Strategy founder Michael Saylor has developed a proprietary Bitcoin (BTC) credit model aimed at evaluating cryptocurrency-backed mortgages. The initiative responds to the Federal Housing Finance Agency’s (FHFA) ongoing assessment of crypto mortgages and their implications for the housing market.
The model incorporates key variables including loan duration, Bitcoin collateral adequacy, current BTC market price, volatility metrics, and annualized return rate (ARR) forecast spreads. These parameters are designed to systematically quantify risk exposure and loan viability in crypto-secured lending scenarios.
Saylor has made the credit model publicly available to facilitate industry understanding and adoption. The framework provides financial institutions and regulators with analytical tools to navigate crypto mortgage underwriting as the FHFA intensifies its examination of digital assets in housing finance.