The core strategy is issuing Bitcoin-backed debt or debt-like instruments, such as convertible bonds and preferred stock (for example, convertible preferred stock with the ticker TRYK). Saylor points out that this is creating a new credit theory: lending based on actual assets held rather than expectations of future cash flows. Due to Bitcoin's high volatility and enormous appreciation potential, Strategy can offer yields above market average (paying junk bond rates), while its massive Bitcoin holdings provide de facto "investment-grade credit" (even though rating agencies may not see it that way).

Facing external doubts about the risk of Bitcoin crashes and the company's stock premium, Saylor appears confident. He emphasizes that many of the instruments the company issues, particularly preferred stock, are "perpetual" with no maturity date, no strict collateral requirements, or margin call clauses.

"Bitcoin could fall 99%…there would be no margin calls coming," he said. He even believes that Bitcoin's volatility is actually advantageous for Strategy, because high volatility attracts traders, drives up the stock premium, and in turn makes the terms for issuing convertible bonds and preferred stock more favorable, forming a positive, self-reinforcing "second-order reflexivity" loop.