- Michael Saylor says a Bitcoin-backed stablecoin could offer 7% yield with near-zero volatility.
- Strategy’s STRC serves as a bridge between Bitcoin ownership and lower-volatility digital credit products.
- Strategy’s Bitcoin accumulation remains tied to capital-raising rather than a fixed target.
- Saylor sees the crypto economy growing to $120 trillion by 2035.
During an interview with Binance on Monday, Strategy Executive Chairman Michael Saylor described a “mythical Bitcoin-backed stablecoin” that could pay 7% while maintaining a stable dollar value. “So think of it as almost like the mythical Bitcoin-backed stablecoin. Imagine if you had a stablecoin that paid 7%.”
Existing stablecoins generally generate returns tied to short-term dollar rates and lower fees, he said. A Bitcoin-backed model could generate higher returns through Bitcoin-based credit, and other companies, including Saturn, are already developing such products.
Saylor outlined an evolution from digital capital to digital credit and ultimately digital money. “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.
He added that digital credit could offer annual returns of 10% to 12% with substantially lower volatility than Bitcoin. He pointed to Strategy‘s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) as an example of digital credit, describing tokenization as moving assets from bankers’ hours to markets that trade “24/7, 365.”
Consequently, Strategy‘s Bitcoin purchases remain tied to capital raising rather than a fixed accumulation target. “We don’t have any particular target. We accumulate Bitcoin as we raise capital,” he said, adding that the more credit the company sells, the more Bitcoin it will buy; Strategy holds 847,666 Bitcoin as of September.
Looking further out, Saylor said, “I think we are in a Gold rush between now and the year 2035.” He estimated the crypto economy could grow from roughly $3 trillion to $120 trillion if it eventually reaches 10% of global assets, and that miners will have mined 99% of Bitcoin’s total supply by 2035.
Meanwhile, Saylor’s comments came as Bitcoin traded over $84,000, up over 1% in the past 24 hours, while Strategy‘s stock rose over 1%; Strategy is up over 3% so far this year, while Bitcoin is down over 4%. On Stocktwits, retail sentiment around Bitcoin dipped to “bearish” from “neutral,” and MSTR retail sentiment also stayed “bearish.”
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