Strategy’s Michael Saylor targets $3T in tokenized digital credit

Michael Saylor has never been accused of thinking small. The executive chairman of Strategy, the company formerly known as MicroStrategy, is now setting his sights on the global credit market, a $300 trillion behemoth that makes even the most inflated crypto market caps look quaint. His target: capturing at least 1% of it, or roughly $3 trillion, through what he calls “digital credit” instruments backed by Bitcoin. The pitch is straightforward, even if the ambition is not. Saylor argues that digital credit can replace a meaningful slice of the traditional credit market by offering investors low volatility and attractive returns, all while being denominated in or collateralized by Bitcoin. In more optimistic projections, he’s floated capturing 5% to 10% of the market, which would translate to somewhere between $15 trillion and $30 trillion. The STRC machine At the center of this strategy is STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock. STRC offers an annualized variable dividend of approximately 11.5%, paid out monthly, with cited volatility of around 2%. The key engineering trick is overcollateralization. By backing these instruments with significantly ...