<\/p>\n
Michael Saylor says Strategy is \u201cconverting digital capital Bitcoin into digital credit (STRC) and digital equity (MSTR),\u201d pitching a three\u2011layer capital stack with BTC as reserve asset, STRC as yield\u2011focused credit, and MSTR as the levered equity layer.<\/p>\n
<\/p>\n
Michael Saylor, founder and executive chairman of Bitcoin treasury company Strategy, said on X that the firm is \u201cconverting digital capital Bitcoin into digital credit (STRC) and digital equity (MSTR),\u201d underscoring what he called a Bitcoin-centric capital market architecture. The post reiterates a theme Saylor has been pushing since his Bitcoin 2026 keynote, where he framed Bitcoin as \u201cengineered capital,\u201d STRC as a digital credit instrument built on that capital, and MSTR as the equity layer that absorbs the residual upside and volatility.<\/p>\n
At the Bitcoin 2026 conference, Saylor detailed Strategy\u2019s three-layer model, with Bitcoin as layer-one digital capital, STRC as layer-two digital credit, and a range of yield and money products at layer three. \u201cDigital credit is a killer application of digital capital. Every dollar that flows into digital credit will flow into digital capital,\u201d he said, describing STRC as the credit layer built directly on top of Strategy\u2019s BTC reserves.<\/p>\n
STRC (ticker STRC), nicknamed \u201cStretch,\u201d is Strategy\u2019s variable-rate perpetual preferred stock backed by the company\u2019s Bitcoin holdings and designed to trade near a $100 par value, according to the\u00a0digital credit dashboard<\/a>. Strategy manages STRC\u2019s price stability by adjusting its monthly dividend rate and using an at-the-market (ATM) issuance program to sell new shares when they trade at or above $100, raising cash to buy more BTC and expand its reserve. In an April update, Saylor said STRC had reached $8.5 billion in assets under management in roughly nine months, making it \u201cthe world\u2019s largest preferred stock\u201d and targeting what he described as a $3.5 trillion private credit market.<\/p>\n In that same presentation, Saylor argued traditional private credit is \u201cilliquid, opaque, discrete, and burdened with fees,\u201d while \u201cdigital credit\u201d such as STRC is \u201cliquid, transparent, homogeneous, scalable, accessible, and carries no fee,\u201d positioning the product as a structural fix to what he sees as misaligned incentives in legacy markets. KuCoin\u2019s summary of the Bitcoin 2026 talk noted that STRC\u2019s design channels Bitcoin\u2019s capital returns into monthly income, with an 11% yield based on BTC\u2019s 38% annualized return and a 5:1 collateral ratio intended to protect principal even if Bitcoin falls by 80%.<\/p>\n <\/p>\n On the equity side, MSTR \u2014 Strategy\u2019s common stock \u2014 functions as what Saylor calls \u201cdigital equity,\u201d a leveraged claim on the firm\u2019s expanding BTC treasury that captures the excess return from Bitcoin after servicing STRC\u2019s coupon. A\u00a0BitcoinTreasuries<\/a>\u00a0profile notes that Strategy now holds more than 800,000 BTC, and a recent\u00a0digital credit<\/a>\u00a0overview frames MSTR as the equity layer sitting above STRC and other Bitcoin-backed preferreds. Yahoo Finance, in a separate\u00a0report<\/a>, estimated that roughly 85% of a recent $2.5 billion BTC purchase by Strategy was funded through STRC issuance, illustrating how the preferred stock has become the engine for scaling the company\u2019s Bitcoin balance sheet.<\/p>\n <\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Michael Saylor says Strategy is \u201cconverting digital capital Bitcoin into digital credit (STRC) and digital equity (MSTR),\u201d pitching a three\u2011layer capital stack with BTC as reserve asset, STRC as yield\u2011focused…<\/p>\n","protected":false},"author":1,"featured_media":1514,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-27871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/27871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=27871"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/27871\/revisions"}],"predecessor-version":[{"id":27872,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/27871\/revisions\/27872"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/1514"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=27871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=27871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=27871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}