Saylor: Strategy's STRC Now Steadier Than SPY, a Milestone for Digital Credit

Michael Saylor, CEO of Strategy (MSTR), claims that his company's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) has become steadier than the SPDR S&P 500 ETF Trust (SPY). According to a recent chart, STRC's 30-day historical volatility has dropped to 9%, which is lower than SPY's 10%. This achievement is seen as a milestone for digital credit.

Saylor explained that Strategy's preferred stock competes with private credit, high-yield bonds, and bond ETFs for income allocations. He emphasized the importance of reducing price volatility for income investors while harnessing the power of Bitcoin.

The chart also measured STRC against other major asset classes, including gold (GLD) and the Nasdaq-100 index (QQQ). Strategy's own common stock was the most volatile line at 94%, with Bitcoin at 39%. The Vanguard Total Bond Market ETF (BND) came in at 5%, placing STRC between stocks and bonds on its own chart.

Saylor believes that digital credit, which includes STRC and rival Strive's SATA, has the potential to compete with traditional asset classes. He cited figures from SIFMA, which estimate that a tenth of one percent of either global equity market capitalization or fixed-income debt would be roughly $160 billion.