SPAXX vs STRC vs T-Bills: Comparative Purchasing Power

▶ Short-Term Horizon (< 6mo)

For immediate liquidity requirements (e.g. daily operating buffers, margin coverage):

Winner: SPAXX. Auto-sweep utility beats minor yield differences.
T-bills are less optimal for intraday liquidity but lock in yield.
STRC has price volatility that makes it risky for < 6 months.

Preservation Quality: HIGH (Liquidity Focus)

▶ Medium-Term Horizon (6 - 12mo)

For capital allocated to trades or cash reserve holdings over the coming year:

Winner: T-Bills. Locking in a state-tax-free 3.5% yield mitigates interest rate cut risks.
SPAXX provides flexibility but yields adjust downward immediately upon Fed rate cuts.
STRC coupon yields 11.5% but carries corporate credit risk.

Preservation Quality: STABLE (Guaranteed Yield)

▶ 2-Year Horizon (24 Months)

For core capital parking where outpacing purchasing power erosion is the priority:

Winner: STRC. Stated 11.5% yield compounds without annual tax drag (ROC structure).
SPAXX & T-Bills fail to beat CPI on an after-tax basis (generating negative real returns).
STRC preserves and increases purchasing power by +5.34% to +7.01% annually.

Preservation Quality: SUPERIOR (Purchasing Power Outperformer)

📊 2-Year Comparative Model Summary ($1,000 Capital Base)

Vehicle	Nominal Yield	After-Tax Net Yield	Y2 Nominal After-Tax	Y2 Real PP (CPI 3.80%)	Real Ann. Return (CPI)	Y2 Real PP (Truflation 2.18%)	Real Ann. Return (Truflation)
SPAXX Sweep	3.30%	2.574%	$1,052.14	$976.52	-1.18%	$1,007.73	+0.39%
US Treasury Bills	3.50%	2.730%	$1,055.35	$979.49	-1.03%	$1,010.79	+0.54%
STRC Preferred (ROC)	11.50%	9.339% *	$1,195.50	$1,109.57	+5.34%	$1,145.03	+7.01%

* Note: STRC after-tax net yield of 9.339% assumes a full liquidation of shares at par ($100) at Month 24, triggering a 15% long-term capital gains tax on the cumulative basis reduction ($230). Cash distributions are completely tax-free at receipt.

⚙️ Adjust Economic & Portfolio Parameters

Starting Capital: $1,000

CPI Inflation YoY: 3.8%

Truflation YoY: 2.18%

Ordinary Income Tax (SPAXX/T-Bills): 22.0%

Capital Gains Tax (STRC ROC): 15.0%

SPAXX Yield: 3.3%

T-Bill Yield: 3.5%

STRC Yield / Coupon: 11.5%

SPAXX Y2 Real Value

$976.52

Real Return: -1.18%

T-Bill Y2 Real Value

$979.49

Real Return: -1.03%

STRC Y2 Real Value

$1,109.57

Real Return: +5.34%

📈 Real Value Projection Over 24 Months (CPI Deflated)

SPAXX After-Tax Real

T-Bills After-Tax Real

STRC After-Tax Real

💼 OGS Allocation Playbook & Scarcity Thesis

In an environment of structurally higher sovereign yields and creeping inflation, cash parking is a dynamic optimization problem, not a set-and-forget allocation:

Tier 1 Sweep (SPAXX): Maintain at 15–20% of account values as cash-sweep collateral for options writing. Auto-liquidation rules allow instant access, earning interest on floats right up to premium payments.
Tier 2 Protection (T-Bills): Maintain at 20–30% of portfolio reserves in rolling T-bills (3-month or 6-month durations) to lock in yield curves, locking in state-tax-free capital preservation with zero credit risk.
Tier 3 Arbitrage (STRC): Maintain at 40–50% yield-parking sleeve. Collect the 11.5% yield completely tax-free at receipt. Defer tax liability, and monitor Strategy Inc. credit buffers (Bitcoin loan-to-value health) for structural exit signals.

🔑 The Return of Capital (ROC) Tax Arbitrage

For a Texas resident in the 22% bracket, the ROC structure creates an extraordinary compounding advantage:

Vehicle	Tax Category	Immediate Tax	Deferred Tax
SPAXX Sweep	Ordinary Income	22% / Yr	0%
T-Bills	Federal Ordinary	22% / Yr	0%
STRC Preferred	Return of Capital	0% / Yr	15% on sale *

* The ROC Deferral Effect: SPAXX and T-bills force you to pay tax every single year, reducing the compounding base. STRC lets you compound on the pre-tax distribution throughout the holding period. Tax is paid at the lower capital gains rate (15%) only when the shares are liquidated.

Purchasing Power Deferral: SPAXX vs STRC vs T-Bills