Michael Saylor: The Next Phase of the Crypto Industry Will Be "Digital Credit"

BlockBeats News, March 27th, According to Forbes, Michael Saylor has transformed Strategy (formerly MicroStrategy) from a relatively obscure enterprise software company in the industry to the world's largest corporate Bitcoin holder over the past six years, accumulating over 762,000 BTC worth tens of billions of dollars.

At yesterday's digital asset summit in New York, Saylor discussed "digital credit" as a core opportunity. The STRC he introduced (nicknamed "Stretch") is a preferred stock product positioned by Strategy as a unique tool in the crypto space: a low-volatility, high-yield asset designed to be part of fixed-income investment portfolios. Saylor mentioned that the product has a yield of 11.5%, a volatility of about 2%, and a Sharpe ratio close to 4. The product has a nominal size of $5 billion, with daily liquidity of $224 million, already at an institutional trading scale.

He said after the meeting: "Digital credit is the most attractive credit tool in the world. If you can create a product with a Sharpe ratio of 4, it should be in every portfolio."

Meanwhile, institutional funds are flowing back into Bitcoin through regulated channels, with U.S. spot ETFs experiencing the longest period of net inflows this year. However, the allocation of crypto assets in U.S. trustee-managed wealth is still less than 0.5%—and Saylor is trying to bridge this gap. For investors seeking returns, a tool collateralized by Bitcoin, with bond-like volatility and double-digit returns, has opened up a new investment narrative.