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Saylor Names Solana And Ethereum As Future Of Digital Credit

Michael Saylor used his Strategy World 2026 keynote on Feb. 25 to argue that Bitcoin-backed “digital credit score” is shifting past Wall Street wrappers and towards programmable distribution on crypto rails, naming Solana and Ethereum as a part of that future. The pitch issues as a result of it pushes Strategy’s Bitcoin treasury model right into a broader product thesis: use Bitcoin because the capital base, then package deal credit score, yield and liquidity for corporates, retail traders and finally tokenized markets.

Bitcoin Capital, Credit Product

Saylor framed Bitcoin as the inspiration of the stack and Strategy’s Stretch (STRC) because the credit score layer constructed on high of it. In his telling, the corporate’s enterprise is not simply accumulating Bitcoin, however “changing capital into credit score” through the use of long-duration capital buildings to strip money circulate from a unstable asset and ship it as a steadier yield product.

“What is Strategy doing? Our firm is changing capital into credit score. We’re changing financial wealth right into a stream of money flows,” Saylor mentioned. “You want an working firm with a view to take a block of financial power and switch it right into a foreign money, peg it to a foreign money, strip away the danger, damp the volatility, extract the money flows within the type of yield and compress the period to now.”

That framework sits on the heart of his case for STRC. Saylor mentioned Strategy arrived there solely after working by way of what he described as more and more durable forms of leverage, from change leverage and margin loans to senior debt, junior debt, convertibles and most popular buildings.

The key variable, in his view, isn’t just headline maturity, however the “stochastic period” of capital, how lengthy an organization can realistically depend on it earlier than covenants, mark-to-market stress or refinancing stress power an issue.

He argued that variable most popular credit score supplied the most effective compromise in need of widespread fairness as a result of it maximized optionality and decreased the danger of getting squeezed out of the place throughout a drawdown.

Saylor additionally laid out a easy quantitative case for digital credit score. Strategy, he mentioned, makes use of three inside metrics: BTC score, or collateral protection; BTC danger, the chance that collateral falls beneath required ranges by the tip of the time period; and the implied credit score unfold wanted to compensate traders. He contrasted present benchmarks of 78 foundation factors for investment-grade bonds and 288 foundation factors for high-yield debt with what he mentioned digital credit score may ship if Bitcoin compounds quicker than conventional property.

His mannequin relies upon closely on a constructive view of Bitcoin’s long-run returns. If Bitcoin appreciates at 30% yearly, Saylor mentioned, sizable volumes of investment-grade credit score will be created in opposition to it. If Bitcoin goes nowhere, the identical construction begins to appear to be distressed debt.

He used current efficiency to sharpen that distinction. Since Bitcoin’s all-time high about 4 and a half months in the past, Saylor mentioned, Bitcoin had fallen 45%, whereas STRC had misplaced “0% of its worth” and paid 4.5% in dividends by way of the drawdown. That, he argued, is the industrial opening: provide a much less unstable yield instrument to patrons who need Bitcoin-linked economics with out proudly owning the asset outright.

Solana And Ethereum As Distribution Rails

The keynote’s most consequential flip got here when Saylor described digital credit score as “programmable.” He was not utilizing the time period narrowly.

“Programmable means I take the credit score and I create it. I flip it right into a token, a personal fund, a public fund, an ETF, an ETP. I make it a checking account. I make it a crypto account,” he mentioned. “Then I put it on a platform — the NASDAQ, the London Stock Exchange, Solana, Ethereum, Binance, Coinbase Base. There are quite a lot of completely different platforms I can put that on.”

He went additional, arguing that after credit score is packaged as a modular product, issuers can tune volatility, liquidity, staking durations, payout frequency and foreign money publicity. In that framework, Solana and Ethereum should not the capital base (Bitcoin stays that in Saylor’s mannequin) however potential rails for distributing tokenized variations of the credit score product.

That leaves Strategy with a bigger ambition than merely promoting most popular inventory. Saylor mentioned the corporate intends to deepen STRC liquidity and scale the underlying asset base, whereas companions construct “digital money” and “digital yield” merchandise round it.

If that thesis holds, Strategy is betting Bitcoin-backed credit score can transfer from a public-market area of interest right into a cross-platform product class spanning brokerages, ETFs and on-chain ecosystems.

At press time, Solana traded at $86.97.

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