Saylor Takes 'Digital Credit' Pitch to Goldman Sachs as Strategy's Bitcoin-Backed Lending Tops $11 Billion

Michael Saylor, executive chairman of Strategy Inc. (Nasdaq: MSTR), used a late-June appearance at Goldman Sachs’ Digital Assets Conference in London to advocate that bitcoin is evolving into a credit market backbone. He discussed ‘Bitcoin, digital credit, and the future of capital markets’ with the bank’s clients, emphasizing that companies can borrow against bitcoin holdings to issue yield-bearing instruments.

Saylor’s core thesis is that bitcoin becomes both ‘digital capital’ for balance sheets and ‘digital credit’ for investors seeking exposure without direct coin ownership. According to him, bitcoin-backed digital credit has expanded from zero to over $11 billion in a year, financing roughly 175,000 BTC purchases by Strategy during the bear market.

Strategy now holds 847,363 BTC, worth about $50.9 billion as of late June. The centerpiece of its credit strategy is STRC, a perpetual preferred stock tied to bitcoin holdings, which has become the world’s largest at $8.5 billion in issuance. Strategy recently raised STRC’s annual dividend rate to 12% to attract income investors.

Saylor’s pitch comes amid market strains; earlier this week, Strategy’s enterprise value briefly fell below the market value of its bitcoin holdings for the first time, erasing the premium investors previously paid for exposure. Skeptics warn that the framework could force bitcoin sales to cover obligations if markets weaken, though Saylor downplays risks. Strategy continues steady accumulation, adding coins in small tranches during the downturn.

Source: https://news.bitcoin.com/saylor-digital-credit-goldman-sachs/