Strategy’s Michael Saylor proposes $10B-$30B digital credit plan

Strategy has spent years accumulating Bitcoin through two primary methods: selling new common shares and benefiting from rising Bitcoin prices. However, on its third-quarter 2026 earnings call, Executive Chairman Michael Saylor revealed a potential shift in this approach, proposing a new financing method that could generate between $10 billion and $30 billion in what the company calls 'digital credit.'

New Financing Strategy

Saylor described the $10 billion to $30 billion range as financing capacity that wouldn't require new common-stock issuance or further gains in Bitcoin's price. The $30 billion figure reflects the company's assessment of its financial structure and Bitcoin holdings rather than an immediate fundraising target.

CEO Phong Le elaborated on the mechanics, stating that Strategy's primary method for acquiring more Bitcoin will be through issuing preferred securities, particularly perpetual preferred shares like STRC. These instruments offer fixed dividends and priority over common shareholders without voting power or a maturity date.

Financial Foundation

As of October 25, 2026, Strategy held 848,517 BTC, a position that has increased by 26% for the year. The company also reported approximately $5.07 billion in dollar assets, which could cover preferred dividends and debt interest for roughly 3.4 years.

Strategy's third-quarter net income reached $19.53 billion, largely driven by a $20.91 billion gain on its digital assets. The company already has $16 billion in notional digital credit securities outstanding across ten listed instruments, with Saylor's new range representing a potential expansion beyond current offerings.

Strategic Evolution

What began as a traditional software company has transformed into one of the most prominent corporate Bitcoin treasuries. Strategy now structures its capital approach in three layers: digital capital (Bitcoin), digital equity (common stock), and digital credit (preferred instruments).

This new strategy marks a departure from previous funding sources like at-the-market equity sales and convertible debt. While preferred shares avoid common share dilution and never mature, they do create a standing dividend obligation that must be paid regardless of Bitcoin's price performance.

Implications

For common shareholders, the primary benefit is reduced dilution, though their claim sits behind preferred holders who get paid first. Preferred buyers gain access to yield backed by Strategy's substantial Bitcoin position and multi-year cash reserve, though adding billions in new preferred securities would increase the annual dividend obligation.