Strategy Eyes Bigger Bitcoin-Backed Credit Business, With Annual Issuance of Up to $10.8 Billion

Strategy, the world’s largest corporate Bitcoin holder, is positioning "digital credit" — fundraising backed by its Bitcoin holdings — as a new growth driver.

Odaily reported on August 19 that Strategy said in an investor presentation released that day it held 840,447 Bitcoin as of August 9. That is about 4% of Bitcoin’s total supply of 21 million tokens.

The company plans to expand its credit business using those Bitcoin holdings as collateral. Depending on market conditions, it aims to issue digital credit products equal to 10% to 20% of the value of its Bitcoin. At current prices, that would translate into annual issuance of $5.4 billion to $10.8 billion.

Strategy also plans to increase its Bitcoin holdings over the long term through capital-markets instruments such as corporate bonds and preferred stock.

The company identified Bitcoin price volatility, weaker funding conditions and a decline in mNAV, or the ratio of net asset value to market capitalization, as key risks.