Saylor folds USDT into Bitcoin stack as Strategy sells 6,948 BTC

Michael Saylor's Strategy has designated Tether's USDT as the primary transactional gateway in a new Digital Finance Stack, shifting from Bitcoin maximalism as its 840,447 BTC reserve takes a commercial role.

"You can live on Bitcoin. You can also build on it. Crude oil is valuable, but civilization gets more utility by refining it into gasoline, jet fuel, plastics, lubricants, and asphalt. Bitcoin is Digital Capital. Innovation turns capital into credit, money, and currency," Saylor, executive chairman of Strategy, said.

The framework distributes assets across the monetary spectrum, with Bitcoin reserved exclusively as "heavy" digital capital and the ultimate defensive asset. USDT, the zero-volatility instrument from Tether, is meant to handle fast everyday payments. Between them sit two new structured products: STRC, a semi-stable fixed-income credit instrument represented by the company's Bitcoin-backed preferred stock, and SR-strcUSX, a hybrid token combining fiat stability with debt-market yields. A top layer, Digital Equity, connects all levels into a single business.

The framework arrives as Strategy's balance sheet faces stress. The company broke its "never sell" rule this summer, liquidating 6,948 BTC worth $432.5 million to pay dividends and maintain liquidity, while STRC preferred stock trades below its $100 par value at $94.48. CEO Phong Le said this week that Strategy expects to return to net Bitcoin purchases by the end of 2026.

Monetization program drives two straight weeks of sales

Strategy sold 1,690 BTC worth $109 million in the past week, its second consecutive week of sales, after unloading 1,638 BTC worth $105 million the week before. The sales fall under a newly introduced BTC monetization program designed to support the firm's cash reserve and dividend payments. Saylor said the firm increased its US dollar reserve by $650 million in the past week and repurchased $109 million worth of STRC, the perpetual preferred stock paying 12 percent annual dividends.

Saylor has defended the sales, saying his "never sell" mantra applied only to his personal wallet. "When I say 'Never Sell Your Bitcoin,' I speak as one saver to another. I have never sold mine. Not one satoshi. Strategy is a public company, not my wallet," he said.

What the stablecoin pivot means

The USDT designation marks a notable compromise for Saylor, who spent years championing uncompromising Bitcoin maximalism. The move positions Tether's stablecoin as a bridge between Bitcoin's defensive role and everyday commerce, potentially widening USDT's institutional footprint. It also shows Strategy attempting to turn its large reserve from a passive, volatile burden into an active commercial fintech instrument.

Saylor has said he expects Bitcoin to appreciate about 30 percent annually for the next 20 years, then slow to roughly 20 percent a year, a trajectory that would push BTC toward $12 million by 2046 from its current level near $64,500. Macro trader Arthur Hayes has tied any run toward seven figures to an AI credit bust rather than corporate buying. The strategy's success hinges on whether the new credit instruments generate enough yield to support dividend payments without forcing further Bitcoin sales.

This article is for informational purposes only and does not constitute investment advice.