Michael Saylor's view on the essence of digital credit: How to extract value from digital capital

BlockBeats reports that Michael Saylor recently shared in-depth thoughts on the operational logic of digital credit. In his view, the core function of digital credit is not simply capital transfer, but a systematic financial engineering solution.

The Five-Level Value Transformation Mechanism of Digital Credit

According to Michael Saylor, digital credit achieves value enhancement through a series of precise operations:

First is Risk Isolation. Digital capital inherently exhibits volatility, and digital credit removes this non-systematic risk from core assets, enabling investors to obtain relatively stable returns.

Next is Volatility Buffering. Through structural design, digital credit reduces the direct impact of underlying asset fluctuations on investors, preserving appreciation potential while lowering short-term pressure risks.

Term Optimization is the third layer. Michael Saylor emphasizes that digital credit can re-match capital needs across different cycles in the time dimension, allowing long-term capital to flow more smoothly and short-term capital to earn returns.

Additionally, there is Currency Flexibility. The cross-chain and cross-currency features of digital assets are fully utilized, allowing investors to adjust currencies based on market conditions to avoid systemic risks associated with a single currency.

Finally, there is Yield Extraction. After completing the above four optimization steps, digital credit ultimately extracts the added value from the entire chain through interest rate spreads, fees, or other mechanisms.

This logic indicates that digital credit is not only a financing tool but also a complete financial value chain.