REX Shares Launches BMAX ETF: Bringing the Corporate Bitcoin Treasury Strategy to Investors

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REX Shares has launched a new ETF that offers a sophisticated investment strategy traditionally more common to institutional investors.

The REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX) gives investors access to convertible bonds issued by companies holding Bitcoin in their corporate treasuries — offering convertible bond access, equity growth potential, and exposure to companies acquiring bitcoin on their balance sheet in one ETF.

The $40+ Billion Treasury Strategy Now Available to All

Convertible bonds blend debt security with equity potential. When used by firms holding Bitcoin, they unlock an innovative financing approach transforming corporate treasury management.

This capital allocation strategy was previously difficult for most investors to replicate.

BMAX solves this investment hurdle by seeking to provide:

1. Retail investor access to corporate convertible bonds issued by companies that own Bitcoin through an ETF structure
2. Actively managed exposure that reduces single-issuer concentration risk while maintaining focus on the strategy
3. Streamlined investment vehicle that eliminates the complexity of sourcing and managing individual bond positions

Convertible Bonds + Equity Growth + Bitcoin Treasuries = BMAX

BMAX’s underlying convertible bonds offer a unique balance of risk and growth opportunity. These instruments have historically provided:

• Defined risk exposure when the issuer's stock price stays below conversion price at maturity
• Equity appreciation when stock values exceed the conversion threshold

This structure delivers what REX Shares calls an "asymmetric return profile” combining the lower volatility characteristics of bonds with the upside potential of equities in companies whose valuations increasingly reflect their Bitcoin assets.

The Corporate Playbook: Zero Interest Funding for Bitcoin Acquisitions

Firms such as MicroStrategy have pioneered using convertible debt to fund Bitcoin acquisitions for key strategic advantages:

1. Lower cost of capital — Convertible notes often carry minimal or zero interest rates thanks to the equity conversion option
2. Reduced immediate dilution — Unlike direct stock issuance, these bonds only convert to equity at higher valuations, helping limit dilution for existing shareholders.
3. Strategic reserve asset — Presently, Bitcoin offers global liquidity and 24/7 tradability
4. Balance sheet transformation — Shifts what Saylor terms "crumbling liabilities" of cash into potential growth assets

Inside BMAX: The Strategy and Holdings

According to the fund materials, BMAX will invest at least 80% of its assets in convertible bonds issued by companies holding Bitcoin in their treasuries. As of April 1st, its holdings primarily consist of convertible bonds from:

• MicroStrategy Inc. (MSTR) 83.01% — Multiple issuances with various maturities
• MARA Holdings Inc. (MARA) 13.6%— Several convertible bond offerings
• Riot Platforms Inc. (RIOT) — 3.86% Convertible debt securities

Fund holdings as of 4/1/25. For current holdings go to rexshares.com/bmax. The fund is actively managed with a 0.85% expense ratio and trades on the NASDAQ exchange.

Market Mispricing: The $40B in Bitcoin vs. $8B in Debt Opportunity

A compelling element of this investment thesis centers on how markets value these convertible instruments. MicroStrategy alone holds 499,096 BTC worth approximately $40.6 billion (at $81,323 per Bitcoin as of 2/24/2025)—compared to just $8.224 billion in outstanding convertible debt obligations.

Despite this substantial asset backing, many credit models undervalue these securities by classifying Bitcoin as speculative rather than as a liquid reserve asset. This market disconnect may create advantageous entry opportunities for BMAX investors.

What Investors Need to Know Before Buying BMAX

While BMAX provides exposure to companies acquiring Bitcoin with potentially less volatility than direct crypto holdings, investors should consider several important factors:

1. Corporate Bitcoin holdings risk — Companies with Bitcoin treasuries face price swings, regulatory shifts, and complex accounting requirements
2. Convertible bond mechanics — These securities respond differently to market conditions than standard bonds or stocks, especially during interest rate shifts
3. Taxable corporate structure — BMAX operates as a C-corporation for tax purposes, creating different tax implications for distributions versus standard ETFs
4. Issuer concentration — Though the fund diversifies across multiple convertible bond issuers, it maintains tight focus on Bitcoin treasury companies, primarily in the technology sector

An investment in BMAX is not a direct or indirect investment in Bitcoin. It is an indirect investment in corporate convertible bonds for companies who hold Bitcoin. Bitcoin investing involves a significant risk, and risks assumed by the corporation that holds Bitcoin may have an impact on the results of the BMAX strategy.

The Bottom Line: A New Class of Bitcoin-Adjacent Investment

With BMAX, REX Shares continues its track record of bringing innovative investment products to ETF investors. Building on their MicroSectors™ and T-REX product innovations, they've developed a solution for those wanting Bitcoin market participation with reduced price swings.

For investors watching Bitcoin's corporate adoption but hesitant about direct cryptocurrency investments, BMAX looks to deliver fixed income characteristics plus equity growth potential connected to Bitcoin treasury strategies.

Before investing, read the fund's prospectus to understand its risks and determine if BMAX fits your financial goals and portfolio needs.

Important Information

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the REX Shares. To obtain a Fund’s prospectus and summary prospectus call 1-844-802-4004. A Fund’s prospectus and summary prospectus should be read carefully before investing.

There is no assurance that the Fund will achieve its investment objective, and an investment in the Fund could lose money. No single Fund is a complete investment program.

The value of the Fund, which focuses on underlying securities in the technology sector, may be more volatile than a more diversified pooled investment or the market as a whole, and may perform differently from the value of a more diversified pooled investment or the market as a whole.

Bitcoin Corporate Treasury Companies Risk: Bitcoin Corporate Treasury Companies face unique risks as a result of holding bitcoin in their corporate treasury. The speculative perception of bitcoin may overshadow the fundamentals of such companies, leading to exaggerated price movements based on hype or fear. If you are not prepared to accept significant and unexpected changes in the value of the Fund, you should not invest in the Fund.

Convertible Bond Risk: A convertible bond has characteristics of both equity and debt securities and, as a result, is exposed to risks that are typically associated with both types of securities.

MicroStrategy Incorporated Investing Risk: As of the date of this prospectus, due to MSTR’s large capitalization compared to other Bitcoin Corporate Treasury Companies, the Fund has significant exposure to MSTR. In addition to the risks associated with companies in the software industry and information technology sector, MSTR faces risks related to its bitcoin acquisition strategy.

Bitcoin Risk: While the Fund will not directly invest in digital assets, it will be subject to the risks associated with Bitcoin by virtue of its investments in convertible bonds issued by Bitcoin Corporate Treasury Companies. Investing in Bitcoin exposes investors (such as MSTR and, in turn, MSTR shareholders) to significant risks that are not typically present in other investments. These risks include the uncertainty surrounding new technology, limited evaluation due to Bitcoin’s short trading history, and the potential decline in adoption and value over the long term. The extreme volatility of Bitcoin’s price is also a risk factor. Regulatory uncertainties, such as potential government interventions and conflicting regulations across jurisdictions, can impact the demand for Bitcoin and restrict its usage. Additionally, risks associated with the sale of newly mined Bitcoin, Bitcoin exchanges, competition from alternative digital assets, mining operations, network modifications, and intellectual property claims pose further challenges to Bitcoin-linked investments.

Call Risk: Some debt securities may be redeemed, or “called,” at the option of the issuer before their stated maturity date. In general, an issuer will call its debt securities if they can be refinanced by issuing new debt securities which bear a lower interest rate. The Fund is subject to the possibility that during periods of falling interest rates, an issuer will call its high-yielding debt securities. The Fund would then be forced to invest the proceeds at lower interest rates, likely resulting in a decline in the Fund’s income.

Liquidity Risk: The Fund may hold certain investments that may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Accordingly, the Fund may not be able to sell or close out of such investments at favorable times or prices, or at all.

Derivatives Risk: Derivatives may be more sensitive to changes in market conditions and may amplify risks.

New Fund Risk: The Fund is a recently organized management investment company with no operating history.

Non-Diversification Risk: As a non-diversified fund, the Fund may invest a larger portion of its assets in the securities of one or a few issuers than a diversified fund. A non-diversified fund’s investment in fewer issuers may result in the Fund’s shares being more sensitive to the economic results of those issuers. An investment in the Fund could fluctuate in value more than an investment in a diversified fund.

Taxable Fund Risk: The Fund is taxed as a regular subchapter C corporation for U.S. federal income tax purposes. This differs from most investment companies, which elect to be treated as regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”), in order to avoid paying entity-level income taxes. The Fund generally is not eligible to elect treatment as a regulated investment company because its assets will be invested mostly in securities issued by MSTR. As a result, the Fund will be obligated to pay applicable corporate U.S. federal and state income taxes on its taxable income, as opposed to most investment companies which are not so obligated because of the dividends paid deduction, which is not available to the Fund. Additionally, unlike most ETFs, the Fund will not be eligible to engage in in-kind redemptions on a tax-free basis.

Concentration Risk: The Fund will concentrate in the securities of a particular industry or group of industries. To the extent the Fund has significant exposure in a single asset class or the securities of issuers within the same country, state, region, industry, or sector, an adverse economic, business, or political development may affect the value of the Fund’s investments more than if the Fund were more broadly diversified.

THE FUND, TRUST, ADVISER, AND SUB-ADVISER ARE NOT AFFILIATED WITH THE FUND’S UNDERLYING SECURITIES.

Funds distributed by: Foreside Fund Services, LLC, not affiliated with Rex Shares, LLC, or its affiliates.

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