Michael Saylor delivered a 47-minute speech at the Bitcoin 2026 conference. Description STRC is a digital credit instrument built on Bitcoin. Saylor defined Bitcoin as human-designed capital, and STRC as a structure that transforms capital returns into income.
During the event, Thaler said STRC is composed of a combination of existing financial instruments, including publicly listed companies, perpetual preferred shares, and monthly floating dividends.
Bitcoin returns drive the STRC credit model
Thiel said none of these components are new. He said the innovation lies in integrating them into a credit product tied to Bitcoin’s long-term returns.
The historical performance of Bitcoin is central to the argument. Thaler notes that Bitcoin has delivered an average annual return of approximately 38% over five years, making it possible for STRC credit investors to receive an 11% dividend.
He stated that the payment amount for credit products cannot exceed the income generated by their collateral assets. Theoretically, the yield on gold can reach around 16%, while the yield on real estate can reach around 6%. In his view, Bitcoin can enable a higher digital credit model.
During the speech, Thaler categorized investors into two groups. Capital investors can tolerate volatility and wait several years for returns. Credit investors require stable cash flow, lower volatility, and stronger principal protection.
According to Thaler, Bitcoin meets the needs of the first group. STRC is designed for the second group, including retirees, institutions, companies, and investors who require regular income rather than long-term price exposure.
Under the structure he described, STRC converts Bitcoin's capital returns into monthly cash flow. Thaler stated that a 5:1 collateralization ratio can protect credit investors' equity even if Bitcoin's price drops by 80%.
According to Thaler, STRC managed $8.5 billion in assets within just nine months. Thaler also noted that STRC’s average daily liquidity approached $400 million, with a volatility of 2.9% and a Sharpe ratio of 2.7.
According to Thaler's data, retail accounts make up 80% of STRC holders. He estimates that approximately 3 million households are currently benefiting from this product.
According to the presentation, BlackRock and VanEck also hold STRC in their credit funds, listing it as their third-largest position. Saylor stated that these holdings represent 2% to 6% of their entire credit index.
Increased STRC demand, tax incentives, and expanded reward programs
Monthly demand fluctuated sharply within the year. Demand approached $500 million in January, dropped to $80 million during the Bitcoin price decline in February, rebounded to $1.5 billion in March, and reached $3.5 billion in April.
The shelf registration for the strategy is another key point. Saylor stated that the company has established a $21 billion shelf registration for STRC, surpassing the previous record of $500 million for credit instruments.
However, the treatment of dividends also played a key role in the report. Thaler stated that STRC’s dividends were classified as a return of capital, allowing for deferred taxation rather than immediate taxation.
Saler outlined a three-layer framework. Bitcoin is described as digital capital, while STRC is described as digital credit. Digital currencies and yield products are built on top of STRC.
Apyx, Saturn, and Hermetic are cited as exemplars of third-layer projects. Saylor estimates that the downstream STRC tokenized ecosystem has reached approximately $200 million and predicts it could reach $1 billion within four to eight weeks.
The proposal details also include a potential change to the dividend plan. If shareholders approve the plan, STRC may change the dividend frequency from monthly to biweekly. Voting will conclude in early June.
Related:Thaler initiates a vote to propose changing STRC dividend payments to biweekly