- Michael Saylor has placed Bitcoin, Strategy’s STRC, Solstice’s SR-strcUSX, and Tether’s USDT on a single volatility-to-stability scale.
- STRC sits in the middle as “digital credit,” a 12% variable-rate preferred stock Strategy funded by recycling Bitcoin.
- The framework arrives as STRC exposure spreads, reaching Solana through Solstice’s tranched vault and Brazil via OranjeBTC’s B3-listed DIGY11 ETF.
Strategy (NASDAQ: MSTR) chairman Michael Saylor has mapped Bitcoin, two of his company’s yield products, and Tether onto a single monetary scale.
Observers are saying Saylor is trying to tell investors which digital assets to hold for growth and which to hold for stability; however, he did not confirm it.
Four labels, one sliding scale
Saylor shared his thoughts in a post on X on August 13, where he classified assets from most volatile to most stable.
Bitcoin was one of the assets that Saylor labels as “Digital Capital.” Saylor classified Strategy’s STRC as “Digital Credit,” the SR-strcUSX token as “Digital Money,” and Tether’s USDT as “Digital Currency.”
The assets were arranged on a table, with Bitcoin starting from the left, followed by STRC, SR-strcUSX, and USDT, with Saylor stating that volatility and return potential drop rightward, while stability and everyday usability rise.
Per Saylor, Bitcoin is the ultimate store of value, while a stablecoin like USDT is the ultimate medium of exchange in the digital economy. The two Strategy-linked instruments filled the space in between them.
Where does STRC sit in all of these?
STRC, nicknamed “Stretch,” is the piece doing the heavy lifting in Saylor’s middle tier.
It is Strategy’s variable-rate perpetual preferred stock, currently paying a 12% annual cash dividend in twice-monthly installments. Strategy’s board sets that rate and must declare each payment, and the stock can keep distributing cash even as its market price slides.
Saylor now brands it as digital credit, and he says it is a semi-stable, high-fixed-income store of value. He stated that financial engineering is what transforms digital credit into digital money.
Saylor wrote, “Digital Money combines the technology of Digital Currency with the economics of Digital Capital: stability, income, transactional utility, and a Store of Value.”
However, this is not the first time that Saylor is mentioning digital credit. On August 7, he told his followers that anyone hunting for “the next billion-dollar unicorn business in finance” should “study digital credit.”
Strategy, which holds a corporate Bitcoin treasury, has been recycling BTC into these preferred shares. The company sold 1,690 Bitcoin for $108.6 million on August 10 and used the cash to buy back roughly 1.15 million STRC shares, leaving it with 840,447 BTC.
The bridge lands on Solana
Saylor’s “digital money” tier points at strcUSX, a product that Solstice Finance put on Solana this week. Solstice Finance, which describes STRC as the link between Bitcoin and stablecoins, built a vault that hands users exposure to STRC’s dividend income and price risk without handing them the shares themselves.
Depositors put in Solstice’s USX settlement token and receive one of two tranches. The senior token, SR-strcUSX, gets paid first and aims for a 7% annual yield. Solstice calls it the first STRC-linked instrument on Solana.
Digital credit heads to Brazil
A few hours before he posted about digital assets on a monetary spectrum, Saylor had written about digital credit going to Brazil. He was responding to OranjeBTC’s announcement that it is launching DIGY11, which it calls “the first ETF of preferred shares from the Bitcoin ecosystem with monthly distributions.”
Saylor said that DIGY11, a B3-listed ETF, will carry STRC into Brazil with monthly payouts in reais, daily liquidity, and currency hedging.
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FAQs
What are the four categories in Saylor's digital asset spectrum?
Saylor labeled Bitcoin as "Digital Capital," Strategy's STRC as "Digital Credit," SR-strcUSX as "Digital Money," and Tether's USDT as "Digital Currency," ordered so that volatility and return fall while stability and transactional utility rise.
What is STRC and what does it pay?
STRC, nicknamed "Stretch," is Strategy's variable-rate perpetual preferred stock that currently pays a 12% annual cash dividend in twice-monthly installments, though the rate is set by Strategy's board and each dividend must be declared.
How can investors access STRC through DIGY11 in Brazil?
DIGY11 is a B3-listed ETF from OranjeBTC that holds STRC and Strive's SATA, makes monthly distributions in reais with FX hedging and daily liquidity, and is scheduled to debut on Brazil's exchange in early September.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
