Strategy Launches Bitcoin Native Credit Model to Assess Strategy Credit Risk

BlockBeats News, July 9th, Strategy launched a Bitcoin-native credit model, which is used to assess the credit risk, credit spread, etc., of debt issued by Strategy Treasury companies (such as convertible bonds) and preferred stock (such as STRC).

The model uses custom metrics such as BTC Rating (Bitcoin Coverage Ratio), BTC Risk (Default Probability), and BTC Credit (Spread in bps) to analyze debt and preferred stock with the company's $52 billion BTC reserves as backing. All metrics are collateralized/risk-sourced by the Bitcoin reserves held by Strategy, with Bitcoin price, volatility, and ARR as key variables.

The analysis points out that this move will shift Bitcoin from a store of value to a capital efficiency tool, driving institutions to view BTC as a financeable asset and accelerating the development of the digital credit market.