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Strategy Launches Bitcoin-Native Credit Model to Assess Its Credit Risk

1 hours ago

Strategy has launched a Bitcoin-native credit model to assess credit risk, credit spreads, and other metrics for debt instruments (such as convertible bonds) and preferred shares (including STRC) issued by Strategy Treasury. The model uses custom metrics—BTC Rating (Bitcoin coverage multiple), BTC Risk (default probability), and BTC Credit (spread in basis points)—to analyze the debt and preferred shares, backed by the firm’s $52 billion Bitcoin reserves. All metrics are collateralized/risk-derived from Strategy’s held Bitcoin reserves, with Bitcoin price, volatility, and ARR as core variables. Analysts note that this initiative shifts Bitcoin from a store of value to a capital efficiency tool, driving institutions to treat BTC as a financeable asset and accelerating the development of the digital credit market.

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Alibaba has cumulatively invested around 7.6 billion yuan in Changxin Technology, becoming the industry investor with the largest shareholding stake in the firm.

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