- Michael Saylor says Bitcoin treasury companies should expand into credit markets to drive broader BTC adoption.
- Strategy's Strike and Strife are pioneering examples, targeting retail investors and retirees with Bitcoin-collateralized returns.
- Market-moving news hits Benzinga Pro first—get a 30-minute edge and save 60% this 4th of July.
Strategy MSTR executive chairman Michael Saylor has said Bitcoin BTC/USD treasury companies can tap massive credit markets to accelerate Bitcoin adoption beyond traditional equity strategies.
What Happened: At the BTC Prague event on Jue 25, Saylor and Blockstream CEO Adam Back unveiled a bold vision for the next phase of Bitcoin finance, going beyond equity-based capital raises into the realm of BTC-backed credit instruments.
Saylor argued that while equity offerings have helped fund BTC accumulation, the real breakthrough lies in creating scalable, credit-based financial products.
"The long-term durable business is to issue BTC-backed credit instruments" he said.
He pointed out that with Bitcoin delivering average annual returns near 55%, there's a clear opportunity to issue fixed-income instruments, paying 6–10% yields, while capturing spreads via BTC appreciation.
"As long as Bitcoin returns 20% or more, you can sell these instruments and swap into 20–40% returns," he noted.
Adam Back provided the technical foundation for this strategy, introducing the "months to cover" metric—tracking how quickly firms like Strategy can recoup capital invested in premium securities via BTC appreciation.
Back also teased tokenized equity markets on Bitcoin sidechains, enabling 24/7 BTC-denominated trading of treasury company shares without fiat FX conversions, potentially unlocking global participation.
Why It Matters: Strategy has already laid the groundwork with two preferred stock products: Strike STRK,which offers 8% dividend plus 40% upside exposure for growth-focussed investors, and Strife STRF that delivers 10% fixed yield with senior liquidation rights for retirees wanting stable income and low Bitcoin volatility.
Both are backed by Bitcoin collateral, not future company cash flows, an innovation Saylor argues gives them stronger backing than traditional corporate bonds.
"We have better collateral than investment-grade companies," he claimed, positioning Bitcoin as a disruptive force in credit markets.
Far from guarding the playbook, Saylor encouraged other companies to follow suit: "I invite you to copy it. The more Bitcoin-backed credit products exist, the more we legitimize this market."
He envisions a future where dozens of companies' issue Bitcoin-backed credit, accelerating the financialization of BTC and transforming how global credit markets operate.
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