Saylor Unveils Strategy for Dual-Product System: MSTR and STRC
Michael Saylor, founder of Strategy, outlined his company's core strategy in an article published on September 29. The strategy involves building a dual product system consisting of MSTR Digital Equity and STRC Digital Credit.
The goal is to create amplified Bitcoin exposure while holding ownership in a growing digital credit business through MSTR. STRC aims to reduce volatility, shorten duration, and deliver U.S. dollar yields.
Creating digital credit requires active management of the entire balance sheet, including decisions on capital, liquidity, priority, dividend yield, payment frequency, and investor terms. The company emphasizes that digital credit is a discipline requiring continuous practice: stripping away volatility, compressing duration, and extracting yield from Bitcoin capital.
The company centrally manages its balance sheet to create amplified exposure for equity investors and dampened exposure for credit investors, both dependent on the company's strength and execution quality. To achieve this goal, Strategy continuously manages each layer of its capital structure, including issuing and repurchasing STRC, segregating reserve funds from cash allocation, adjusting dividend rates, optimizing security terms, and pursuing shorter duration and longer payment runways.