Michael Saylor

So when I need yield, I'm rehypothecating it and someone short selling it.

And when I need a loan, if you want a conventional loan against Bitcoin, you're paying 11%, 12% sometimes.

But if you went to a crypto exchange, they might give you the same loan for 2%, 3%.

But the catch is the cheap money requires that you transfer the Bitcoin and they rehypothecate it.

So...

So if someone's pledging $100 billion of Bitcoin as collateral on the crypto economy in order to borrow $10 or $20 billion of cash to spend, then you're short selling $100 billion of Bitcoin.

So you're short selling 10-year supply of Bitcoin.

So I would say probably the thing that's holding the price back

is rehypothecation of the underlying crypto asset in the crypto economy.

And the thing that will drive the price to the moon is people stop rehypothecating.

And we call that asset back, we put it in cold storage, and then whoever sold it short has to buy it back and the price moves north.

But of course, the reason that people don't do that is because up until now, even today, it's very difficult to get a conforming loan or a conventional loan against Bitcoin.

So people are forced into the crypto economy and this dynamic of re-hypothecation.

So bank credit networks will be very big.

I mean, $100 billion or more bank credit could form.

And not only will you have less demand to sell $100 billion of Bitcoin, but you will also have people migrating from rehypothecation and non-rehypothecation, and that'll create a short squeeze on the other side.

The other dynamic is digital credit.

So my company is selling STRC, it's digital credit instrument.

So the other, like two, three weeks ago, we sold $1.2 billion of it.

When we sell $1.2 billion of STRC, we buy back $1.2 billion of Bitcoin.