In a recent interview, Michael Saylor, the executive chairman of Strategy, addressed the company’s decision to sell Bitcoin, emphasizing the necessity of maintaining flexibility in asset management to support its digital credit offerings. This statement follows Strategy’s disclosure of its first Bitcoin sale since 2022, where it offloaded 32 BTC in a June 1 filing with the U.S. Securities and Exchange Commission. This move seems to contradict Saylor’s previous mantra of never selling Bitcoin.
During the BTC Prague conference, Saylor explained the importance of retaining the ability to sell Bitcoin holdings to underpin dividend-paying securities and other Bitcoin-backed financial products. “If the company’s policy is that we won’t sell the Bitcoin, then the credit won’t have value and the equity won’t have value,” he remarked, clarifying that the company’s operations are centered on the issuance of digital credit, which is supported by Bitcoin as a form of capital.
Saylor introduced the company’s STRC preferred stock as an example of “digital credit” instruments that leverage the Bitcoin balance sheet to fulfill credit obligations. He noted that such securities have become essential for raising capital, especially to acquire additional Bitcoin assets.
He further highlighted the emergence of digital credit markets as a potential “trillion-dollar opportunity,” suggesting that they could enable the creation of yield-bearing digital financial products. Saylor perceives Bitcoin as a transformative force in the realm of capital, whereas STRC represents a shift in how credit is structured and utilized. He indicated that digital credit products might offer yields of up to 8%, significantly higher than typical savings accounts, thereby attracting investors and bringing substantial funds into the Bitcoin ecosystem.
To illustrate the potential of digital credit markets, Saylor referenced projects like Saturn and Apyx, which focus on developing yield-bearing products. However, challenges have arisen, as evidenced by Apyx Finance’s dividend-backed synthetic stablecoin (apxUSD) recently experiencing volatility. The stablecoin depegged to as low as $0.90, attributed to a decline in the value of STRC shares, which fell below their $100 par value, alongside broader market dynamics and liquidity issues. As of the time of reporting, apxUSD was trading at $0.96, still below its intended $1 peg.
The full interview with Saylor is set to be released on Cointelegraph’s YouTube channel in the coming days, promising to provide more insights into his perspectives on the future of Bitcoin and digital finance.
