Michael Saylor, the executive chairman of Strategy, said that Bitcoin doesn’t need to be staked, inflation or yielded based on protocol for it to generate returns for investors.
You can read more about it here:
- Saylor argues that Bitcoin investors do not require staking or inflation to be rewarded directly.
- Investors can find Bitcoin in the Digital Asset Stack below money, credit, return, and equity.
- Saylor’s capital market model remains centered around treasury-related products, as shown by the latest Bitcoin purchase made by Strategy.
He made his comments in a post he published on X on June 16. In that posting, he outlined a Digital Asset Stack consisting of five levels built around Bitcoin. “Bitcoin does not need staking,” Saylor said.
Moreover, he said Bitcoin doesn’t need any inflation or modifications to its protocol. This comment set Bitcoin apart from other networks, such as Ethereum where protocol designs include staking.
Saylor described Bitcoin “pure digital capital,” Returns are generated through products that sit above the asset, not within the network. According to him, Bitcoins should be scarce, neutral and unaltered while the capital markets create tools around them.
Michael Saylor places Bitcoin Credit above BTC
Michael Saylor’s framework puts Bitcoin as the bottom layer. Digital credit, digital currency, digital yield and digital equity are all placed above it. BTC can be used to secure products that meet different investor requirements.
Bitcoin will remain the reserve currency. The risk and returns of credit and equity products are different. Saylor says that capital structure can yield more than adding supply to Bitcoin or altering its rules.
“The Digital Asset Stack does not weaken Bitcoin’s core principles,” Michael Saylor stated:
This line is the core of his argument. He presents Bitcoin-linked product as a means to increase access, without making Bitcoin another yield-bearing system.
Arguments are shaped by strategy products
Saylor gave the example of Strategy-style securities to illustrate how Bitcoin linked credit could work. STRC, a preferred stock product that sits above the common equity of a company, gives investors an alternative way to access Bitcoin-backed financing.
Credit products could offer a more stable return. In this structure Bitcoin is the baseline value. Equity absorbs a greater amount of price risk. Saylor stated that these instruments are subject to varying levels of risk depending on their liquidity, level of stress and demand from investors.
“The important point is not that digital credit always has one fixed volatility number. It does not,” Saylor said.
He isn’t presenting Bitcoin Credit as risk free. In his comment, he frames it as another layer of BTC that has a distinct risk.
His recent remarks on Bitcoin Treasury metrics are also relevant. The same as before reportedMichael Saylor said CEBE BPS measured Bitcoin exposure following senior claims, such as preferred stock and debt. The metric is used to help investors determine the amount of Bitcoin that remains tied to common shares once obligations have been counted.
Recent acquisitions bring treasury back in the spotlight
Strategy is the biggest public company Bitcoin investor. Yesterday, we reported that the company. bought 1,587 BTC Its total BTC assets now stand at 846,842 BTC, an increase of about $100 Million. It was a follow-up to an earlier purchase. 32 BTC sale Raised questions regarding the company’s Treasury approach.
Saylor has claimed that small Bitcoin transactions can be incorporated into a broader capital model. He had previously stated that a Bitcoin sales before the end of year was a good idea. “not unlikely,” Models that are solely based on sales of Bitcoin, Bitcoin credit or equity can also underperform.
This approach is now more clearly defined in his most recent post. Bitcoin remains at the bottom. It is followed by credit products and equity. The return comes from the treasury, design of balance sheets, and access to markets.
Now, the debate centers around whether or not this model will continue to work through various market cycles. Some supporters see this as an opportunity to transform Bitcoin into capital market base. Critics will focus on debts, preferred dividends and the risks that Bitcoin price changes can put pressure on the structure.
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Source: crypto.news
