Michael Saylor

There is no collateral call.

You have no redemption right.

You can't, it's not like you can go to the bank and say, give me the million dollars back tomorrow.

In fact, you're not getting the money back ever, right?

It's an equity investment.

If you wish to sell the instrument, you can sell it into the market, but you're selling it to other investors.

And so the magic of this structure is you're creating a perpetual swap between

That's got stochastically, if you were to actually do the statistical modeling, it's more like a 20 year duration instrument.

So like the issuer has the money for about 20 years, right?

Not, if you were to borrow money from a crypto exchange, you have the money for 20 minutes.

And if you were to borrow the money in a conventional margin loan, you have the money for 20 hours to two or three days.

But so, I mean, Bitcoin could fall 95%.

It doesn't create any, there is no liquidation.

It's not a credit instrument or a debt instrument in that way.

It doesn't come due in five years.

It doesn't come due ever, right?

And so this is the ideal kind of credit instrument for a volatile environment because the way it works for the company is the company is paying a dividend to stabilize it.

But in the event that the credit of the company improves, if there's too much demand, the company can reduce the dividend rate in order to decrease the demand.

And if SOFR falls, if SOFR falls to 50 basis points, the company's obligation is to pay you 50 basis points.

I mean, that's... And what happens if the company can't pay that?