Important Highlights
- Bitcoin Credit Model is a new way to raise capital using Bitcoin-backed preferred shares.
- Strategy raised $6B in 2025, including a record-setting $2.5B tranche.
- Saylor’s long-term goal? Raise $100–200B without diluting shareholders.
Michael Saylor Builds $100B Bitcoin Credit Model
Michael Saylor isn’t just holding Bitcoin; he’s building a whole new financial system around it.
As chairman of Strategy (formerly MicroStrategy), Saylor has already helped the company become the largest public holder of Bitcoin, with over $75 billion in crypto assets.
But now, he’s taking things to the next level with something he calls the Bitcoin Credit Model, a bold plan to raise $100 billion using Bitcoin-backed financial products.
Bitcoin Credit Model: A New Way to Fund the Future
So, what exactly is the Bitcoin Credit Model?
At its core, it’s a fresh approach to raising money, one that moves away from traditional financing methods like selling stock or issuing debt.
Instead, Strategy is now offering perpetual preferred stock for sale under the name “Stretch,”
These aren’t your average shares. They don’t come with voting rights, they don’t expire, and the company can even defer dividend payments when needed.
That might sound risky to some investors, and it is, but it also gives the company a lot of flexibility.
In fact, Strategy has already raised $6 billion this year alone using this model.
One of those offerings, a $2.5 billion round, is among the biggest capital raises in the crypto space for 2025.
How the Bitcoin Credit Model Could Change Everything
Saylor isn’t shy about his goals. He thinks this model could eventually unlock $100 billion or even $200 billion in new capital, all backed by Bitcoin.
That’s a huge number. But if it works, it could seriously change the way companies in the crypto space (and maybe beyond) raise money.
Instead of diluting shareholders or borrowing from big institutions, firms could tap into retail investors who believe in Bitcoin’s future.
And that’s kind of the point. Saylor’s turning to everyday investors, not just hedge funds, to fuel this new system.
According to Bloomberg, he is planning to retire billions in convertible notes, reduce general stock sales and rely more on these favorite stock offerings moving forward.
Why Stretch Stock Is the Centerpiece
The “Stretch” preferred stock is the foundation of this model. It’s designed for investors who want a piece of Bitcoin’s upside without actually holding Bitcoin.
The shares offer variable dividends, which could be attractive in a low-yield world. But there’s a catch: Bitcoin doesn’t generate income. So those dividends have to come from Strategy’s reserves or new capital raises.
That’s why some financial experts are raising eyebrows. It’s an innovative idea but also a risky one. If the investor is interested van or a bitcoin crash, the strategy may face difficulties. However, for enthusiastic bitcoin supporters, potential benefits may overtake the risk.
Want to explore more about the company’s Bitcoin moves? Check out Strategy’s Bitcoin strategy.
Why the Bitcoin Credit Model Feels Different
There’s something different about this model compared to traditional finance. For one, it’s built for retail investors not just institutions. That alone is a big shift. Usually, preferred stock and convertible bonds are reserved for the big players.
But Saylor’s offering opens the door to anyone who believes in Bitcoin and wants exposure through something a bit more structured.
It also lets Strategy keep growing its Bitcoin stash without flooding the market with new stock or taking on debt that could weigh the company down.
Is It Sustainable? That Depends on Bitcoin
To be honest, this is hardly a surefire way to win. Since bitcoin does not generate revenue, everything depends on a major basis: that it will increase in the price.
Dividends continue to flow, investor interest increases, and everyone has benefits if bitcoin holds (or increases). However, what if the cryptocurrency market plummets? The model could be stretched thin — no pun intended.
That’s the risk. But it’s also the innovation.
Saylor is betting big on Bitcoin’s long-term value. And with billions already raised, it seems plenty of investors are willing to bet with him.
