{"content":"💥 Michael Saylor Unleashes $100B Bitcoin Credit Initiative — A New Financial Era? Strategy (previously MicroStrategy) chairman Michael Saylor is introducing perpetual preferred stock as a new financing method, which might be his most ambitious financial undertaking. Strategy's $75 billion in Bitcoin assets have come via common stock sales and convertible bonds, but this new strategy intends to change that. The perpetual preferred stock, branded “Stretch,” does not mature and may delay dividend payments, giving the issuer flexibility but possibly disturbing investors. Stretch has variable-rate dividends and no voting rights, making it neither debt nor equity. Saylor thinks this may fund the company's Bitcoin acquisitions. Over the next four years, he expects to retire billions in convertible notes, cut ordinary stock sales, and depend more on preferred issues, Bloomberg reports. This ambitious idea seeks to create a "BTC Credit Model," where Bitcoin supports a new revenue stream. If demand for these securities is high, Saylor expects to raise $100 billion or $200 billion. Risks of High Yield Strategy has raised $6 billion in four perpetual preferred offers this year, with the latest $2.5 billion tranche being one of the biggest crypto capital raises. Bank of America's Michael Youngworth remarked that this retail-driven strategy is rare in the corporate preferred market, which is dominated by investment-grade institutions. This model's sustainability is questioned. Bitcoin does not produce revenue, making it difficult to pay large dividends for perpetual preferreds. In view of the 2022 “crypto winter,” Strategy CEO Phong Le sees this transition as a chance to strengthen the capital structure. Experts say perpetual preferreds' high yields—8% to 10%—could be costly in a market collapse, despite their potential benefits. Critics like short-seller Jim Chanos call these products “crazy” for institutions to acquire due to their non-cumulative character and issuer dividend discretion. #Saylor #MarketTurbulence #BTC $BTC ","images":["https://d2kdcqywr8ua22.cloudfront.net/uploadfile/article/blog/2025082025/08/16/fb1a5ca863f146a3badce96b4ea64138.png"],"tags":[],"tradingPairs":["BTC/USDT"],"quotearticleid":0}