Michael Saylor

So if you issue the credit, in order to actually make good on the credit, remember I said, where's the dividend coming from?

It's coming from the capital appreciation.

The real brilliance of the business model

is you're acquiring a capital asset that you're holding in perpetuity and you're never realizing the capital gain on it.

If you pay the dividend by remitting the unrealized capital gain back to the credit investor, the dividend becomes a return of capital dividend, which means it is also tax deferred.

So the basic principle is I'm entering into a capital investment that I expect to hold in perpetuity, and I'm paying a dividend on the unrealized capital gains through issuing a derivative instrument that allows the credit investor to collect dividends for a decade, tax deferred,

And should they die and pass that credit instrument to their heir, they get a step up in the basis.

So you could be a retiree, collect dividends for 10 years, not pay tax, pass it through to your heir.

They get a step up and they get 10 years of dividends that are also tax deferred.

So the thing that makes the entire structure work

is that you're making a capital investment for a credit investor and you're absorbing the uncertainty of the future and the volatility of the present on the balance sheet of the common equity in order to strip the risk and strip the volatility from the credit investor's portfolio.

And the credit investor...

is paying you handsomely for that, right?

And everybody's getting what they want, right?

The capital investors in Bitcoin get a benefit.

The equity investors in strategy get amplification of Bitcoin.

And the credit investor gets that stripped down low volatility digital, you know, instrument, digital yield instrument.

And so...

You don't really want to stop.

If someone were to give you $10 billion and you didn't buy Bitcoin, then you actually lose the 30% ARR that's paying the dividend.