Jul. 17 at 2:36 PM
$TAOX shows why “no debt” does not mean unlevered common equity.
DATCAP tracks
$0 of debt, but
$11.68M of preferred claims sit ahead of common. At current prices,
$15.80M of TAO plus
$3.65M of cash, minus the preferred claim, leaves roughly
$7.76M of residual common NAV.
A 10% move in TAO changes crypto NAV by about
$1.58M—equal to 20.3% of that residual common NAV. That produces approximately 2.03x commonholder Convexity.
Preferred capital removes a maturity date, not seniority. Here, the leverage sits in the capital waterfall rather than the debt line.
