Strategy's STRC Outperforms SPY in Volatility, a Milestone for Digital Credit

Strategy's Michael Saylor claims that the company's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) has become less volatile than the SPDR S&P 500 ETF Trust (SPY) over the past 30 days. This milestone is significant for digital credit, according to Saylor. STRC's 30-day historical volatility has fallen to 9%, below the 10% on the SPY.

Saylor's chart measures STRC against various asset classes, including Strategy's own common stock, Bitcoin, gold, and bond funds. The chart shows that STRC is now above the Vanguard Total Bond Market ETF (BND), which was previously the only line below it. STRC's volatility has fallen from 2% in March to 9% currently, while the SPY has seen a slight increase in volatility from 15% to 10% over the same period.

Saylor emphasizes that digital credit, represented by STRC and rival Strive's SATA, competes with private credit, high-yield bonds, and bond ETFs for income allocations. He believes that the preferred belongs in an income investor's bond sleeve, not in a crypto allocation. STRC's ability to reduce price volatility for income investors while harnessing the power of Bitcoin is a key aspect of Saylor's strategy.