Michael Saylor Just Exposed The Move That Blindsided Wall Street!

Ajouté : 2026-05-25

[00:00:00]First uh I want to talk about digital credit.

[00:00:03]Uh digital credit is based on digital capital. And so we wanted to create the best credit in the world. How do you create the best credit, the highest yielding credit? Well, you need the best performing asset. So you see, Bitcoin's been outperforming the S&P and gold and and NASDAQ for quite a while. And we started thinking, can we carve a credit instrument out of uh Bitcoin?

[00:00:28]Now, it turns out the volatility of all these assets is quite high. And so, the impediment to spreading Bitcoin to the world is 40 V is too much for most investors. And without the cash flows and with the V, it's a difficult sell.

[00:00:45]Believe me, I know. I have spent thousands and thousands of hours doing this. What if the next financial revolution isn't coming from Wall Street, but from Bitcoin quietly transforming itself into something far bigger than most people realize? At Consensus 2026 in Miami, Michael Sailor didn't just talk about Bitcoin as digital gold. He introduced something far more disruptive, digital credit. And if he's right, this could completely change how capital moves through the global economy. For years, critics argued that Bitcoin was too volatile, too dangerous, too unstable for serious finance. Even many Bitcoin supporters believed its only role was price appreciation.

[00:01:29]But Sailor is making a different argument now. He believes Bitcoin's volatility itself can be engineered into a new form of yield, a new kind of financial energy. That's the contrarian twist nobody expected. While traditional banks struggle under rising debt, weakening bonds, and collapsing trust in fiat systems, firms tied to Bitcoin are quietly building instruments designed to compete directly with the $300 trillion global credit market. Not by replacing Bitcoin's upside, but by extracting stability from its chaos. And the numbers are forcing people to pay attention. Sailor claims products linked to Bitcoin credit are already outperforming money markets. hedge funds and even some traditional fixed income assets on a riskadjusted basis. Black Rockck institutions, corporations, and retail investors are beginning to circle around the idea. Not because they suddenly became Bitcoin maximalists, but because the math is becoming harder to ignore. But there's another side to this story. If Bitcoin truly evolves from a speculative asset into the foundation of digital capital markets, then this isn't just a crypto narrative anymore. It becomes a direct challenge to the existing financial system itself. And that's where the real tension begins.

[00:02:50]Listen carefully because what Michael Sailor is about to reveal isn't just another Bitcoin idea. It's a completely different way of seeing money, wealth, and the future of the financial system itself.

[00:03:06]>> So, what's the idea of digital credit?

[00:03:09]The idea is you use a capital gain uh to fund a credit dividend. We strip a certain amount of yield out of the capital gain.

[00:03:20]And so, if you think you're getting 30%, you can extract 11. uh if you think you're getting 6% from real estate, you could pay a dividend of three. And so, as you can see, Bitcoin's the highest performing capital and so we can pay the highest dividend.

[00:03:39]What else do you need to create uh asset back credit? Well, you need a lot of assets and so you need a lot of equity capital. And the thing about strategy, my company, is we've got about $68 billion worth of capital and we've got an $85 billion enterprise. So when you have a tower of equity, the question becomes, how are you going to get yield on it? What are you going to do with all that capital? And what we realize is the killer app for Bitcoin is digital credit. That is we don't borrow against it in a conventional way. We sell the credit into the trady, the traditional capital market, and we offer a yield.

[00:04:22]And for every dollar of capital, you can probably sell 20 cents of credit a year.

[00:04:27]So you want to create 20 billion of credit. You want to start with a 80 or hundred billion dollars of capital.

[00:04:35]The big advantage we had is we had a big equity capital market. We have $3 billion in trading in the equity market.

[00:04:41]We have a massive derivative market.

[00:04:44]Some people don't know, but MSTR trades more than IBIT. Our open interest is more than uh than IBIT's open interest.

[00:04:53]So, we've got the equity capital traders and the derivative traders supporting this security. And then we wanted to use this to create credit. What's credit?

[00:05:04]Well, we take a block of capital. We strip the currency risk. We strip the credit risk. We strip the duration risk.

[00:05:11]We damp the volatility and then we distill a yield. So, think of it as taking a barrel of crude oil, putting it through a a reactor and coming out with kerosene, right? Uh digital credit is like monetary fuel.

[00:05:29]If you have a a volatile capital asset, you know, it's a 30 or 40 vault, you've got this, you know, crazy roller coaster. What we're doing is we're extracting that first 11% And most people they they want to compound their wealth comfortably. They don't want to risk their principle. They just kind of want to compound their wealth progressively without a massive draw down. So what happens if you actually process that signal and you create 11%.

[00:06:00]Well, you have excess energy, excess volatility. Where does it go? It goes to the equity. And so when we the very act of creating the credit actually creates a digital equity that is actually more volatile and higher performance than the capital asset. Hence MSTR is amplified Bitcoin. Uh STRC is is Bitcoin credit.

[00:06:26]Does it work? I show you the theory.

[00:06:29]This is the actual result. This is five 5.75 years of data. You can see since uh August of 2020, Bitcoin's up 40%. MSTR is up 60%.

[00:06:42]Notice where STRC is. That's your credit. So, what we're doing is we're straddling both sides of a capital asset. There's a set of people that want leverage and performance in the roller coaster, like strap on the rocket, pull the G's. And there's another set of people that just want to live happily ever after comfortably and they'll give up the excess performance and we're giving them both.

[00:07:08]So what is it? Well, um we're really just combining things that have been around. A listed public stock, a listed digital capital, Bitcoin that you can trade, a listed preferred stock, a variable monthly dividend on a preferred a return of capital treatment.

[00:07:26]It's a hundred-year-old tax code and an actively managed ETF. If you put them all together in one instrument, you can create digital credit.

[00:07:34]What is it? It's doubledigit returns, tax deferral. It's all the benefits of equity. It's low volatility and capital preservation. All the benefits of credit all in one instrument. If you don't need your money for four years, I would say buy Bitcoin and hold it forever. But if you need the money in the next four months to pay your kids tuition or if you need working capital or to pay taxes, you can't afford to take that risk, you're going to you're going to want a credit instrument. So STRC is like short-term money. BTC is long-term commodity. And then if you're an equity investor and you want amplification, you would buy the common stock.

[00:08:15]What's unique here we discovered is that if you actually use unrealized capital gains to pay a credit dividend, the dividend becomes tax deferred. That's called return of capital. We inadvertently created the most uh the most efficient scalable generator of tax deferred fixed income in the world. We weren't trying, we just tripped over this.

[00:08:38]How's it working? Uh, Stretch has got $375 million of liquidity a day. We got the V from 40 down to three. Um, it has grown uh to $8.5 billion of AUM.

[00:08:55]It's growing at 340% a year. It's hyperrowth. It's the most uh successful financial instrument of the year. Why is it growing? Uh, and how is it growing?

[00:09:08]Well, it's growing because it's powered by the crypto economy and by the volatility of 24/7 365 digital assets.

[00:09:17]It's now the biggest preferred stock in the world in the world in 8 months. It's also the most liquid preferred stock in the world in a few months. It's also the highest turnover preferred stock in the world.

[00:09:30]So we created something which turbocharged the entire economy of preferreds.

[00:09:37]In the last six months, Bitcoin traded down 37%. If you're a capital investor, you get no yield and you take the 37% hit. If you're a credit investor, you got 6.4% in dividends and you held par.

[00:09:51]So if you're wondering why would you want to own it? Well, that chart illustrates exactly why you would want to own it.

[00:09:58]stretch is new. It you can see it's seasoning and in the last 3 months it's been in the trading range 100% of the time. So it's really just the past 3 months that this thing is clicking and coming to life.

[00:10:13]The liquidity has grown 7x in 5 months and it keeps building.

[00:10:21]Why?

[00:10:22]Well, because the money market pays you 3 12%.

[00:10:26]Private credit pays you eight and a half percent. Stretch pays you 11 and a.5%.

[00:10:32]If you're a retail investor, if you pay taxes in the US, that's a tax equivalent yield of 18% in Miami.

[00:10:41]How does it compare to the rest of the world? Well, stretch is like the risk-free rate in the crypto economy. If you're looking for the free market risk-free rate, it's 11 12% and it compares to, you know, nothing in yen or or Swiss Franks. But now, if you look at this chart, you see there's a mother of all arbitrage opportunities here. If you're looking for the carry trade, you borrow at 2% in euros and you invest in stretch. You catch the difference. If you're a DeFi trader, imagine looping 2% to 11 and a half percent capturing 9 and a half percent times 10.

[00:11:19]Now 10% 10x leverage sounds dangerous on a 40V asset. But what if I give you a twovall asset? At two, you can 10x lever and the and the volatility is like the S&P index, but you captured 95% yield.

[00:11:35]Okay, so this is very interesting.

[00:11:37]What's going on here? If you live in New York City, stretches like a bank that pays you 24%.

[00:11:44]Why wouldn't you want that, right? I mean, same in San Francisco.

[00:11:50]Now, if we look at risk adjusted rates with the sharp ratio is you take the yield, you subtract the risk-free rate, you divide by the volatility. What you can see is stretch has got the highest sharp ratio of any credit instrument in the world by an order of magnitude.

[00:12:05]Money markets have a negative sharp ratio.

[00:12:08]Stretch has got a higher sharp ratio than any equity you can buy. It's, you know, actually this is an asset than any asset you can buy like the S&P or Bitcoin.

[00:12:18]Stretch outperforms Nvidia, right? Um, and finally, if you go to a hedge fund and you paid them 2 and 20, Stretch outperforms every hedge fund strategy publicly disclosed by every hedge fund. And so, how is this interesting? It's interesting because the hedge funds lock up your money, charge you a fee, take a carry, and take heterogeneous risk.

[00:12:43]Stretch is liquid, no fee, zero fee. You can get in and get out whenever you want. It's homogeneous. It's transparent. We update the risk every 15 seconds.

[00:12:56]So, digital credit is really attacking the credit markets. And there's no reason why it won't transform 1% 2% 10% of a $300 trillion credit market cuz everything else compared to stretch is like return-f free risk.

[00:13:12]Now how does it impact the ecosystem?

[00:13:15]There's an explosion of interest.

[00:13:17]There's retail interest. There's corporate interest. There's institutional investors buying it.

[00:13:22]There's cryptonative firms building on it. And there's tradi in uh innovators building on it.

[00:13:30]So, first of all, Stretch is distributed through all retail brokers. It trades on NASDAQ. You can buy it on Schwab, Robin Hood. Vanguard doesn't let you buy Bitcoin, but they let you buy Stretch.

[00:13:41]And so, we've used it to get to every traditional conventional investor.

[00:13:46]80% of Stretch out of the gate is retail. Massive retail following. Just like crypto is retail, Stretch is retail. It's going viral. Everybody tells their friends, their family, their parents. Because why wouldn't you? I mean, who doesn't want to retire and get paid 11% and not get taxed on it? Like, why wouldn't you want to do that? Um, corporations are using it as part of their corporate treasury. Instead of 3% taxable or 2% after tax, it's 11% tax deferred.

[00:14:18]It's number two in the credit indexes of Black Rockck and Van in the first eight months. So, it's really crawling up and it's embedded in all of these other uh all these other fixed income funds.

[00:14:31]There are a lot of ETF developers that are building on top of it. So, you're going to see it in public funds. But now I get to the most interesting part of my presentation because I think the compelling thing about digital credit is it is the stepping stone to digital money and digital yield. And that's where everybody in this room ought to be interested because this is your business.

[00:14:54]What we've done is taken digital capital which is too volatile with no yield.

[00:15:00]We've converted it into a threevall 11% yielding credit instrument by stabilizing it with billions of dollars actually $60 billion worth of equity capital.

[00:15:16]And now the opportunity is at layer three to create digital money or digital yield.

[00:15:23]And what do I mean by that? I mean money is zero volatility daily liquidity instruments with yield. Um and uh digital yield is maybe nonzero volatility or maybe a liquid staked yield.

[00:15:39]So how do you create this? You can create a token, a private fund, a public fund. You can offer it on a bank. you can offer on a crypto exchange. You can program the volatility from 0 to 10. You can program the yield from 5 to 25 or even more. You can program the liquidity. And you can transform the currency.

[00:16:00]Lots of people might do it. You can, you know, you could do it as a bank, a Wall Street operator, or maybe most interesting, a crypto entrepreneur or or a startup or or any innovator.

[00:16:14]If we give you three v 11% credit, you can step it down to zero all 5% money or six or eight or or nine. Or you can step it up, lever it three or four times and make it a 25% instrument. If you want it liquid every day, it'd probably be 25% instrument with with eight. But if you want to make it a lock up for a month, it might very well be zero vol one month liquidity 25% yield.

[00:16:44]Who needs it? The stable coin market, right? It's $350 billion. It's all starved for yield. How are you going to actually put yield on this?

[00:16:55]There's crypto native yield. It's endogenous. Uh when activity explodes, it expands. And when activity contracts, it it uh it contracts.

[00:17:05]There's also exogenous yield. And and here digital credit competes with treasuries. The challenge with uh endogenous yields is they're reflective.

[00:17:15]So in a bull market you'll get good yields but in a bare market the yields compress.

[00:17:20]On the other hand the benefit of treasuries is it's external. But the problem is if your cost of capital is 3% and then the the asset pays 3% then their net yield is zero. And then so if you if you lever up 10 to one on zero it's 10 time zero. It's just zero right?

[00:17:38]There's nothing there. What you want to do is start with uh three and a half% money and then lever on 11 a.5% yield.

[00:17:49]Now you get a net 800 basis points.

[00:17:51]Lever that 5 to1 and you can actually create a 40% yielding instrument. And that's what stretch represents. It's an external source of power, right? This is financial fuel for DeFi and financial fuel for digital assets like kerosene.

[00:18:07]you figure out what to do with it. Now, we're already equity backed. We've got nearly $5 of capital for every dollar of STRC. So, it's way over collateralized.

[00:18:20]So, we're giving you an equity buffer.

[00:18:22]And our company is managing to keep STRC trading around 100. And that means raising billions of equity capital, buying billions of cash, raising the dividend, adjusting the ATM. So, that's what we do. What happens next though is is what you do, what anybody else does.

[00:18:43]We're offering this transparent, institutional, highly liquid yield instrument.

[00:18:50]You go to our website, we update it every 15 seconds, so you can see exactly how much capital we have. We make SEC filings every Monday morning. You can see when we've raised more capital. You can calculate and see the sharp ratio.

[00:19:04]You can you can see the price and where it settles. We've even published our credit models. You can actually go here and and estimate the credit risk of these instruments and it's updated every 15 seconds. You put in all your forward expectations of Bitcoin and Ball and the like.

[00:19:23]What's the upshot of this? Well, capital is going to flow to the superior yield.

[00:19:28]And so DeFi is better than tradi, but digital yield back by stretch is going to be better than than DeFi yield with endogenous sources.

[00:19:39]We've got transparency. You can see that as a public company.

[00:19:45]And who's doing this now? There's an explosion of innovation in the DeFi economy right now. You can see Apex or Medica, Kraken, Ono, Pendle, Roxom, Saturn, the Spread, Strata. They're all doing very interesting things.

[00:20:04]They're moving faster than Tradfi innovators. There are a lot of trad in innovators, but in my experience, the DeFi innovators seem to go about 10 times faster and uh they're a little bit more sophisticated. So in 8 weeks we've gone from nothing to 270 million just in the DeFi space.

[00:20:23]Uh stretch was uh 1.2 billion in in or 1.5 billion in sales in March, 3.2 billion in April. So you can see this entire thing is exploding.

[00:20:38]What why am I excited? Because I think digital credit is the bridge between Bitcoin and crypto, between trady and DeFi. It solves a lot of problems uh in the in the crypto space and the DeFi space, but it also uh leverages all of our Trady assets as well. And so now you can see Bitcoin is the digital capital layer, stretch is the digital credit layer, you've got a layer three, and then if you take these um these tokens and put them into applications, you create all sorts of interesting things.

[00:21:13]So the way we see it is stretch is a platform to create apps.

[00:21:20]Digital money and digital yield are some of the apps. Lots of people are building them now. And uh I would submit stable coins are zero vault, zero yielding instruments. They're good for a medium of exchange, but they're not a good store of value. They don't really make you don't want to have that collateral tied up for a year in a prediction market or in a DeFi or a futures trade. Yield coins are zero of all 8% yielding, seven or 9% yielding.

[00:21:55]You can build them in dollars, euros, yen, but wouldn't you like a yield coin that looks like a stable coin that pays you that's backed by Bitcoin? And that's what we've done. Stretch creates yield coins. And right now, you already see Apex creating it. You already see Saturn creating it. You see an explosion in enthusiasm to tokenize this. But there's a lot left to be built. You know, there's a lot, you know, who's going to build the 8% yield coin in yen or in Swiss Franks and who's going to build the 24%, you know, 24% yield coin, you know, either with five or 10 V or you stake it for 90 days and pay 24%. All of these things are out there to be done. They're not that complicated ideas. What you needed was a mountain of equity to create the credit. Then you need the equity investors in MSTR to support that. You need the credit investors to support the credit. Then once you've got that intermediate layer, the sky's the limit. You can create all sorts of incredible digital money, digital yield instruments in every currency and then you can take them to every chain and you can put whatever functionality you you want on it. Our company's focus is to make stretch this hundred billion dollar aum multibillion dollar liquidity instrument and get the volatility below two into the ones like a money market and then we stop because that's enough for us. What we offer to all of you is you can create the hundreds of digital money and digital yield apps and plug them into all the cool crypto and DeFi applications and um you know maybe you keep 200 300 basis points of it right you can you could offer eight keep 350 basis points get paid 11 and it would be a huge value added that you're offering and uh instead of getting 15 basis points on an ETF why don't you get 150 or 250 on a proprietary product that you create, it'll be easier to sell. It'll be worth doing. It'll be better for you. I think uh the people in this room is how we take digital credit to the entire world into every part of the ecosystem.

[00:24:23]I think that this represents the merging of the interest of Bitcoin and the interest of crypto and crypto and DeFi and tradi and it should uh power the entire digital assets industry to the next 10x or 100x development. Uh I've been really excited working with all of you so far and I look forward to what's to come. Thank you for your time today.