Strategy Founder: The next phase of the crypto industry is digital credit

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Deep Tide TechFlow News, on March 27, according to Forbes, Strategy founder Michael Saylor delivered a speech at the New York Digital Asset Summit on March 26, defining “digital credit” as the next core opportunity in the crypto industry.

Saylor highlighted Strategy’s preferred stock product STRC (codenamed “Stretch”). He described it as a fixed-income instrument with low volatility and high returns, currently offering an annualized yield of 11.5%, with volatility around 2%, a Sharpe ratio close to 4, a nominal value of $5 billion, and an average daily liquidity of approximately $224 million, reaching institutional trading scale. Saylor stated that STRC’s volatility is lower than that of bonds, the S&P 500 index, gold, Microsoft, Google, and Bitcoin itself.

There are doubts about the sustainability of STRC, with some believing its returns depend on the continuous rise of Bitcoin prices and Strategy’s ongoing favorable financing conditions. In a market downturn, the model could face pressure.

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