Strategy launches Bitcoin-backed securities credit model as digital credit reaches $14 billion

Strategy Inc. has introduced an interactive credit model for its Bitcoin-collateralized securities, which Michael Saylor said is intended to make Bitcoin-based “digital credit” more transparent to price because its main market risk is tied to observable Bitcoin data. The company’s Digital Credit Capital Framework, unveiled on June 29 and available at strategy.com/credit and through bitcointreasuries.net, lets users test yield, hedging costs and residual credit spreads using inputs such as Bitcoin price, volatility, interest rates and annualized return. Strategy said the market for these instruments has expanded to about $14 billion in 15 months, with STRC reaching an approximate valuation of $3.4 billion and yields ranging from 10.39% to 16.32% depending on the series.