Michael Saylor elaborates on Strategy: Creating a dual product system of MSTR digital equity and STRC digital credit According to BlockBeats, on September 29th, Strategy founder Michael Saylor elaborated on the company's core strategy, stating that Bitcoin is digital capital, MSTR is digital equity, and STRC is digital credit. The company's corporate strategy is to create two complementary products from Bitcoin capital: MSTR provides amplified Bitcoin exposure and holds ownership of the growing digital credit business; STRC aims to reduce volatility, compress duration, and provide USD returns. Creating digital credit requires actively managing the entire balance sheet, including Bitcoin, USD, debt, preferred stock, and common stock, involving multiple decisions such as capital, liquidity, priority, dividend yield, payment frequency, and investor terms. The company's goal is to create the highest quality digital credit products: supporting attractive US dollar returns with financial resilience, disciplined capital allocation, and a more stable investor experience. Dividends are visible outputs, and the quality of the underlying system is the core work. The company engineers products by managing capital, debt, and liquidity. Investors seeking exposure to Bitcoin prices can directly hold BTC or spot Bitcoin funds; MSTR investors, on the other hand, buy equity in a company that pursues both Bitcoin amplification exposure and digital credit business growth, accepting amplified volatility and downside risks. STRC investors pursue different experiences: dollar returns, reduced price volatility, and shorter duration characteristics, relying on the company's capital strength, preferred debt status, dollar liquidity, and proactive management to achieve them. The two are interrelated - the capital structure directs more volatility and return potential of Bitcoin towards common stocks, thereby providing more stable return propositions for credit investors. The company manages its balance sheet uniformly, creating amplified exposure for equity investors and damped exposure for credit investors, both of which rely on the company's strength and execution quality. To achieve this goal, Strategy continues to manage all levels of capital structure, including issuing and repurchasing STRCs, distinguishing payment reserves from cash allocation, adjusting dividend yields, optimizing securities terms, and seeking shorter duration and longer payment tracks. The company emphasizes that digital credit is a discipline that requires continuous practice: stripping volatility, compressing duration, and extracting returns from Bitcoin capital. Bitcoin itself does not pay coupon, while Strategy pays dividends through securities terms. The ultimate goal is to build stronger digital credit and create greater long-term value for MSTR shareholders, mutually reinforcing the quality of capital and equity value. [Original link]