Strategy Maps Bitcoin as Reserve Asset for Digital Capital Market

Strategy, an institutional investment firm, has released a revised guide for investors that maps Bitcoin into a broader financial system. The 21-page Bitcoin Investor Guide, updated on September 7, describes Bitcoin as the foundation of a new 'digital capital market' where equity, credit, debt, derivatives, and money can be created.

The company divides this emerging system into six layers: Digital Capital, Digital Equity, Digital Credit, Digital Debt, Digital Derivatives, and Digital Money. Bitcoin sits at the bottom as the reserve asset, while financial instruments with different risk and return profiles are built above it.

Strategy's own balance sheet increasingly resembles the architecture described in the guide. As of September 7, the company held 845,050 BTC, purchased for about $63.73 billion at an average cost of $75,412 per coin. The company spent $176.3 million repurchasing preferred stock and doubled its digital-credit securities buyback authorization to $2 billion.