A brief detour to the fundamentals so we can make sense of how this works.

Traditional corporate credit comes in the form of bonds. Generally issued my a large financial institution to a corporate entity who uses the funds to invest in their business or operate more efficiently.

There is a fixed payment that the company "guarantees", potentially secured against certain assets.

All that is then packaged and sold to retail investor, who have zero transparency on how funds are used or what assets are collateralized.

Historically, personal finance advisor would recommend that bonds represent up to 40% of your portfolio, depending on your age and other factors.

Average payouts have varied historically, but hovered around 5% in the last decade.

Most retail investors buy corporate bonds as part of a balanced portfolio, rarely if ever paying attention to risk, as the payout is "guaranteed", despite a 1% default rate.

The average credit instrument provides less return than the expansion of the US dollar! You lose purchasing power when you invest.

One of the oldest stores of value is Gold. It has survived wars, famines and cataclysms.

For simplicity of math, let’s assume Gold appreciates at 20% per year (it averaged 13-15% over the last decade), can we engineer a product that is extremely stable and pays 10% in dividends over time? This would be a winning proposition for the buyers and seller of this product.

We can create a Gold treasury flywheel that uses this arbitrage to “amplify” Gold on one side and issue a stable yield product on the other.

These are the key steps:

A company operating this would see the Gold per share increase over time, while paying dividends on the other product.

This is the genius behind combining these concepts in the digital era. While it is possible to do with Gold, this formula is exceptionally powerful with Bitcoin.

Not only is Bitcoin a superior product to Gold from a store of value perspective, it is in particular fully auditable in real time.

The biggest challenge to Bitcoin adoption at a corporate scale has been volatility. While that is reducing with the growth of the asset, it is now possible to leverage the above strategy to build on Bitcoin while keeping assets within a VERY tight range.

In fact, over the last 30 days, by one key measure of volatility (Sharpe Ratio) Digital Credit has proven to be outperforming any historical asset. It is simply extremely stable.

Here’s how this works:

Two key companies are running this operation in the United States:

While you can use the common stock ( $MSTR ( ▼ 5.11% ) , $ASST ( ▼ 5.2% ) ) to amplify your BTC exposure and take risk, the key product I use is the Digital Credit or Perpetual Preferred ( $STRC ( ▲ 0.15% ) , $SATA ( ▲ 0.08% ) ).

This is so predictable that it flows perfectly into my overall system. It’s so stable, that I park any excess cash into it while I decide what to do.

One note on risk: the common stock of both of these is highly volatile. The Perpetual Preferred is designed not to be and is proving itself every day. Review the additional resources for your own conclusions!

11% is just the start. Subscribe and I’ll share how I use STRC to get 20%+ yearly returns.

Disclaimer: All material is provided for educational purposes only and does not guarantee any financial results. This is not financial, legal, or tax advice. I am not a financial professional. Results vary and are dependent on individual effort, timing and circumstances. There is no solicitation to invest.