Bitcoin does not need staking, inflation or yield built into its protocol. Michael Saylor instead defends a model where bitcoin remains pure digital capital, while financial markets create credit and income around it.
In brief
- Saylor believes that Bitcoin does not need to copy Ethereum's staking.
- Returns must come from financial products built around BTC.
- This strategy is based on credit, equities and risk management.
Bitcoin must remain pure digital capital
Michael Saylor rejects the idea that Bitcoin should copy Ethereum to produce returns. For the executive chairman of Strategy, the first crypto must maintain its simplicity. Its rarity and security already constitute its main advantage. This vision extends Saylor's strategy, based on accumulation and financial engineering.
Ethereum notably allows ETH holders to participate in staking. They lock up their tokens to contribute to the operation of the network and receive remuneration. Bitcoin works differently. Miners secure the blockchain, while holders can hold their BTC without directly participating in validation.
For Saylor, this difference does not represent a delay. Bitcoin does not need to create new tokens or change its protocol to provide yield. Revenue can be produced on top of its blockchain, through financial instruments backed by bitcoin reserves.
A financial structure in five layers
Saylor presents this approach in the form of a “Digital Asset Stack”. This architecture includes five layers: digital capital, digital credit, digital currency, digital yield and digital stocks.
Bitcoin occupies the first layer. It serves as a rare reserve and fundamental guarantee. The other products are then built around this base. BTC does not itself pay income, but it can support financial securities capable of distributing interest or dividends.
This separation would preserve the characteristics of the protocol. Bitcoin remains limited to 21 million units and does not depend on an issuance mechanism intended to reward holders. The return comes from the capital markets, not from a change in the network's monetary policy.
Strategy transforms BTC into credit
The Strategy model illustrates this vision. The company holds a huge reserve of Bitcoin and issues several classes of common or preferred shares. The capital raised is used in particular to acquire more BTC.
Saylor classifies some of these titles as “digital credit.” STRC, for example, is a perpetual preferred stock designed to pay a dividend and move near a par value of $100. It provides indirect exposure to the company's Bitcoin strategy.
In this structure, common shareholders absorb more of the volatility. Holders of credit products are looking for a more stable income. Bitcoin serves as an underlying reserve, but the return depends on Strategy's ability to manage its capital and liabilities.
A return that still carries risks
Saylor describes Bitcoin's volatility as a natural characteristic of scarce, global, and continuously traded capital. Credit instruments can mitigate this volatility for some investors. However, they cannot make it disappear.
A product like STRC depends on liquidity, market demand and the financial health of Strategy. If the price of Bitcoin falls sharply, the balance sheet value may contract. However, the company must continue to honor its dividends and other commitments.
Saylor also acknowledges that Strategy must retain the ability to sell some of its bitcoins. An absolute ban on sales would, according to him, weaken the credibility of the securities issued. Creditors need to know that the company can mobilize its assets when needed.
This position marks an important development. Bitcoin remains the heart of the system, but it is no longer presented as a completely untouchable reserve. Strategy is now looking to turn its BTC stock into a financial powerhouse. After financing an acquisition thanks to its STRC share, the company is testing an ambitious idea: producing returns around Bitcoin without asking Bitcoin to change.&
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