Strategy, the largest institutional Bitcoin investor, drew attention this week with its BTC sales.
Market experts say that Strategy’s BTC sale had a limited impact on the price, and that the price remained resilient despite the sale.
On the other hand, while Strategy’s announcement regarding its sales is said to balance the risks, the company’s founder, Michael Saylor, made a new announcement about Bitcoin.
Announcing the news with his usual X-shaped post, Michael Saylor revealed that his company has published a Bitcoin-based credit rating model.
Accordingly, Strategy (MSTR) has published a Bitcoin-based credit rating model on its official website.
Saylor explained that by entering metrics such as BTC’s price, volatility, and annual rate of return (ARR), users can determine the risk level of Strategy’s stock (MSTR) and preferred stock (STRC), and the potential number of years for dividends to be paid.
According to the data shared, if BTC trades at around $62,000 with volatility of approximately 40%, the dividends could be sustained for about 30 years.
In her post, Saylor also argued that digital loans are more transparent compared to traditional credit instruments because the primary market risk factor is Bitcoin.
At this point, Saylor stated that Bitcoin is an observable and homogeneous asset, allowing analysts to continuously assess the credit risk associated with BTC, while investors can shape their valuation and trading decisions using their own statistical models.
The model published by Strategy is seen by market analysts as a new step that supports the company’s long-standing argument that “Bitcoin can be used as a key risk indicator in corporate finance” with a concrete analytical tool.
