4 days ago
Strategy enforcement president Michael Saylor said Bitcoin does not request staking, ostentation oregon protocol-based output mechanisms, arguing returns should travel from fiscal products built astir BTC.
In an X station connected Tuesday, Saylor outlined a five-layer “Digital Asset Stack” positioning Bitcoin (BTC) arsenic the basal for credit, money, output and equity structures.
Saylor said Bitcoin should stay “pure integer capital” and that it “does not request to go Ethereum” to make capitalist returns.
The model reinforces Strategy's attack to Bitcoin arsenic a treasury reserve asset, wherever returns are generated done fiscal products built astir the company's Bitcoin holdings, the largest among publically listed firms.
Digital recognition and output layer
Saylor's model is centered astir "digital credit" arsenic fiscal instruments built astir Bitcoin holdings, designed to make returns portion reducing vulnerability to BTC terms volatility.
Under this structure, Bitcoin serves arsenic collateral, portion equity absorbs astir of the terms hazard and recognition instruments person much unchangeable returns.
Source: Michael Saylor
Saylor repeatedly referenced Strategy-style securities specified arsenic STRC, the company's perpetual preferred stock, positioning them arsenic a cardinal illustration of “digital credit.” In this framing, STRC-like instruments are not conscionable institution products but examples of a broader plus people built connected apical of Bitcoin done superior markets engineering.
Saylor argues recognition instruments tin creaseless Bitcoin's terms swings
Saylor said Bitcoin’s volatility is “not a flaw,” framing it arsenic a earthy diagnostic of “high-energy capital” that tin determination sharply due to the fact that it is scarce, planetary and traded astir the clock. In his model, instruments similar STRC are designed to damp those terms swings by sitting supra Bitcoin successful the superior structure.
While Saylor did not straight sermon STRC’s volatility successful the X post, helium said recognition instruments tin acquisition varying levels of hazard depending connected factors specified arsenic marketplace stress, liquidity and capitalist demand.
Related: Saylor’s Strategy buys 1,587 BTC for $100M, holdings deed 846.8K
“The important constituent is not that integer recognition ever has 1 fixed volatility number. It does not,” Saylor said.
Strategy’s preferred banal STRC closed astatine $95.20 connected Monday, down 1.45%, according to Nasdaq data. The banal has a $100 stated par worth and is structured to commercialized adjacent that level.
Cointelegraph’s Ciaran Lyons (left) and Strategy laminitis Michael Saylor (right) astatine BTC Prague. Source: Cointelegraph/YouTube
The remarks reenforce Saylor's framing of Bitcoin arsenic "digital capital" and Strategy's relation successful issuing "digital credit" built astir it, including the presumption that Bitcoin income are sometimes required to enactment the structure.
“If the company's argumentation is that we won't merchantability the Bitcoin, past the recognition won't person worth and the equity won't person value,” Saylor told Cointelegraph astatine the BTC Prague league past week.
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