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

BlockBeats news, March 27, according to Forbes, over the past six years, Michael Saylor has transformed Strategy (formerly MicroStrategy) from an enterprise software company with little industry attention into the world's largest corporate holder of Bitcoin, accumulating more than 762,000 BTC, worth tens of billions of dollars.

At the Digital Assets Summit held yesterday in New York, Saylor spoke about "digital credit" and identified it as a core opportunity. He introduced STRC (nicknamed "Stretch"), a preferred stock 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 this product has a yield of 11.5%, a volatility of about 2%, and a Sharpe ratio close to 4. The product’s notional size is $5 billion, with an average daily liquidity of $224 million, already reaching institutional-grade trading size.

After the event, he stated: "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 funds are flowing back into Bitcoin through regulated channels, with US spot ETFs recording the longest net inflow streak so far this year. However, among assets under fiduciary management in the US, the allocation to crypto assets remains below 0.5%—and Saylor is trying to bridge that gap. For yield-seeking investors, a tool collateralized by Bitcoin, with bond-like volatility and double-digit returns, is opening up an entirely new investment narrative.