Strategy Inc. just gave Bitcoin-backed securities their own credit rating system. The company released an interactive credit model that lets users evaluate credit risk and yield spreads on its Bitcoin-collateralized instruments using real-time market data and adjustable assumptions.

The model lives on strategy.com/credit, and it represents a meaningful step toward bringing institutional-grade risk assessment tools to what Strategy calls “digital credit.”

What digital credit actually means

Digital credit, as Strategy defines it, refers to yield-bearing instruments collateralized by the company’s Bitcoin treasury holdings. These securities pay dividends or coupons, but their underlying credit risk is fundamentally tied to the value of Bitcoin rather than traditional business cash flows.

The new Digital Credit Capital Framework, unveiled on June 29, breaks down the pricing of these instruments into components that investors can actually interrogate. It separates the yield into a risk-free rate, the cost of hedging BTC exposure, and a residual credit premium.

Strategy tracks several proprietary metrics through this framework, including BTC Rating, BTC Risk, and BTC Credit spreads. These function somewhat like traditional credit ratings but are calibrated to the unique dynamics of holding a volatile digital asset as collateral.

The public dashboard, also accessible through bitcointreasuries.net, gives anyone the ability to plug in their own assumptions about Bitcoin price trajectories, volatility, and interest rates to see how the credit math changes.

The scale is hard to ignore

Digital credit assets have scaled from zero to approximately $14 billion in just 15 months.

Among the specific instruments, STRC has reached a valuation of approximately $3.4 billion, with yields ranging between 10.39% and 16.32% depending on the series.

Independent analysis has already started to emerge around these instruments. Onramp released a paper titled “The Simpler Trade: Digital Credit Risk Analysis” on April 30, which focused specifically on structural and credit risk considerations for Bitcoin-based instruments.

How the credit model works in practice

The interactive model lets users decompose yield into its component parts. Start with the risk-free rate, typically anchored to US Treasury yields. Then layer on the cost of hedging Bitcoin exposure, which fluctuates with BTC options-implied volatility. Whatever yield remains after those two factors is your credit spread, the premium investors earn for bearing the specific credit risk of Strategy as a counterparty.

According to the framework’s analysis, the current valuation of digital credit instruments may actually understate the risk relative to what options markets are pricing.

The framework also addresses dividend management and preservation of Bitcoin treasury value, outlining how the company manages this tension.

What this means for investors

The risk is that $14 billion in instruments backed by one of the most volatile major assets in financial markets represents concentrated exposure that no credit model fully captures. Bitcoin’s drawdowns have historically been sudden and severe, and the correlation assumptions built into any model become unreliable precisely when they matter most, during market stress.