Saylor Takes 'Digital Credit' Pitch to Goldman Sachs as Strategy's Bitcoin-Backed Lending Tops $11 Billion
Michael Saylor used a Goldman Sachs digital-assets conference in London to argue that bitcoin’s next phase is “digital credit,” a market he says has swelled past $11 billion in a year. His firm, Strategy, now. . .
Michael Saylor used a Goldman Sachs digital-assets conference in London to argue that bitcoin’s next phase is “digital credit,” a market he says has swelled past $11 billion in a year. His firm, Strategy, now holds 847,363 BTC. Key TakeawaysMichael Saylor pitched bitcoin and “digital credit” at Goldman Sachs in London this week, a market he says tops $11 billion. Strategy holds 847,363 BTC and used credit products to fund about 175,000 BTC purchases during the bear market. STRC, now the world’s largest preferred stock at $8. 5 billion, raised its dividend to 12% to draw yield seekers. Saylor Brings Bitcoin to Goldman’s TableMichael Saylor, executive chairman of Strategy Inc. (Nasdaq: MSTR), used a late-June appearance at Goldman Sachs’ Digital Assets Conference in London to press his case thatbitcoinis evolving from a treasury reserve asset into the backbone of a new credit market. He said he discussed “Bitcoin, digital credit, and the future of capital markets” with the bank’s clients. Image source: X“The best way to build a billion-dollar finance company today is digital credit,” Saylor has argued in recent months, and he carried that thesis into one of Wall Street’s most established institutions. The booking itself was notable as Goldman Sachs, featuring the world’s largest corporatebitcoinholder as a headline speaker, signaled how far digital assets have moved toward mainstream client coverage and product development. Saylor’s core idea is that companies can borrow againstbitcoinholdings to issue yield-bearing instruments, turning avolatileasset into a source of durable income. By his logic,bitcoinbecomes both “digital capital” for balance sheets and “digital credit” for investors who want exposure without owning the coin outright. An $11 Billion Market Built From ZeroThe numbers behind the pitch have grown quickly given bitcoin-backed digital credit has expanded from effectively zero a year ago to more than $11 billion today, according to Saylor, financing that he says helped fund roughly 175,000BTCin purchases by Strategy through the currentbear market. Strategy itself now holds 847,363BTC, worth roughly $50. 9 billion as of late June, cementing its position as the largest corporate holder of the asset. Saylor has spent six years transforming the company from an enterprise-software vendor into a bitcoin-acquisition machine, and its MSTR shares are up more than 800% over five years. The centerpiece of the credit strategy is STRC, a perpetual preferred stock tied to the company’sbitcoinholdings. Bitcoin. comNews reported that STRC hasbecome the world’s largest preferred stock, reaching about $8. 5 billion in issuance in under a year. The company recently raised the instrument’s annual dividend rate from roughly 11. 5% to 12% to keep it attractive to income investors, part of a broader “digital credit” framework that lets Strategy monetizebitcointo fund dividends, interest and buybacks. Pressure Beneath the PitchSaylor’s latest message arrives at a strained moment given that earlier this week, Strategy’s enterprise value briefly fell below the market value of itsbitcoinholdings for the first time (a milestone that erased the premium investors had long paid for exposure to Saylor’s stack). The shift also sharpened questions about whether the company’s financial engineering can keep outrunningbitcoin’svolatility. Skeptics, including longtimebitcoincriticPeter Schiff, have warned that Strategy’s newer capital framework could eventually forcebitcoinsales to cover obligations if markets stay weak, a scenario Saylor has repeatedly downplayed. Even so, the company has kept buying,adding coins in small tranchesduring the downturn to reinforce its long-standing mantra of “steady accumulation“.