According to Forbes, Michael Saylor, founder of MicroStrategy, delivered a speech at the New York Digital Assets Summit on March 26, defining "digital credit" as the core opportunity for the next phase of the crypto industry. Saylor highlighted MicroStrategy’s preferred stock product, STRC (ticker "Stretch"), describing it as a low-volatility, high-yield fixed-income instrument with a current annualized yield of 11.5%, volatility of approximately 2%, a Sharpe ratio nearing 4, a notional value of $5 billion, and average daily liquidity of around $224 million—reaching institutional trading scale. Saylor noted that STRC’s volatility is lower than that of bonds, the S&P 500, gold, Microsoft, Google, and Bitcoin itself. Concerns have been raised externally about STRC’s sustainability, with critics arguing that its returns depend on continued Bitcoin price appreciation and MicroStrategy’s ability to secure favorable financing; the model may face stress during market downturns.
Strategy Founder Predicts Digital Credit as the Next Stage for the Crypto Industry
TechFlowShare
Summary
At the New York Digital Asset Summit on March 26, Strategy founder Michael Saylor said the crypto market’s next phase will center on digital credit. He highlighted STRC, a Strategy product offering an 11.5% annualized yield, 2% volatility, and a Sharpe ratio nearing 4. STRC has a $5 billion nominal value and $224 million in daily liquidity, reaching institutional scale. Some question whether STRC’s returns are sustainable, as they depend on Bitcoin’s price appreciation and Strategy’s access to favorable funding.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.