Michael Saylor: The Next Phase of Crypto Will Be 'Digital Credit'

March 27th news: Over the past six years, Michael Saylor has transformed Strategy (formerly MicroStrategy) from an enterprise software company with little attention from outside the industry into the world’s largest corporate holder of Bitcoin, accumulating over 762,000 BTC, valued at tens of billions of dollars. At the Digital Asset Summit held in New York yesterday, Saylor discussed ‘digital credit,’ viewing 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 to be included in fixed-income portfolios. Saylor mentioned that the product offers a yield of 11.5% with a volatility of approximately 2%, and a Sharpe ratio close to 4. The product has a nominal size of $5 billion and an average daily liquidity of $224 million, already demonstrating 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.’ Concurrently, institutional funds are re-entering Bitcoin through regulated channels, with U.S. spot ETFs recording the longest net inflow streak this year. However, the proportion of crypto assets allocated within managed wealth in the U.S. remains below 0.5%—a gap Saylor is attempting to bridge. For investors seeking yield, a tool backed by Bitcoin as collateral, with bond-like volatility and double-digit returns, opens up an entirely new investment narrative.