Buck Token Launches as Bitcoin-Backed Yield Play with MicroStrategy Ties
A new crypto token called Buck has launched, offering investors a way to earn yields indirectly backed by MicroStrategy’s bitcoin holdings. The project, led by Buck Labs founder Travis VanderZanden, builds on an idea first proposed by Michael Saylor—creating financial products tied to 'Bitcoin Treasury Companies'.
Michael Saylor originally suggested that institutions could develop funds or securities based on the preferred shares of firms heavily invested in bitcoin. MicroStrategy, a key player in this space, has already issued five series of preferred shares, including STRC, a variable-dividend security designed to trade near $100. STRC currently provides an 11% annual dividend yield, paid monthly, and is supported by MicroStrategy’s $2.25 billion cash reserve—enough to cover roughly 2.5 years of payouts.
Buck Labs, a Cayman Islands-based firm, has expanded on Saylor’s concept with Buck, an Ethereum-based token. Launched at $1 and available for purchase via Buck’s website, its price will now fluctuate based on market demand. The token is not accessible to U.S. citizens.
Buck is structured as a transparent savings community, with its value linked to STRC’s overcollateralisation in bitcoin and MicroStrategy’s financial framework. Holders receive around 7% annual yield and can vote on how earnings from STRC are distributed. However, unlike traditional banks, Buck Labs lacks a long-standing reputation, which may affect investor confidence.
The idea of bitcoin Treasury Companies and their derivative tokens carries risks, highlighted by past collapses like TerraUSD (UST) and Celsius in 2022. These failures serve as a reminder that such innovations require careful scrutiny.
Buck’s launch marks another step in the evolution of bitcoin-backed financial products, offering investors a new way to earn yields through a decentralised structure. However, its success will depend on market trust and the stability of its underlying assets, given the risks seen in similar ventures.
