On Monday, Michael Saylor introduced the IPO of his fourth collection of most popular shares providing perpetual yield, Stretch (STRC).
With its debut, Saylor claims that he’s “building out the yield curve for BTC credit” and has printed the world’s first curvature of bitcoin (BTC) credit score for the world to behold.
As founding father of the world’s largest publicly traded BTC treasury firm, Saylor is exclusive in his potential to challenge yield-bearing securities whereas holding over 3% of the circulating provide of BTC.
This privilege, in line with Saylor, permits his firm to benchmark its charges in opposition to the yield curve of multi-trillion greenback bond markets like company mortgage-backed securities, junk bonds, and even US Treasuries.
Certainly, in line with a diagram printed yesterday alongside the STRC IPO announcement, the supposed BTC credit score yield that MicroStrategy is constructing resembles the yield curve of those huge devices plus a slight premium attributable to MicroStrategy’s idiosyncratic dangers.
Slide 19 of Technique’s July 21, 2025 STRC IPO Investor Presentation
Particularly, in line with Saylor, buyers are pricing Strife (STRF) — one other of MicroStrategy’s dividend-yielding most popular shares — at a “340 basis point credit spread above the 20-year Treasury bond.”
In different phrases, for simply an additional 3.4% yield, buyers are allegedly keen to forego the complete religion and credit score of the US authorities for considered one of MicroStrategy’s preferreds.
Bitcoin doesn’t have a yield curve
An precise credit score yield curve is a graph of yield percentages (rates of interest, displayed as percentages) and the maturity lengths of bonds with related credit score high quality.
For many collection of presidency or high-grade company bonds, yields curve upward.
A optimistic, up-and-to-the-right slope is regular. Longer-duration bonds yield greater than shorter-term bonds as a result of buyers demand further compensation for larger uncertainty tied to time.
In keeping with Saylor, MicroStrategy’s BTC credit score yield curve is barely inverted — down and to the appropriate — as a result of it displays the truth of yields obtainable in at this time’s market.
Quick-term junk bonds and leveraged loans, then again, provide common yields of 6-7% p.c at this time, whereas long-term US Treasuries provide yields of simply 4.9%.
In fact, the issue with Saylor’s so-called yield curve is that it graphs the yields of various devices. A yield curve ought to have a optimistic slope in regular market situations as a result of the one variable that modifications is time — not time plus the instrument itself.
As well as, Saylor’s yield curve doesn’t graph bond yields in any respect. As a substitute, it graphs dividend charges from most popular shares which are junior to precise bonds in seniority.
Saylor conveniently excluded the precise bond yields that MicroStrategy has issued from his supposed BTC credit score graph.
$STRC is $MSTR’s stealth weapon.
Whereas others promote inventory to outlive, Saylor launches 1-month paper to print fiat → purchase BTC → enhance NAV — all whereas retaining fairness tight.
This isn’t leverage.It’s a Bitcoin yield curve in disguise.
Hyperbullish. 🟧📊 pic.twitter.com/rpTKSr6tC0
— financialconspirator (@financialcnspr) July 22, 2025
Hyperbullish on a “bitcoin yield curve in disguise.”
Furthermore, MicroStrategy’s yield curve is just not the yield curve of BTC credit score in any respect. In truth, BTC has no yield, nor does BTC provide any type of credit score.
BTC is solely an asset that transacts on a blockchain. Calling 4 most popular shares of an organization “the yield curve for BTC credit” is aspirational and complicated.
On the capital stack, STRC is senior to Stride, Strike and MicroStrategy (MSTR) widespread inventory. It’s junior to Strife and the corporate’s debt, together with six collection of convertible notes.
