Saylor pitches ‘digital credit’ as MicroStrategy loans top $11B

Michael Saylor used a late‑June appearance at Goldman Sachs’ Digital Assets Conference in London to pitch bitcoin as a form of ‘digital credit’ to institutional clients and investors.

MicroStrategy has used bitcoin-backed credit products to help fund roughly 175,000 BTC purchases during the bear market and now holds 847,363 BTC, worth about $50.9 billion as of late June.

Saylor described a structure in which companies borrow against bitcoin holdings to issue yield-bearing instruments. Under that approach, firms keep ownership of the coins while offering investors fixed or income-style returns linked to the underlying bitcoin position.

The main instrument tied to MicroStrategy’s strategy is STRC, a perpetual preferred share whose payments are linked to the company’s bitcoin. STRC has reached about $8.5 billion in issuance and the firm raised its annual dividend from roughly 11.5% to 12% to appeal to income-focused investors. MicroStrategy says proceeds from such instruments fund dividends, interest costs and share buybacks while the company continues to buy bitcoin.

Earlier this week MicroStrategy’s enterprise value briefly fell below the market value of its bitcoin holdings, removing the premium investors had long paid for the stock’s bitcoin exposure. That shift intensified questions about whether borrowing against bitcoin can withstand sustained price declines. Critics, including Peter Schiff, warned the structure could force asset sales if markets weaken; Saylor has repeatedly downplayed that scenario.

MicroStrategy continued to acquire bitcoin in small tranches during the downturn, following a stated policy of steady accumulation. Over six years the company shifted its focus from enterprise software to building a bitcoin position, and MSTR shares have risen more than 800% over five years.

Saylor told the Goldman audience he discussed ‘Bitcoin, digital credit, and the future of capital markets.’ The company’s disclosures show credit arrangements contributed to a large portion of recent purchases, making MicroStrategy one of the largest corporate holders of bitcoin.