Michael Saylor: Strategy's Core Business is Bitcoin-Based Digital Credit Products

Michael Saylor, the chairman of Strategy, emphasized that the company's core business is not investing in or holding Bitcoin, but rather issuing digital credit products utilizing Bitcoin. He stated that they plan to create financial products that provide regular cash flow based on Bitcoin to secure new investment demand. In an interview with a U.S. financial broadcaster on the 20th, Saylor said, "Digital credit products are our products, and Strategy stock (MSTR) is merely a byproduct of that." Strategy has been building a business model that issues various securities while holding Bitcoin as a core asset to raise funds. Digital credit products refer to securities that provide dividends to investors based on Bitcoin, as Bitcoin itself does not generate dividends or interest. Saylor emphasized the importance of maintaining a stable market price for digital credit products for business expansion, explaining a strategy where the company would inject funds to buy back the securities if the preferred stock price falls below par value. He claimed that if this business operates successfully, Strategy could be recognized with a higher enterprise value than its net asset value (NAV). However, he also acknowledged the possibility that the digital credit product business may not grow as expected, stating that if the business model does not function properly, Strategy will ultimately remain a company that holds Bitcoin.

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