STRC BTC Credit Decreases to 53bp, Down by 1bp

The BTC Credit of STRC, a variable-rate perpetual preferred stock from Strategy, has decreased to 53bp, which is a reduction of 1bp from the previous figure. Michael Saylor, the chairman of Strategy, disclosed this figure via X on the 8th. The calculation is based on assumptions of a 10% annual return on Bitcoin, a volatility of 40%, and a Bitcoin price of $79,809. The BTC Credit is an internal metric used by Strategy to explain the Bitcoin-based credit capacity of STRC and is not a credit rating assigned by external credit rating agencies. This change in figure demonstrates that the metric can vary depending on the assumptions used in the calculation and the capital structure. The $79,809 presented by Saylor is a benchmark for metric calculation, not a future price forecast. Strategy unveiled its digital credit capital framework at the end of June, along with the STRC dividend policy and a digital credit security buyback program. The company has set the dividend rate for STRC at 12.00%, but cash dividends depend on the board's declaration and legally available resources. The BTC Credit of STRC varies based on the assumptions of Bitcoin price, return, and volatility. This update does not directly imply changes in STRC's market price or dividend rate.

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