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Michael Saylor, executive chairman of Strategy, laid out a clear view of Bitcoin’s role as an asset class, arguing that BTC does not require inflation, staking, or protocol-based yield mechanisms to generate returns. Instead, he said returns should come from financial products built around Bitcoin holdings.
Saylor described a five-layer framework called the “Digital Asset Stack,” positioning Bitcoin as pure digital capital at the base of a structure that also includes credit, money, yield, and equity capital instruments. He linked the model to Strategy’s approach, noting that the company holds the largest BTC holdings among publicly traded companies worldwide.
In this architecture, Saylor’s core concept is “digital credit”: financial instruments designed to generate returns using Bitcoin as collateral while reducing exposure to BTC price volatility. He described the structure as one where equity capital absorbs price risk, while credit instruments are intended to deliver comparatively more stable returns.
Saylor pointed to STRC, Strategy’s perpetual preferred stock, as a central example of “digital credit” and as a representative of an asset class built on Bitcoin through capital markets engineering. He argued that BTC volatility is not a flaw, but a natural feature of scarce global capital traded around the clock, and that instruments like STRC are designed to cushion fluctuations by sitting above Bitcoin in the capital structure.
“The important point is not that digital credit always has a fixed volatility number. It doesn’t“, Saylor stated in the post.
Saylor also addressed how Bitcoin sales affect the model. He said that if the company’s policy is not to sell its Bitcoin, then the credit would retain value and so would the equity.
“If the company’s policy is that we will not sell the Bitcoin, then the credit will have no value and neither will the equity“, he declared at the BTC Prague conference last week.
STRC closed Monday at $95.20, below its stated par value of $100, according to Nasdaq data. The stock is structured to trade near that reference level.
