Michael Saylor: The next phase of the crypto industry will be "digital credit"

ChainCatcher reports that, according to Forbes, Michael Saylor has transformed Strategy (formerly MicroStrategy) over the past six years from an obscure enterprise software company outside the industry into the world’s largest corporate Bitcoin holder, with over 762,000 BTC worth billions of dollars.

At the digital asset summit held yesterday in New York, Saylor discussed “digital credit” and regarded it as a core opportunity. He introduced STRC (nickname “Stretch”), a preferred stock product positioned by Strategy as a unique tool in the crypto space: a low-volatility, high-yield asset designed to be included in fixed-income portfolios. Saylor mentioned that the product offers an 11.5% yield, approximately 2% volatility, and a Sharpe ratio close to 4. The product has a nominal size of $5 billion, with an average daily liquidity of $224 million, already reaching institutional trading scale.

He stated afterward, “Digital credit is the most attractive lending tool in the world. If you can create a product with a Sharpe ratio of 4, it should be in every investment portfolio.”

Meanwhile, institutional funds are flowing back into Bitcoin through regulated channels, with the US spot ETF experiencing its longest net inflow cycle of the year. However, the proportion of crypto assets in managed wealth in the US remains below 0.5%, and Saylor is working to bridge this gap. For yield-seeking investors, a tool that uses Bitcoin as collateral, with bond-like volatility and double-digit returns, opens a new investment narrative.