Michael Saylor

But ultimately, the fundamental idea you got to understand is you're holding a capital asset that you expect over the course of 30 years to go up X 10% a year.

And you're paying the credit investor a fraction of that.

One third X, one half X.

And the capital investor has a long time horizon.

They can hold it for a decade.

The credit investor isn't willing to accept the volatility for a week.

And so the reason it works is because credit investors will accept a lower return if you can strip the volatility and give them principal protection and over collateralization.

And the equity investor wants to outperform the capital asset.

They want more leverage on that.

They want 2x Bitcoin.

And they've got a long time horizon.

They've got a high tolerance for volatility.

And...

There's a stack of derivative investors, the people that are trading the call options and the put options.

They actually want the leverage and they want the volatility because that makes their options more valuable and it gives them more leverage.

And so you're creating a derivatives market and equity market.

You're feeding a capital market and you're creating a credit instrument.

And those are four different sets of investors with four different profiles.

And they need a public company that is transparent in order to create those securities.

Like they can't create them.