Saylor's Bitcoin Bond Strategy Now Available in New BMAX ETF

REX Shares has unveiled the first exchange-traded fund that allows everyday investors to tap into Michael Saylor's Bitcoin treasury strategy through convertible bonds, making a previously institutional-only market accessible to all.

The REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX) offers exposure to companies using convertible bonds to finance Bitcoin purchases for their corporate treasuries, a strategy championed by Saylor, chairman of Strategy Inc. (MSTR) (formerly MicroStrategy), that was previously difficult for individual investors to access.

The fund, which began trading on March 14, focuses primarily on convertible bonds issued by Strategy, according to a press release announcing the news.

"BMAX removes those barriers, making it easier to invest in the strategy pioneered by Michael Saylor—leveraging corporate debt to acquire Bitcoin as a treasury asset," said Greg King, CEO of REX Financial, in the announcement.

How the BMAX Strategy Works

According to the fund's prospectus, Strategy and other companies have used convertible bonds to finance Bitcoin purchases for their treasuries. These convertible bonds start as low-interest debt instruments but can convert to equity if share prices rise, providing investors a blend of debt stability with potential equity upside.

Strategy has conducted seven distinct convertible bond issuances to finance Bitcoin purchases, according to the prospectus. These offerings mature within approximately four years unless converted earlier.

The fund will invest at least 80% of its assets in convertible bonds from companies that maintain Bitcoin in their corporate treasuries, as stated in the fund factsheet. Beyond Strategy, the ETF also includes positions in convertible bonds from MARA Holdings Inc. (MARA) and Riot Platforms Inc. (RIOT).

BMAX joins a growing ecosystem of financial products built around Strategy's Bitcoin treasury approach. As explained in the prospectus, Bitcoin Corporate Treasury Companies maintain 15% or more of their assets in Bitcoin or derive 15% or more of their income from Bitcoin-linked financial instruments.

The ETF has an expense ratio of 1.14%, including management fees and tax expenses, according to the fund's factsheet. Unlike most ETFs, BMAX is taxed as a regular corporation due to its concentrated holdings.

For investors interested in the Bitcoin treasury approach, BMAX holds 10 different convertible bond positions from three issuers, with Strategy's bonds making up nearly 70% of the portfolio as of the fund's launch.