Warrant NFT
The Warrant NFT is your upside. It gives you the right to receive $MSTR at a set strike price — essentially a call option on $MSTR.
What Is a Warrant NFT?
A Warrant NFT represents:
The right to receive $MSTR by paying the strike price
The strike price — set 30-70% above $MSTR market price at issuance
The value — denominated in dollar terms
The expiry — when the Warrant can no longer be exercised
Two Ways to Get Warrants
Unlike Notes, Warrants aren't always tied to a bond:
Buy a bond
Every bond purchase includes a Warrant NFT
Protocol rewards
Warrants are issued as standalone incentives
Standalone Warrants are given as:
Rewards for USDT Insurance Pool stakers
Bonuses for bond buyers
Other protocol incentives
This means you can hold Warrants without ever buying a bond.
How Exercise Works
You profit when: $MSTR market price > your strike price
Example: Bond Warrant
Dave buys a USD bond with $1,000 USDT.
His Warrant terms:
Face value: $1,000
Strike price: $15 per $MSTR (current market: $10)
$MSTR receivable: $1,000 ÷ $15 = 66.67 $MSTR
Later, $MSTR rises to $25.
Dave exercises:
Pays: $1,000 USDT (strike × amount)
Receives: 66.67 $MSTR (worth $1,666.75 at market)
Profit: $666.75
Example: Standalone Reward Warrant
Emma stakes USDT in the Insurance Pool for 12 months.
She receives 500 Warrant NFTs as rewards.
Each Warrant:
Strike price: $12 per $MSTR
$MSTR per Warrant: 10 $MSTR
Emma can:
Hold — Wait for $MSTR to rise above $12
Exercise — Pay $120 per Warrant, receive 10 $MSTR each
Sell — Trade Warrants on secondary market
What Are Your Options?
Exercise
$MSTR price is above strike and you want $MSTR
Sell
You want cash now, or prefer not to pay the strike price
Hold
You believe $MSTR will rise further before expiry
Let expire
$MSTR price is below strike — Warrant is "out of the money"
Key Characteristics
Tied to series?
Sometimes — can be standalone rewards
Strike price
30-70% above $MSTR price at issuance
Valued in
Dollar terms
Transferable
Yes — trade anytime before expiry
Expires
Yes — must exercise before expiry date
Note vs. Warrant: Quick Comparison
Represents
Principal
Upside
Value
Stable (face value)
Variable ($MSTR dependent)
Tied to series?
Always
Not always
Expires?
No — claim anytime after maturity
Yes — must exercise before expiry
Downside
Minimal (backed by proceeds + pool)
Can expire worthless
Next: Insurance Pool — how USD bonds are protected.
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