Michael Saylor: Transparency of Digital Credit Will Allow Investors to Apply Their Own Statistical Models to Guide Valuation and Trading Decisions

CoinFeed July 9 news, Michael Saylor posted that the so-called Digital Credit is transparent because its core market risk comes from Bitcoin, an observable and homogeneous asset. Analysts can continuously assess credit risk linked to BTC, and investors can accordingly build and apply their own statistical models to value and trade related credit products. Saylor also mentioned that his team has released a self-developed credit model that allows users to input parameters such as BTC price, volatility, and annualized yield to calculate the model-implied BTC risk and credit spread, aiding Digital Credit pricing.