"Saylor Presents Possibility of Raising Up to $100 Billion With 'Bitcoin Credit' Model"

Michael Saylor, CEO of Strategy (formerly known as MicroStrategy), the public company holding the largest amount of Bitcoin (BTC), has introduced a new funding model using Bitcoin as collateral.

According to NewsBTC, a digital asset-focused media outlet, on the 16th Saylor plans to raise capital through 'Perpetual Preferred Stock' instead of traditional common stock issuance or convertible bonds (CB). This product has no maturity date and allows for deferral of dividend payments, offering significant flexibility for the issuer.

Saylor aims to brand this as 'Stretch' and use it as the main source of capital over the next four years, alongside reducing convertible bond repayments and the issuance of common shares.

He emphasized, "This kind of Bitcoin 'credit model' could raise up to $100 billion, possibly up to $200 billion if there is sufficient demand." Strategy raised approximately $6 billion this year alone through four separate issuances of perpetual preferred stock. Among them, the recent $2.5 billion issuance is noted as one of the largest short-term capital raises in the digital asset industry.

The outlet added, "This model is a unique approach that encourages retail investor participation," but also noted that "the high dividend burden (8~10% annually) can pose a major risk for the company during market downturns."