Michael Saylor

Okay, well, the investors are investing in the company because they want more Bitcoin. They don't want Bitcoin performance. They want to invest in a stock that can outperform Bitcoin. So we are a Bitcoin treasury company. And the way to think about us is if you just want straight Bitcoin exposure, you buy iBit from BlackRock. And that's like overnight deposits.

I'm buying, you know, a million dollars of Bitcoin and if Bitcoin goes up 50% a year, I'm getting 50% a year and I'm getting the downside and the upside. MicroStrategy will sell you bonds. We're basically the leading issuer of Bitcoin-backed bonds in the market. So what if you wanted the upside of Bitcoin without the downside? I want like 75% of the upside, but no downside or something like that.

I'm buying, you know, a million dollars of Bitcoin and if Bitcoin goes up 50% a year, I'm getting 50% a year and I'm getting the downside and the upside. MicroStrategy will sell you bonds. We're basically the leading issuer of Bitcoin-backed bonds in the market. So what if you wanted the upside of Bitcoin without the downside? I want like 75% of the upside, but no downside or something like that.

You buy the convertible bond. And so a lot of investors of ours are bondholders and what they want is low risk, low volatility Bitcoin. And you can do that through those fixed income instruments. And then the equity holders, they want high voltage Bitcoin. They want 1.5x or 2x Bitcoin.

You buy the convertible bond. And so a lot of investors of ours are bondholders and what they want is low risk, low volatility Bitcoin. And you can do that through those fixed income instruments. And then the equity holders, they want high voltage Bitcoin. They want 1.5x or 2x Bitcoin.

And so you can imagine when I give someone half the return of Bitcoin in the bond, I can give the difference to the equity holder. So I'm stripping the risk and the vol and the performance off of the bonds. I'm handing it to the equity holder. And then you've got derivatives and the options, guys. They want 10x Bitcoin. And they want 10X long and 10X short.

And so you can imagine when I give someone half the return of Bitcoin in the bond, I can give the difference to the equity holder. So I'm stripping the risk and the vol and the performance off of the bonds. I'm handing it to the equity holder. And then you've got derivatives and the options, guys. They want 10x Bitcoin. And they want 10X long and 10X short.

So ultimately, you've got different classes of investors. You've got the 10X short, the 10X long, the 3X. There's actually two interesting ETFs, MSTU and MSTX. I think MSTU went from like nothing to $2 billion in AUM in three weeks. And MSTX last I checked out a billion. So imagine an ETF that siphons up two to $3 billion of capital in like a few weeks, no marketing.

So ultimately, you've got different classes of investors. You've got the 10X short, the 10X long, the 3X. There's actually two interesting ETFs, MSTU and MSTX. I think MSTU went from like nothing to $2 billion in AUM in three weeks. And MSTX last I checked out a billion. So imagine an ETF that siphons up two to $3 billion of capital in like a few weeks, no marketing.

And what they offer you is 2X microstrategy exposure. So when I think about it, I'm like, well, if we're hitting, if MSTR is 1.5X Bitcoin, then those things are 3X Bitcoin. And then the other bonds are like 0.75% of Bitcoin. Mm-hmm. What we're really doing is we're refining this crude capital. I use the analogy of standard oil or refinery.

And what they offer you is 2X microstrategy exposure. So when I think about it, I'm like, well, if we're hitting, if MSTR is 1.5X Bitcoin, then those things are 3X Bitcoin. And then the other bonds are like 0.75% of Bitcoin. Mm-hmm. What we're really doing is we're refining this crude capital. I use the analogy of standard oil or refinery.

You put crude oil in one side of the refinery and out comes kerosene, gasoline, and asphalt. And of course, you put kerosene in the jet engine, but you don't put crude oil in. And so what people want is they want refined petrochemical products. Or you could think of us as a transformer. I want high voltage power and I also want low voltage power for my daughter's hairdryer.

You put crude oil in one side of the refinery and out comes kerosene, gasoline, and asphalt. And of course, you put kerosene in the jet engine, but you don't put crude oil in. And so what people want is they want refined petrochemical products. Or you could think of us as a transformer. I want high voltage power and I also want low voltage power for my daughter's hairdryer.

And you're like, well, you know, you're losing, you know, if I put low voltage in a battery and I put it in my little kid's toy, it's very inefficient. There's a massive markup in it. But the point is the family wants batteries for the kid's toys. They don't want to electrocute Junior, right? So what we're doing is providing low voltage Bitcoin, high voltage Bitcoin.

And you're like, well, you know, you're losing, you know, if I put low voltage in a battery and I put it in my little kid's toy, it's very inefficient. There's a massive markup in it. But the point is the family wants batteries for the kid's toys. They don't want to electrocute Junior, right? So what we're doing is providing low voltage Bitcoin, high voltage Bitcoin.

And the only way to do that is to have a 100% Bitcoin balance sheet. Because I have to have the $30 billion of Bitcoin to sell you the $3 billion of bonds that are 10x over collateralized that also give you the return of Bitcoin and the frequency of Bitcoin. Half of this is the return, but the other half is the volatility.

And the only way to do that is to have a 100% Bitcoin balance sheet. Because I have to have the $30 billion of Bitcoin to sell you the $3 billion of bonds that are 10x over collateralized that also give you the return of Bitcoin and the frequency of Bitcoin. Half of this is the return, but the other half is the volatility.

The reason those instruments have value is because they're volatile, because I can arbitrage them and sell the volatility. So a lot of times people think, Volatility is a bad thing, but I would say it's like radioactivity and heat.

The reason those instruments have value is because they're volatile, because I can arbitrage them and sell the volatility. So a lot of times people think, Volatility is a bad thing, but I would say it's like radioactivity and heat.

And a lot of people are afraid of a fire and they're afraid of radioactivity, but you can't have nuclear power without radioactivity and you can't have an internal combustion engine without a fire. And so MicroStrategy has put this crypto reactor in the middle of the company. And because we have that high volatility, high energy reactor, and people are like, aren't you going to diversify it?