Strategy (MSTR) Publicly Endorses Success of Bitcoin (BTC) Financial Company Strive

▲ Bitcoin, Michael Saylor/ChatGPT generated image

Strategy (MSTR), a leader in the Bitcoin (BTC) based digital credit and financial securities market, has publicly endorsed the success of its competitor Strive (ASST), declaring an expansion of the market pie. The perspective is that the relationship between companies sharing Bitcoin as an underlying asset is one of mutual prosperity, not cutthroat competition.

Benzinga reported on September 30 (local time) that Michael Saylor, Chairman of Strategy's Board of Directors, stated via X (formerly Twitter) that he wishes for the success of quality issuers like Strive, which issue so-called 'digital credits' such as Bitcoin-backed preferred stock. This is based on the judgment that the entry of multiple sound companies into the market can attract global capital and new investors to the Bitcoin financial ecosystem.

Saylor presented his own capital classification system, advocating for a win-win logic. He defined Bitcoin as 'digital capital,' preferred stocks like Strategy's STRC or Strive's SATA as 'digital credit,' and common stocks like MSTR or ASST as 'digital equity.' He explained that while companies in traditional industries like beverages or apparel compete exclusively without economic ties, Bitcoin financial companies are bound by a single core asset, meaning an increase in Bitcoin's value directly translates to shared benefits for all participating companies.

Indeed, Saylor cited Strive's purchase of its own securities as a concrete example of how the two companies can strengthen each other. On March 11, Strive purchased $50 million worth of STRC shares, embarking on the creation of a complementary ecosystem. Saylor repeatedly emphasized the coexistence of the entire Bitcoin credit market, stating, "The value of our core capital is closely connected through a common market."

However, he drew a line, stating that the formation of a net asset value (mNAV) premium relative to market value is a task each company must prove for itself. He pointed out that valuation multiples do not automatically rise simply because the number of new issuers in the market increases. Saylor stressed that the biggest challenge facing the industry currently is not cutthroat competition between companies, but rather convincing the global capital markets of the institutional value of Bitcoin-backed bonds and preferred stock securities.

Bitcoin financial companies, united by common digital capital, are building a common front for market expansion beyond individual competition. Market attention is focused on whether the digital credit product lineup, led by Strategy and Strive, can attract significant mainstream funds from Wall Street and establish itself as an institutional financial product.

[Article Key Summary]

-Michael Saylor stated that Strategy (MSTR) and competitor Strive (ASST) must coexist to expand the Bitcoin (BTC) based digital credit market.

-He explained that companies holding Bitcoin as a shared asset have a structural partnership that allows them to jointly reap the rewards of value appreciation.

-Convincing global capital markets of the value of Bitcoin credit securities was presented as a priority over competition between issuers.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*