Michael Saylor
👤 SpeakerAppearances Over Time
Podcast Appearances
Customers.
Yeah, well, the customers of the software company, they're getting MicroStrategy software. They're delighted with the software.
Yeah, well, the customers of the software company, they're getting MicroStrategy software. They're delighted with the software.
Investors. Let me rephrase that. Investors.
Investors. Let me rephrase that. Investors.
Investors.
Investors.
Yeah.
Yeah.
Okay, well, the investors are investing in the company because they want more Bitcoin. They don't want Bitcoin performance. They want to invest in a stock that can outperform Bitcoin. So we are a Bitcoin treasury company. And the way to think about us is if you just want straight Bitcoin exposure, you buy iBit from BlackRock. And that's like overnight deposits.
Okay, well, the investors are investing in the company because they want more Bitcoin. They don't want Bitcoin performance. They want to invest in a stock that can outperform Bitcoin. So we are a Bitcoin treasury company. And the way to think about us is if you just want straight Bitcoin exposure, you buy iBit from BlackRock. And that's like overnight deposits.
I'm buying, you know, a million dollars of Bitcoin and if Bitcoin goes up 50% a year, I'm getting 50% a year and I'm getting the downside and the upside. MicroStrategy will sell you bonds. We're basically the leading issuer of Bitcoin-backed bonds in the market. So what if you wanted the upside of Bitcoin without the downside? I want like 75% of the upside, but no downside or something like that.
I'm buying, you know, a million dollars of Bitcoin and if Bitcoin goes up 50% a year, I'm getting 50% a year and I'm getting the downside and the upside. MicroStrategy will sell you bonds. We're basically the leading issuer of Bitcoin-backed bonds in the market. So what if you wanted the upside of Bitcoin without the downside? I want like 75% of the upside, but no downside or something like that.
You buy the convertible bond. And so a lot of investors of ours are bondholders and what they want is low risk, low volatility Bitcoin. And you can do that through those fixed income instruments. And then the equity holders, they want high voltage Bitcoin. They want 1.5x or 2x Bitcoin.
You buy the convertible bond. And so a lot of investors of ours are bondholders and what they want is low risk, low volatility Bitcoin. And you can do that through those fixed income instruments. And then the equity holders, they want high voltage Bitcoin. They want 1.5x or 2x Bitcoin.
And so you can imagine when I give someone half the return of Bitcoin in the bond, I can give the difference to the equity holder. So I'm stripping the risk and the vol and the performance off of the bonds. I'm handing it to the equity holder. And then you've got derivatives and the options, guys. They want 10x Bitcoin. And they want 10X long and 10X short.
And so you can imagine when I give someone half the return of Bitcoin in the bond, I can give the difference to the equity holder. So I'm stripping the risk and the vol and the performance off of the bonds. I'm handing it to the equity holder. And then you've got derivatives and the options, guys. They want 10x Bitcoin. And they want 10X long and 10X short.
So ultimately, you've got different classes of investors. You've got the 10X short, the 10X long, the 3X. There's actually two interesting ETFs, MSTU and MSTX. I think MSTU went from like nothing to $2 billion in AUM in three weeks. And MSTX last I checked out a billion. So imagine an ETF that siphons up two to $3 billion of capital in like a few weeks, no marketing.
So ultimately, you've got different classes of investors. You've got the 10X short, the 10X long, the 3X. There's actually two interesting ETFs, MSTU and MSTX. I think MSTU went from like nothing to $2 billion in AUM in three weeks. And MSTX last I checked out a billion. So imagine an ETF that siphons up two to $3 billion of capital in like a few weeks, no marketing.
And what they offer you is 2X microstrategy exposure. So when I think about it, I'm like, well, if we're hitting, if MSTR is 1.5X Bitcoin, then those things are 3X Bitcoin. And then the other bonds are like 0.75% of Bitcoin. Mm-hmm. What we're really doing is we're refining this crude capital. I use the analogy of standard oil or refinery.