Bitcoin Bombshell: Saylor Reveals When He Would Sell - EXCLUSIVE

Stretch converts Bitcoin upside into a recurring ~11–11.5% monthly variable dividend by monetizing portions of BTC gains within a 4:1–5:1 over‑collateralized preferred structure, offering an income profile distinct from owning spot Bitcoin while retaining collateral protections if BTC falls sharply.

Management reports very strong risk‑adjusted performance (Sharpe ~2.5) and plans product tweaks (e.g., dividend frequency) intended to further reduce volatility, framing Stretch as materially superior to typical credit, equity and commodity strategies given its yield advantage versus cash instruments.

The product has achieved rapid scale—digital credit AUM reached roughly $8.5B in eight months with Stretch sales accelerating from ~$1.5B in March to ~$3.2B in April—backed by a cited ~$85B enterprise value and ~$58B of equity that management says supports large credit issuance.

The firm leans on a large unencumbered BTC position (~818,000 coins, management cites 'almost 4% of the Bitcoin supply') and equity capital to back dividends, planning to monetize only small amounts (e.g., ~20bps/month) while remaining net buyers and noting break‑even math that requires only modest average BTC returns (~2.3%) to sustain payouts.

Sustainability of ~11% dividends is explicitly tied to management's bullish return assumptions—management models roughly 30% annual BTC appreciation—and to rapid investor inflows (they forecast scenarios like $1B flowing in within weeks) to grow the yield‑coin ecosystem to multi‑billion scale.