Thank you for joining us today. I'm Michael Saylor, the executive chairman of Strategy. I'm here with Fang Lee, our president and CEO, and we're here to talk about an amendment to pay daily dividends.
This is the latest exciting development in the digital credit space. As you know, digital credit is a new asset class. It's scaled from nothing to 16 billion over 20 months. There have been a host of IPOs. We've done about five, but there are three other IPOs from other digital credit issuers, and we think that this is just a revolutionary new innovation in the credit markets. And one of the great things about digital credit is just how quickly it's evolving.
We have five credit instruments. What we've seen is the most successful of our five digital credit instruments is STRC. And we believe the reason it's successful is because it has the lowest volatility and the highest liquidity. And the way that you create low volatility and high liquidity is to shorten the duration of the instrument and to actively manage the credit, either actively managing the dividend rate, actively managing the capital markets activity around it, actively managing the reserves. And the higher the frequency of those adjustments, the lower the volatility of the instrument.
Why is digital credit growing so fast? It's because the effective yields are extraordinary. So it's very high-performance credit. Digital credit has more liquidity, higher effective yield, higher tax-equivalent yield than any of the other credit instruments in the marketplace. And it's novel, it's new. So many people haven't heard about it. But if you're looking for performance and liquidity, then digital credit is offering that. That's why it's growing so rapidly.
STRC itself is backed by US dollar assets. That gives us a 3.8-year USD duration. It's backed by BTC reserves. We've got 68 billion right now of BTC reserves. That's about 42 years of dividend duration. STRC is six times over-collateralized. That buyback program has been executed to about 1.1 billion in quantity.
STRC has currently got more than a hundred million dollars of daily liquidity and in excess of 9 billion in notional outstanding. You know, by any measure, it's one of the most successful preferred stocks ever. And what we're doing here today is to make it better.
In addition to STRC being a very powerful credit instrument, it's also emerging as a platform for digital money and digital yield. There's a really exciting, fast-growing ecosystem of partners, and there are a lot of different use cases. So let me share some of those. What you'll see is there's a set of DeFi innovators that are creating stablecoin and stablecoin-type instruments on top of STRC. There are a lot of digital assets innovators that are tokenizing STRC. We see STRC finding its way into funds, ETFs, and ETPs. And people are building cash and yield accounts based on STRC.
The thing that we can do for them is to smooth out the cash flows, increase the liquidity, decrease the volatility. The stronger STRC is, then the better a platform it is for all of these other innovative products. And we think they're all new right now, but they're destined to grow. And STRC is destined to grow.
Our objective is for STRC to trade between 99 and $100, but generally we're targeting a $100 par value. When it trades above 100, we have the ability to sell it into the market to strip the volatility above 100. If it falls below 100, we have the ability to buy it in order to damp the volatility. The closer we are able to get it to 100, the lower the vol. The lower the vol, the easier it is to get in and get out, the higher the frequency of the instrument. And so, as you can imagine, we're thinking all the time about anything we can do in order to cause STRC to target 100 more effectively.
And to that end, we've gone through five different versions of STRC. The first version of STRC, when we launched the IPO in July of 2025, allowed for monthly dividend payments. That was an innovation. Variable-rate dividend yields each month, that was the second innovation. And then we tied and tethered an at-the-market shelf registration to the instrument. That was a third innovation. By putting those three things together, we were able to create the most successful digital credit instrument in the market. In December, we upgraded it by adding in US dollar reserves to back STRC.
Later that year, we put in place an initiative to provide semi-monthly dividends, so double the frequency of the cash flows. And then we followed that up by putting in place a STRC buyback program so that not only do we sell it above 100, but we can buy it back below 100. And that was a big innovation. A second innovation was to improve the governance and transparency around the US dollar reserve. So we committed to the credit investors that US dollar reserves would only be used to pay dividends and interest, and we put in place a one-year minimum. And so all of those things strengthened the backing of STRC.
And that takes us to now version five. And the proposed next upgrade to digital credit is to convert our semi-monthly dividends to daily dividends, dramatically increasing the frequency of the cash flows, and we hope dampening the volatility even further and therefore improving liquidity and improving this product so it reaches its full potential in the marketplace. So with that, I'm going to pass the floor to Fang, who's going to discuss the details, our thinking, and why we think this is in the best interest of all of our investors.
