TechFlow News, March 27: According to a Forbes report, Michael Saylor, founder of Strategy, delivered a speech at the New York Digital Assets Summit on March 26, defining “digital credit” as the core opportunity for the next phase of the crypto industry.
Saylor highlighted STRC, a preferred stock product launched by Strategy (ticker symbol: “Stretch”). He described STRC as a low-volatility, high-yield fixed-income instrument currently offering an annualized yield of 11.5%, with volatility of approximately 2% and a Sharpe ratio nearing 4. Its notional value stands at $5 billion, with average daily liquidity of about $224 million—reaching institutional trading scale. Saylor stated that STRC’s volatility is lower than that of bonds, the S&P 500 Index, gold, Microsoft, Google, and even Bitcoin itself.
External observers have raised concerns about STRC’s sustainability, arguing that its returns rely on continued Bitcoin price appreciation and Strategy’s ability to secure financing on favorable terms; the model may face pressure during market downturns.
