Michael Saylor: The Next Phase of the Crypto Industry Will Be "Digital Credit"

March 27th — Per Forbes, Michael Saylor has turned Strategy (formerly MicroStrategy) from a relatively obscure enterprise software firm into the world’s largest corporate Bitcoin holder over the past six years, amassing more than 762,000 BTC worth tens of billions of dollars. At yesterday’s digital asset summit in New York, Saylor highlighted “digital credit” as a core opportunity. The STRC product he introduced (nicknamed “Stretch”) is a preferred stock offering Strategy positions as a unique crypto tool: a low-volatility, high-yield asset built for fixed-income portfolios. Saylor noted the product boasts an 11.5% yield, ~2% volatility, and a Sharpe ratio near 4. It has a $5 billion nominal size, $224 million in daily liquidity, and already operates at institutional trading scale. “Digital credit is the world’s most attractive credit tool,” he said after the event. “If you can create a product with a Sharpe ratio of 4, it belongs in every portfolio.” Meanwhile, institutional funds are flowing back into Bitcoin via regulated channels, with U.S. spot ETFs logging their longest streak of net inflows this year. Still, crypto asset allocation in U.S. trustee-managed wealth remains under 0.5% — and Saylor is working to close that gap. For investors chasing returns, a Bitcoin-collateralized tool with bond-like volatility and double-digit yields has unlocked a new investment narrative.