Core Concepts

This page defines the foundational elements of the MegaStrategy protocol.

Treasury NAV

The Treasury NAV represents all BTC held by the protocol. This is the core asset that bond series collectively work to grow over time.

Bond Series

A bond series is a discrete capital raise with immutable terms defined at launch. Each series operates independently with its own:

• Face value and maturity date — when and how much is owed

• Issuance caps — maximum amount that can be raised

• Settlement rules — how repayment is calculated and executed

• Series ledger — accounting for that series' inflows and obligations

• Backstop pool (USD series only) — dedicated USDT backing repayment

Series isolation means each raise is self-contained. Terms cannot change after launch, and one series' performance doesn't affect another's mechanics.

Instruments

Every bond series issues two NFTs to investors:

Note NFT

The Note NFT is the principal claim. It represents the right to receive repayment at maturity according to series terms.

• Transferable on-chain

• Denominated in the subscription currency (BTC or USD)

• Contains no upside optionality

Warrant NFT

The Warrant NFT is a tradable, option-like instrument. Holders can exercise by paying USDT to the protocol.

• Tradable independently from Notes

• Exercise price is the USDT par value

• Exercise proceeds flow to the series ledger

This separation lets bond buyers monetize the warrant immediately while retaining principal protection, and lets traders speculate on warrants without taking bond exposure.

Series Ledger

Each bond series maintains a series ledger that tracks:

• Warrant exercise proceeds (USDT received when warrants are exercised)

• Buffer allocations for maturity settlement

• Rewards and compensation flows

For USD bond series, warrant proceeds reduce the amount of backstop USDT that must remain locked, since they add to the series' repayment capacity.

USDT Backstop Pool

Each USD bond series has a dedicated USDT Backstop Pool funded by stakers (not $MSTR holders). The pool ensures the series can repay Note NFTs at maturity using straightforward USDT funding.

Key characteristics:

• No collateral ratio — the pool is pure USDT, not collateralized tokens

• No liquidation mechanics — repayment doesn't depend on selling $MSTR

• Pro-rata withdrawals — stakers can withdraw excess USDT as obligations decrease

$MSTR Token

$MSTR is the protocol token. It is used for:

• Governance participation

• Staker compensation at maturity (reserved $MSTR is minted and distributed)

• Protocol fee accrual