Michael Saylor has released new details about Strategy’s STRC BTC Credit model, which calculates Bitcoin credit using three core assumptions: a 10% annual return, 40% volatility, and a Bitcoin price of $62,893. The disclosure came during an investor Q&A moderated by Natalie Brunell and quickly gained traction across social media, with traders evaluating whether the framework could influence sentiment around institutional Bitcoin exposure.
During the session, Saylor and Strategy CEO Phong Le discussed the company’s balance sheet strategy and Bitcoin’s role in the global financial ecosystem. Saylor described Bitcoin not as a traditional payment method or everyday currency, but as the primary digital capital asset. He emphasized that 99.9% of global economic value currently sits in traditional capital, real estate, gold, and credit markets, excluding Bitcoin, and argued that a 10- to 100-fold expansion of the Bitcoin network would require substantial capital inflows from those legacy markets. The company’s digital credit instruments are designed to help trigger that shift.
Phong Le addressed investor concerns about stock dilution by arguing that capital raises and new instruments create shareholder value as long as they increase Bitcoin per share. He said a 50% pullback in Bitcoin could lead to stock price fluctuations of up to 75%, and stressed that Strategy operates a long-term leverage and capital growth model rather than acting as a short-term Bitcoin trading vehicle. Management also said it may dynamically purchase BTC, repurchase credit instruments, or accumulate dollar reserves depending on market conditions.
Saylor reiterated his long-term conviction that Bitcoin could reach $1 million to $10 million as the company accumulates a larger portion of supply. He rejected the idea of Bitcoin-denominated dividends as illogical, saying the most rational approach is to borrow in low-cost, inflation-resistant fiat currencies such as dollars or yen and allocate the proceeds into Bitcoin as the strongest appreciating asset.
The commentary arrives amid low Bitcoin trading volumes and ongoing institutional interest in Bitcoin ETFs. While the STRC model’s assumptions are not a guarantee of performance, they provide a framework that market participants may use to assess Bitcoin’s long-term investment case.
