Michael Saylor

A private investor with a Bloomberg cannot create MSTR stock, nor can they create STRC.

So we're creating two instruments that are, in both cases, derivatives of Bitcoin that

that people would rather trade than the underlying Bitcoin because they have a capital mandate or they have a certain view of the world or economic investment policy.

Okay, well, Brian, there is no margin.

There is no margin in the capital structure.

Let me make a point.

Margin loans are when I borrow against an underlying asset with the obligation to meet a collateral call on one or two days notice.

So margin debt is one day money.

And if you actually borrow it against the underlying Bitcoin, if you're a retail investor, you're basically borrowing the money for a day.

And when you have volatility, that creates a lot of anxiety.

When we sell STRC, we're selling equity.

It's the exact opposite.

If you give me a million dollars for my equity, for common equity, I have the money forever with no obligations.

Okay, that's the longest duration money.

When you give me a million dollars to buy a preferred equity with a variable dividend, if you read the securities document and you understand what that security is,

You're entering into a perpetual swap.

I am agreeing as the issuer to give you SOFR, the standard overnight funds rate, plus a credit spread determined by the company.

And you are agreeing to give the company that capital forever.

And you're not getting the money back.

So it's not an overnight loan.