traded common-share value. The 35%/70% chart zones are educational markers from the original graphics, not validated universal thresholds. Scenarios illustrate mechanics and do not predict stock prices.

Read the full Technical Note
Bitcoin doubles, then drops 40%: letting amplification fall versus resetting at the top

Bitcoin doubles, then drops 40%: letting amplification fall versus resetting at the top

Open full size Read the full Technical Note
Why amplification should fall when Bitcoin rips: event path from 50% to 25%, then 41.7% versus 83.3%

Why amplification should fall when Bitcoin rips: event path from 50% to 25%, then 41.7% versus 83.3%

Open full size Read the full Technical Note