Saylor Says Bitcoin Is Digital Capital as Strategy Builds Equity, Credit Products With MSTR and STRC

Strategy Chairman Michael Saylor has outlined a capital-markets strategy built around Bitcoin that combines equity and credit products.

In a post on X on September 29, Saylor wrote, "Bitcoin is digital capital, MSTR is digital equity, and STRC is digital credit," adding that Strategy is developing two complementary investment products using Bitcoin capital.

According to Saylor, Strategy's common stock, MSTR, offers amplified exposure to Bitcoin prices along with upside from the growth potential of its digital credit business. Its preferred stock, STRC, by contrast, is aimed at reducing Bitcoin price volatility while delivering dollar-based income.

To support that approach, Strategy manages Bitcoin, dollars, debt, preferred stock and common stock within a single treasury structure. Depending on market conditions, it issues MSTR to secure Bitcoin or cash, and adjusts its capital structure by issuing additional STRC or repurchasing it.

The company also separates dollar liquidity into reserves for dividend and interest payments and funds for Bitcoin purchases and debt or share buybacks. STRC's dividend rate is also designed to be adjusted based on factors including its market price, interest rates, Bitcoin prices and reserve levels.

Saylor said the goal is to reduce the impact of Bitcoin price swings on credit investors, shorten cash-flow duration and convert Bitcoin capital into yield-generating corporate financial products. While Bitcoin itself does not pay interest, Strategy can pay dividends through its corporate structure and capital-management system, he added.