Key Takeaways How is Strategy using Bitcoin?

It launched $4 billion credit products, with Stretch offering fixed yields up to 12% backed by BTC reserves.

What drives institutional interest?

Spot Bitcoin ETFs crossed $150 billion assets, while corporate treasuries topped 1 million BTC, fueling cautious optimism for long-term adoption.

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Michael Saylor is redefining Bitcoin’s role in global finance.

As Executive Chairman of Strategy (formerly MicroStrategy), Saylor says the company’s new “digital credit” instruments represent a pivotal shift, transforming Bitcoin [BTC] from a volatile store of value into the backbone of a yield-generating credit system.

In 2025, Strategy launched four credit products, collectively valued at $4 billion. At the forefront is Stretch, a flagship preferred stock designed to deliver fixed income, fully backed by Bitcoin reserves.

In an interview with Bloomberg, Saylor said:

“What we’re doing is stripping away Bitcoin’s volatility and risk … distilling it into a digital capital instrument, and then offering a defined yield—say, 10% in U.S. dollars.”

Strategy’s $4B credit bet

For centuries, credit relied on gold reserves. Governments and corporations issued debt instruments backed by physical assets.

Saylor argued that Bitcoin is now stepping into that role, with instruments designed to offer yields of up to 12% while being over-collateralized.

“The killer app in the Bitcoin world is Bitcoin-backed credit. If we were just an ETF, we wouldn’t be able to create credit instruments. The credit itself is an extraordinary new asset class.”

Strategy’s approach positions Bitcoin as digital capital—collateral against which the company can design and sell structured yield products.

He contrasted Bitcoin’s capital role with everyday payments, which he said should remain with stablecoins such as Tether [USDT] and Circle’s [USDC].

Corporates build Bitcoin treasuries

Bitcoin has grown into a notable investment class for corporations as they expand digital treasury strategies.

According to CoinGecko, 120 corporations now hold Bitcoin as treasury assets, amounting to 1.51 million BTC—7.19% of the circulating supply—valued at $171 billion.

Strategy controls nearly half of that share, with 3.047%. Even so, public companies collectively added 415,000 BTC to treasuries in 2025, already surpassing the 325,000 BTC acquired in 2024.

This surge coincided with growing regulatory clarity, including the proposed BITCOIN Act, which is expected to set guidelines for the adoption and use of the digital asset.

Corporations are also diversifying into other digital assets.

Ethereum [ETH], the second-largest cryptocurrency by market capitalization, makes up $15.8 billion in treasury holdings. Binance Coin [BNB], the native token for BNB Chain, is also gradually being added to balance sheets.

ETFs power institutional demand

Institutional investors are equally expanding their exposure through Bitcoin exchange-traded funds (ETFs).

According to SoSoValue, U.S.-listed Spot Bitcoin ETFs held $150.41 billion worth of BTC on the 29the of September, with a $521.95 million daily net inflow.

Analysts suggest that the long-term positive outlook will depend heavily on the asset’s continued price strength.

James Madden, Director of Trading at Deus X Pay, noted that “accumulation among long-term holders and digital asset managers” continued to support Bitcoin’s sustained upward trend.

He added that a dovish Federal Reserve could further shape demand.

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