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Key Takeaways
- OranjeBTC plans to list DIGY11, a Brazilian ETF putting 95% into Strategy’s STRC preferred stock and 5% into Strive’s SATA, on the B3 exchange in early September.
- The fund targets Brazil’s CDI rate plus 3 to 5 percentage points net of fees, though the return is not guaranteed and depends on preferred dividend levels.
- DIGY11’s 95% concentration in a single issuer’s preferred stock is unusually direct compared to existing products like VanEck’s PFXF, which holds only about 10% in Strategy preferreds.
OranjeBTC, Brazil’s largest corporate holder of Bitcoin, is preparing to list an exchange-traded fund that would put 95% of its portfolio into Strategy’s STRC preferred stock and the remainder into Strive’s equivalent product, SATA. The fund, called DIGY11, is expected to begin trading on Brazil’s B3 exchange in early September, though the company has not set a firm listing date.
Fund Concentrates in Strategy and Strive’s Preferred Shares
STRC and SATA are preferred shares issued by Strategy and Strive, respectively, both companies that hold large Bitcoin treasuries on their balance sheets. The shares pay recurring U.S. dollar distributions to holders, currently yielding 12.5% for STRC and 13.1% for SATA.
The underlying Bitcoin held by both companies remains on their corporate balance sheets and is not pledged as collateral to preferred shareholders, meaning DIGY11’s return depends on the preferred dividend payments rather than direct Bitcoin price exposure.
OranjeBTC itself holds 3,950 Bitcoin, worth roughly $250 million, using the same type of corporate Bitcoin treasury structure its new fund is built around.
Targeted Yield Comes With No Guarantee
OranjeBTC expects DIGY11 to generate annual distributions equivalent to Brazil’s risk-free interbank rate, known as the CDI, which currently sits at 14.15%, plus roughly 3 to 5 additional percentage points, net of the fund’s estimated 1.30% total cost.
OranjeBTC Director of Strategy and Research Sam Callahan said the estimate depends on the preferred shares’ distribution levels and the interest-rate differential between Brazil and the United States, and does not account for changes in DIGY11’s own share price. Actual investor returns are not guaranteed.
The projected return is a target tied to current market conditions rather than a fixed or contractually promised payout.
Currency Hedging and Fund Structure
Because STRC and SATA pay distributions in U.S. dollars while DIGY11 will trade and distribute income in Brazilian reais, OranjeBTC plans to hedge the fund’s dollar exposure using one-month foreign-exchange forwards, rolled monthly and rebalanced on a quarterly basis.
The fund will charge a 0.90% management fee, with OranjeBTC receiving an undisclosed portion of that fee under a separate consulting agreement.
Brazilian asset manager 3R Investimentos will manage the fund’s portfolio directly, while index provider MarketVector will maintain the benchmark DIGY11 is built to track.
How DIGY11 Compares to Existing Products Abroad
Similar preferred-stock income products already trade outside the United States with limited scale. The 21Shares Strategy Yield exchange-traded product, listed on European exchanges, holds $17.6 million and invests exclusively in STRC, reinvesting monthly distributions rather than paying them out to holders directly.
In the U.S., exposure to Strategy’s preferred shares mostly sits inside broader preferred-stock funds rather than standalone products.
VanEck’s $2.44 billion PFXF fund holds roughly $251 million across four different Strategy preferred securities, about 10% of its total portfolio, making DIGY11’s planned 95% concentration in a single issuer’s preferred stock unusually direct by comparison.
DIGY11 would enter an already-established Brazilian market for listed crypto investment products. Crypto funds and ETFs in Brazil held 13.7 billion reais, or roughly $2.6 billion, across 576,000 investors as of April 2025, according to data from B3’s investor education platform.
