Saylor Sees STRC as Credit Instrument with Bitcoin as Anchor
Michael Saylor, Executive Chairman of Strategy, believes that a 20% annual rise in Bitcoin would be enough to cover STRC's 12% annual dividend. This expectation is based on the company's assumption that Bitcoin will appreciate by 20% to 30% per year in the long term. According to Saylor, STRC should be viewed as a credit instrument, not a product that requires investors to take on Bitcoin's full volatility.
In his view, STRC offers higher yields than traditional investments such as bank preferred shares, high-yield bonds, and private credit. The company aims to maintain relative price stability through a mechanism of buying back or issuing shares around the $100 level. Saylor linked STRC's credit base to the company's large Bitcoin reserves, stating that the goal is to convert part of the asset's value into a relatively stable income-generating instrument.
The company's use of Bitcoin exposure to support a product with a profile closer to credit and income is a key aspect of STRC's financial logic, according to Saylor. This approach frames STRC as a unique investment opportunity in the current market.