💥 Michael Saylor Pushes $100B Bitcoin Credit Model — A Financial Game-Changer?

Michael Saylor, chairman of Strategy (formerly MicroStrategy), has unveiled what may be his boldest financing plan yet: perpetual preferred stock, branded “Stretch.”

So far, Strategy has built up $75B in Bitcoin through common stock sales and convertible bonds. Now, with Stretch, Saylor is aiming to shift that model. Unlike debt or equity, these securities carry no maturity date, no voting rights, and flexible dividend payments—a structure that could fuel further Bitcoin purchases but may unsettle some investors.

🔑 Key Points:

Stretch offers variable-rate dividends, giving the issuer freedom to defer payments. Over the next four years, Strategy plans to retire billions in convertible notes, scale back common stock offerings, and lean more on preferred issuance. Saylor envisions building a “BTC Credit Model” that could raise $100B–$200B if demand proves strong.

💰 Capital Raises So Far:

This year alone, Strategy has secured $6B across four perpetual preferred tranches, including a recent $2.5B deal, one of crypto’s largest capital raises.

⚠️ Risks & Concerns:

Bitcoin generates no cash flow, making it harder to sustain large dividend payouts. High yields (8%–10%) could become burdensome in downturns. Critics like Jim Chanos call the securities “crazy” due to their non-cumulative nature and issuer discretion on dividends. Bank of America’s Michael Youngworth noted this retail-driven approach is unusual in a market dominated by institutional, investment-grade players.

🚨 Bottom Line:

Saylor’s vision could mark the foundation of a new Bitcoin-backed credit system, but questions remain about whether perpetual preferreds are sustainable—or a risky bet disguised as innovation.

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