Strategy is a Digital Credit Issuer (DCI), not a Bitcoin Treasury Company (BTCTC).
There will be lots of Bitcoin treasury companies (like Tesla, SpaceX, Block/Square) who save a portion of their treasury in Bitcoin. This will be the corporate standard in the future, in my opinion.
Bitcoin treasury companies have no standalone value apart from their businesses, and their mNAV’s will trend towards 1x if their business model is to solely sell shares to accumulate Bitcoin.
Strategy (and probably others like Strive and MetaPlanet) have the ability to defend their premium (and potentially expand it) by issuing these digital credit instruments.
This is their business model.
To ease the transition into a Bitcoin-denominated world by meeting the customers where they are. Pensions and other large financial institutions aren’t going to allocate large portions of their portfolios to Bitcoin, even with the introduction of ETFs. At least not in the foreseeable future.
Strategy refines Bitcoin, just as Standard Oil refined oil. They turn a raw commodity like Bitcoin into something usable by the masses: Strife $STRF is long duration senior credit, Stretch $STRC is short duration credit, Strike $STRK is structured Bitcoin, and Stride $STRD is long duration junior credit. They also have a Euro-denominated Strife $STRF product coming soon, called Stream $STRE. These instruments are designed to cut the volatility away from Bitcoin and refine it into a structured instrument that can be handled. When they cut away the volatility on these products, in turn, it amplifies the volatility of their common stock, $MSTR, to a tune of 1.5-2x Bitcoin’s volatility.
I think there is a lot of confusion around this subject. This is just my view. I would love to hear yours.