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Michael Saylor Bets on Solana to Power the Future of Programmable Digital Credit

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Michael Saylor named Solana as the primary blockchain for deploying programmable digital credit at scale.
  • Strategy’s STRF converts Bitcoin’s economic energy into structured cash flows with principal protection for investors.
  • Saylor introduced BTC rating, BTC risk, and credit spread as core metrics for measuring digital credit risk.
  • A reflexive flywheel effect ties credit creation to Bitcoin demand, driving equity value across the broader ecosystem.

Michael Saylor has made a bold claim about the future of programmable digital credit. The Strategy executive chairman recently stated that Solana will serve as the primary blockchain for deploying this next generation of digital credit instruments.

His remarks came alongside a detailed breakdown of Strategy’s STRF product and a broader framework for Bitcoin-backed credit.

The statement drew attention from across the crypto industry given Saylor’s long-standing association with Bitcoin maximalism.

Saylor Points to Solana as the Infrastructure for Digital Credit Deployment

Saylor’s choice of Solana as the deployment platform surprised many observers in the crypto space. He cited the blockchain’s speed, accessibility, and scalability as key reasons for the selection.

According to Saylor, programmable digital credit requires infrastructure that can handle tokenized instruments operating at scale. Solana, in his view, meets those technical requirements more effectively than other available options.

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His vision extends beyond a single product. Saylor outlined how digital credit can be embedded into ETFs, tokens, bank accounts, and layer 3 blockchain solutions.

Each of these serves as a building block for creating digital yield and accessible digital money. Together, they form an interconnected system designed to move value across digital rails efficiently.

The programmable nature of this credit is central to Saylor’s argument. By encoding credit terms directly into blockchain infrastructure, issuers can automate dividend payments, collateral checks, and risk adjustments.

This removes the friction associated with traditional credit instruments and opens access to a much wider investor base. Solana’s architecture makes this level of programmability practical at a global scale.

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Saylor also described a reflexive flywheel effect that programmable digital credit can trigger. Credit creation drives Bitcoin demand, which raises Bitcoin’s price and increases equity value.

That, in turn, strengthens the entire ecosystem and encourages further credit issuance. Deploying this mechanism on Solana, he argued, amplifies its reach and speed considerably.

Strategy’s STRF Lays the Foundation for Bitcoin-Backed Credit on Chain

STRF sits at the core of Saylor’s digital credit framework. Strategy converts Bitcoin’s economic energy into structured cash flows by stripping away risk, dampening volatility, and extracting yield.

The result is a variable preferred security that offers both principal protection and higher returns than traditional credit. Investors also benefit from return-of-capital tax treatment, which reduces their overall tax liability directly.

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Saylor introduced three metrics for evaluating digital credit risk: BTC rating, BTC risk, and credit spread. These tools give investors a clear and measurable way to assess collateral coverage and under-collateralization probability.

Excess Bitcoin volatility is transferred to MSTR common equity holders rather than to credit investors. This structure protects STRF holders during market downturns.

STRF’s track record supports Saylor’s framework. The product maintained its value and continued paying dividends through significant Bitcoin price drawdowns.

That stability makes it competitive with traditional credit instruments that are often tax-inefficient and difficult to access. STRF, by contrast, is designed to be widely accessible and straightforward to hold.

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Corporate treasuries represent a major target market for this product. Saylor argued that companies allocating a portion of holdings to STRF could potentially double their cash flow.

With Solana as the deployment layer, that access becomes even broader and more seamless for institutional and retail participants alike.

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Crypto World

Forward Industries Funds Share Buyback With Solana-Backed Loan

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Stocks, Loans, Solana

Forward Industries, a publicly traded company with a Solana-focused treasury strategy, has launched a share repurchase program funded through a crypto-backed loan from Galaxy Digital LLC, underscoring how digital assets are increasingly being used in traditional corporate finance.

The company said Thursday it will repurchase 6,164,324 shares of its common stock from an unnamed institutional investor for approximately $27.4 million, reducing total shares outstanding to 76,977,809.

Cointelegraph’s email to Forward seeking further information on the identity of the selling institutional investor was not answered prior to publication.

Stocks, Loans, Solana
A partial list of Forward Industries’ institutional investors. Source: Fintel.io

Public filings indicate that only six institutional investors in Forward Industries hold enough shares to sell that volume back to the company. According to filings data compiled by Fintel.io, one of those holders is Galaxy Digital LP (8.68 million shares, as of Sept. 18, 2025) and another is Galaxy Group Investments LLC (8.11 million shares, as of Feb. 18, 2026.)

To fund the buyback, Forward secured a $40 million loan from Galaxy Digital LLC at an interest rate of 3.4%. The loan is collateralized by the company’s Solana (SOL) holdings, which total 7,013,536 SOL — valued at approximately $613 million at current market prices.

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The structure allows Forward to access liquidity without liquidating its crypto reserves, while continuing to generate yield through staking. The move reflects a broader trend of companies leveraging digital asset treasuries to optimize capital structure and potentially enhance shareholder returns.

The share repurchase appears to be part of Forward Industries’ November authorization to buy back up to $1 billion of its stock on an ongoing basis. At the time, the company said the program would provide financial flexibility amid heightened volatility in the crypto market.

That volatility has intensified in recent months, with Solana’s price falling below $90. The buyback may also help support Forward Industries’ stock, which is down 87% from its September peak.

Forward Industries (FWDI) stock. Source: Yahoo Finance

Related: Crypto’s 2026 investment playbook: Bitcoin, stablecoin infrastructure, tokenized assets

Crypto treasury strategies face pressure

Forward Industries began aggressively accumulating Solana last year, when crypto treasury strategies gained traction during the bull market. The company has since built the largest publicly traded SOL treasury, with at least 18 other public companies adopting similar strategies, according to industry data.

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By February, these companies collectively held more than $1.5 billion in unrealized losses tied to the broader crypto market downturn. A significant portion of those losses is attributed to Forward Industries, which is down roughly $972 million.

Forward Industries ranks as the largest public holder of Solana. Source: CoinGecko

The sector’s volatility is likely to result in broad consolidation among crypto treasury companies, Wojciech Kaszycki of crypto infrastructure company BTCS told Cointelegraph.

Many treasury companies are under pressure as declining crypto prices push their valuations below the value of the digital assets they hold, while limited cash flow makes it harder to sustain operations.

Related: Crypto Biz: A Bitcoin treasury shareholder revolt