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Michael Saylor’s ‘Indestructible Balance Sheet’ – He Says Bitcoin Is the Future (And You Should Care!)

BBG News

Well folks, here’s a juicy one for ya! Strategy, the big player, is going all-in on Bitcoin with a shiny new $1 billion preferred stock IPO. Yep, you heard that right. They’re doubling down on the world’s favorite digital coin. Someone’s feeling lucky.

Michael Saylor, the Executive Chairman (and self-proclaimed Bitcoin genius), graced CNBC’s Squawk Box to explain how they’re using high-yield instruments to flip good ol’ dollar capital into sweet, sweet BTC exposure. 🤑

“We are offering fixed U.S. dollar yield and we’re swapping it into BTC yield, which is what our equity investors want,” said Saylor. “The big breakthrough is that, in the preferred market, the capital never comes due. There’s no refinance risk. We’re basically offering a perpetual US dollar yield forever. And so by matching a very long duration instrument on the liability side with the long duration asset, we’re creating, in essence, an indestructible balance sheet.”

Strike and Stride: A Lesson in Making Money

Now, let’s talk numbers, shall we? Saylor dropped some knowledge on how their previous preferred stock offerings have been a *major* win. The first one, Strike, made a solid 29% gain when the rest of the market was busy declining by 6%. As if that wasn’t enough, their third issuance, Stride, delivered a 10% fixed yield and saw a 22% increase while other preferreds were in the red. I mean, c’mon. 🏆

He calls this a “very scalable, extremely low-risk way to generate leverage,” and judging by those numbers, you can’t really argue with him. It’s a win-win, people.

“It’s a win for the fixed income investors because they’re getting a yield 400 basis points more than typical preferred stocks or junk bonds. And it’s a big win for our equity investors because they want more Bitcoin,” Saylor said with a grin, probably imagining how his investors are all swimming in profits right now.

As for his long-term predictions? Saylor’s got the crystal ball out. He’s predicting Bitcoin will rise 29% a year for the next 21 years. By 2045, he says, Bitcoin could hit $13 million per coin. Go ahead, grab that calculator. 😏

Bitcoin’s Bright (and Increasingly Mainstream) Future

Things are looking pretty darn good for Bitcoin, folks. According to Saylor, the environment has never been more favorable for the digital coin. He pointed to regulatory progress, improvements in accounting standards (finally!), and a growing number of firms deciding they just can’t live without Bitcoin in their portfolios. Who would’ve thought?

Now, Saylor did have some thoughts on proof of reserves. He said his company’s Bitcoin stash is audited by KPMG, but he’s not too keen on publishing every wallet address. That’s some top-secret stuff, people! 🤐

And here’s the kicker: Bitcoin is no longer the wild west of digital currency. It’s becoming part of the mainstream financial landscape, with big institutional investors hopping on the Bitcoin train. From asset managers to ETFs, even publicly traded companies are getting in on the action. Looks like the cool kids are finally interested in the blockchain. 😎

For Saylor, these past six months have been nothing short of a turning point for Bitcoin, citing a wave of regulatory clarity and institutional support. Even the U.S. government now considers Bitcoin a digital commodity. Who’s laughing now?

All these developments signal one thing: Bitcoin is growing up, and it’s here to stay. Saylor’s not just talking the talk – he’s walking the walk, and he’s betting big on the future. Get ready, folks, Bitcoin is moving into the financial mainstream. 📈

“These developments mean Bitcoin is no longer on the fringe,” Saylor said. “It’s moving into the financial mainstream, and that’s why I’m so bullish.”

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2025-06-06 17:53

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