Michael Saylor: "Digital Credit" is the Next Phase for the Crypto Industry

On March 27, according to Forbes, Michael Saylor has transformed Strategy (formerly MicroStrategy) from a little-known enterprise software company into the world’s largest corporate holder of Bitcoin over the past six years, accumulating over 762,000 BTC, valued at tens of billions of dollars. Speaking at the Digital Asset Summit in New York yesterday, Saylor discussed “digital credit” and identified it as a core opportunity. He introduced STRC (nicknamed “Stretch”), a preferred equity product positioned by Strategy as a unique tool in the crypto space: a low-volatility, high-yield asset designed for inclusion in fixed-income portfolios. Saylor mentioned that the product offers a yield of 11.5%, volatility of approximately 2%, and a Sharpe ratio close to 4. With a nominal size of $5 billion and an average daily liquidity of $224 million, the product already possesses institutional-grade trading volume. He stated after the event, “Digital credit is the most attractive credit instrument in the world. If you can create a product with a Sharpe ratio of 4, it should be in every portfolio.” Meanwhile, institutional capital is flowing back into Bitcoin through regulated channels, with U.S. spot ETFs recording their longest streak of net inflows this year. However, the proportion of crypto assets allocated within U.S. managed wealth remains below 0.5%—a gap Saylor is attempting to bridge. For investors seeking yield, a tool that uses Bitcoin as collateral, exhibits bond-like volatility, and offers double-digit returns opens up an entirely new investment narrative.