Bitcoin-Backed Stablecoin? Michael Saylor Says Digital Dollars Could Offer 7% Yield

Saylor outlined a vision for yield-bearing digital dollars built on Bitcoin-backed credit instruments, with Strategy’s STRC playing a role in the proposed financial model.

• Saylor said digital money could offer a 7% yield while maintaining a stable dollar value.
• He described STRC as a bridge between Bitcoin ownership and lower-volatility financial products. 
• Strategy’s  Bitcoin accumulation remained tied to its ability to raise capital.  

Strategy (MSTR) Executive Chairman Michael Saylor said a Bitcoin-backed stablecoin could potentially offer investors a 7% yield with near-zero volatility. He described it as digital money built on the company's expanding digital credit business. 

Saylor, during an interview with Binance on Monday, described the concept as the next step in what he calls the evolution from digital capital to digital credit and ultimately digital money. “So think of it as almost like the mythical Bitcoin-backed stablecoin. Imagine if you had a stablecoin that paid 7%." According to him, it would be a dollar-backed token that pays more than conventional stablecoins. 

Saylor said existing stablecoins generally generate returns tied to short-term dollar rates and lower fees, while a Bitcoin-backed model could potentially generate higher returns through Bitcoin-based credit. He said other companies, including Saturn, are already developing products in this area. 

Saturn is a yield-centric dual token protocol with a stablecoin pegged to the US dollar called USDat and a yield-bearing staked version called sUSDat that uses Bitcoin-backed institutional digital credit.

Strategy, however, did not announce a product of its own. 

From Bitcoin To Digital Credit To Digital Money 

Saylor explained that Bitcoin served as digital capital, while digital credit instruments could convert its performance into more predictable returns. He said digital credit could offer annual returns of 10% to 12% with substantially lower volatility than Bitcoin itself. 

"The third step is to convert it and transform it into digital money, and digital money is a digital currency with a yield," he said.

Saylor pointed to Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) as an example of digital credit. Saylor said tokenization moves such assets from bankers' hours to markets that trade "24/7, 365."

Strategy’s Bitcoin Buying Remains Capital-Raising Driven 

He also explained how Strategy’s Bitcoin purchases depended on capital raising rather than a fixed accumulation target, saying, “We don't have any particular target. We accumulate Bitcoin as we raise capital.” 

He added that the company expects the more credit they sell, the more Bitcoin they will buy. Strategy holds  847,666 Bitcoin as of September. 

Saylor Sees Bitcoin ‘Gold Rush’ Through 2035

Looking beyond Strategy’s credit products, Saylor argued that the digital asset economy still had considerable room to expand. "I think we are in a gold rush between now and the year 2035," he said. He estimated that the crypto economy could grow from roughly $3 trillion to $120 trillion if it eventually reached 10% of the value of other global assets. 

Saylor also projected that miners would have mined 99% of Bitcoin's total supply by 2035, underscoring his longer-term scarcity argument. 

Bitcoin, MSTR: Retail Sentiment Turns Bearish

Saylor’s comments came as Bitcoin’s price traded over $84,000, up over 1% over the past 24 hours. On Stocktwits, the retail sentiment around BTC dipped to ‘bearish’ zone from ‘neutral’ zone, with chatter remaining at ‘normal’ levels over the last day.

MSTR’s stock was up over 1% in early morning trade on Tuesday. On Stocktwits, the retail sentiment around MSTR remained in the ‘bearish’ zone, with chatter at ‘normal’ levels over the past day. 

MSTR has been up over 3% so far this year, while Bitcoin has been down over 4% during the same time.

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