Michael Saylor: How He’s Building The Future of MSTR

0:00Welcome to MSTR today in the treasury Titans. It is Thursday, it is September 3rd, it is JLD here and nothing in this video is financial advice. I wanna apologize for missing yesterday's episode. It was a day of travel for us. We woke up at 4 a.m. in Maine. We did an Uber down to Boston, got on a flight to Denver. Now I'm up in Breckenridge for a wedding. It's gonna be an amazing week. Anybody familiar with Breckenridge? Give me a shout in the comment section below. I haven't been here in a very long time. It would love any and all recommendations, but it's absolutely stunning and gorgeous here. As Bitcoin is having a little micro rally into the 78,000 range as I'm speaking, we love it. And Michael Seller says, that's good, but guess what? I'm playing. Buying Bitcoin is like playing golf.

1:01Rich people like to buy Bitcoin. And buying Bitcoin makes you rich. Oh my goodness, he equals it again. I need to buy some Bitcoin. I mean, these videos are just getting better and better. Loving it, loving the fist pump by Michael Seller. It's just so good. All right, let's move on to Stratju. Says our ambition is to hold the most capital, Bitcoin. And guess what? Stratju has the second largest total reserve capital. Here you go, Berkshire Hathaway at 364 billion, not even close. Then you have Stratju at 66 billion. And then you have nobody else that's even close. So guess what? It's working. The ambition is working. And then of course, we're going to move on over to Michael Seller who says, strategy now has more total reserve capital than every financial services company in the S&P 500 except Berkshire Hathaway.

2:03And I do love this actual comment by Jeff that says, Berkshire with 359 billion of decaying cash in US treasuries. It's only a matter of time, Michael, when the rest of the broader world suddenly recognizes Bitcoin as capital, the repricing could be violence. And I'm actually going to rephrase that for my own self to say the repricing will be violent. Fungley Chimes in by saying summer is unusually slow, but we've been busy at strategy over the last two months. Bitcoin and USD assets are up 34% to 72 billion. Net leverage down to 0% and back to buying Bitcoin. MSCR has outperformed Bitcoin and our press are paying dividends up to 10% plus fall could be quite interesting. And I'll tell you, I'm here in Breckneridge. The chill is in the air. Fall is looming. And I think it will be interesting. Chris says it has become a parent to me from DMs I received and interactions with people on X. How many people are down on MSCR after aping in during the parabolic run

3:06in late 2024? And by the way, I remember that run. I was in luckily before that run. I also aped in during that run. So I definitely have a lot of MSCR shares in the 200s, 300s and beyond. But man, Chris wants us to know that if you're one of them, I get it. It's tough. I know because at one point during the 22, 23-year-old market, I was down 80% had I not had conviction. I had a panic sold all my shares instead of kept buying. Three years on and that conviction is paid off many times over. If you do the work and know what you own, you will be telling a similar story in the years to come. Don't break. You got this. And my friends, everybody listening, don't break. You got this. Pio says, if you think that after a solid bull cycle, Michael said, isn't going to fully bull approve stretch and make sure that they are in a position to back it up in a bear market and keep it between $9900 and $100, you're out to lunch. Stretch is like a year old bro. Let's go Pio. Adam dropped some facts here. Two years ago, Bitcoin is at 59,000. Strategies, liquid assets are 13.5 billion dollars.

4:08Today, Bitcoin is at 77,000. Strategies, liquid assets are 72 billion. Bitcoin is up 31%. Sailors liquid asset pile is up 438%. And somehow every Monday, half the effing boron's on this website from a voluntary committee to explain that Michael said it was once again, bot the top. What do they do? They form a volunteer committee to explain that Michael sailor has once again bot the top. These people are so clueless. It's so my numbing. Adam says brother, he is turning the global capital markets into a Bitcoin vacuum cleaner while you were waiting on the quote unquote perfect entry. The man took a 13 billion dollar liquid asset base and turned into 72 billion dollars. Maybe the top was the friends you made along the way. Okay, Chris says Bitcoin is a $100 trillion idea. MSR is a $10 trillion idea. Stretch is a $1 trillion. And that is Chris likes to say, do you understand?

5:10These are massive opportunities. Bitcoin archive says breaking Microsoft and strategy now ranks number seven in liquid assets at 100 K Bitcoin strategy would flip meta. So it would jump meta Microsoft, it would jump meta and it would start creeping up on good old Amazon. Let's flip and go. And like I said, the markets kind of pump a little bit this morning. Let's see if it holds a SST, some matches through $25. Are you not entertained? Are you not entertained? And we have a great entertaining clip coming up when we get back from thinking our sponsors. Quick pause because this might matter more than your next Bitcoin move. Your personal data is being bought and sold online right now. Emails, phone numbers, home addresses, even family connections, all floating across hundreds of data broker databases. And this is exactly where highly targeted scams, fishing attacks and identity theft begin. That's why I use incogni. Incogni acts as your personal privacy advocates.

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7:12MSTR. That's code MSTR for 60% off an annual plan at incogni.com slash MSTR. Multiple investors pointed out that you recently sold Bitcoin and you recently purchased back STRC. Are there any plans to buy back MSTR? I think we're open to buying back MSTR if it trades at a discount to NAB or if it's the right thing for the company to do. We evaluate all these programs week by week, day by day. Right now, STRC is trading at a discount to par. So it's a pretty obvious thing for us to do. And MSTR is not trading at a discount to NAB. So we're prepared to do it at some point if we needed to, if MSTR is trading at a very, very deep discount to NAB, then probably you would see us do something like that.

8:15But right now, it's not the highest priority of the company. The best thing we could do right now is fix the credit. If we fix the credit, the equity premium should expand, and that will be good for the equity. If we take the capital that we could use to fix the credit and start buying back the equity, that would be equity. That would be credit negative. And if it's credit negative and the credit business weekends, then even if you were trying to buy the equity in the open market, it would be weakening because the fundamental question is, is the credit business worth $100 billion or $1 trillion? If the original credit business, the answer is no, it's worth zero. But if there is a credit business, then there's just a debate over whether or not it's worth $50 billion or $100 billion or $250 billion or $1 trillion. And so the single most important thing for us to do is make the credit work. And right now, we're allocating our capital to doing that.

9:19OK, so fix the credit, fix the equity. This question is from you from Johannes Schmitt. CEO, Fong Lee, has cited JP Morgan as a model for how strategy should evolve for digital credit. Yet Bitcoin's entire philosophy was designed as a direct alternative to the centralized trust-based banking system that JP Morgan represents. Doesn't modeling strategies business, including STRC, after a centralized institution like JP Morgan contradict the decentralized principles that Bitcoin was built on. And how do you reconcile pursuing a JP Morgan style corporate structure while staying true to Bitcoin's founding philosophy? Yeah, let me address that. I do want to follow up in the previous question, because I think there is this misconceived notion that issuing our equity is dilutive to our shareholders. If we sell digital credit with STRC, and we issue equity to pay the dividend, it's highly accretive to our shareholders.

10:22If we issue equity that's greater than 1x, MNAV, and we're currently about 1.07 to buy Bitcoin, that's actually accretive to our shareholders, because it increases Bitcoin per share. If we issue equity to buy back STRC at a discount, at which we issued it. So if we issue STRC at $100, we issue equity above 1x, MNAV, and we buy STRC back at $95, that's also accretive to our shareholders. Nothing would make me happier than to rip the faces off of all the skeptics and the shorts and drive the equity to the moon.