Strategy launches a Bitcoin-native credit model to assess Strategy’s credit risk.

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BlockBeats message, July 9 — Strategy launched a Bitcoin-native credit model that is used to assess the credit risk, credit spreads, and other factors of debt (such as convertible bonds) and preferred shares (such as STRC) issued by Strategy’s treasury company.

The model uses custom metrics such as BTC Rating (Bitcoin coverage multiple), BTC Risk (probability of default), and BTC Credit (spread in bps), backed by the company’s 52 billion USD BTC reserves to analyze debt and preferred shares. All metrics are collateralized/risk-sourced by the Bitcoin reserves held by Strategy, with Bitcoin price, volatility, and ARR as the main variables.

The analysis indicates that this move shifts Bitcoin from a store of value to a capital efficiency tool, prompting institutions to view BTC as a financeable asset and accelerating the development of the digital credit market.

BTC1.63%
STRC-0.56%
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