Transcription
It's March 18th, JLD here, and welcome to MSTR today. The show is going to be a little bit different at the start; we're just going to dive into the content because we have a lot of video clips to get to. Um, let's start with Michael Sailor's post: Strategy has acquired 130 Bitcoin for $10.7 million at $82,918.1 per Bitcoin and has achieved a Bitcoin yield of 6.9% year to date in 2025. As of 3/16/2025, we huddle $499,226 Bitcoin acquired for $33.1 billion at $66,360 per coin.
And now it's MSTR and Strike. So Ben Workman wanted to jump in here and say that MSTR sold 123,000 shares of Strike via the new ATM and used the proceeds to buy 130 Bitcoin. The preferred stock era has begun, and let me tell you, this is going to be a great era because now Michael Sailor and team are going to be able to tap the ATM of Strike to the tune of $21 billion, as volume allows, and immediately turn that into Bitcoin yield for Strategy and MSTR shareholders, which is amazing.
Chris wants us to know, um, or wants to give us a reminder that people are overestimating what Strategy will do in the short term and underestimating what Strategy will do in the long term. Recalibrate your expectations. Notes: When this thing does eventually reprice, it's going to be one for the ages. And then here's a graphic: MSTR expectation versus reality, and you have the progress over time. So in the short time, people are overestimating what it's going to do, and in the long term, they are underestimating what's going to happen. And then, of course, the reality is going to be where we end up—well repriced, well down the road.
Bitcoin Overflow has a little quote for us: "If you wait to buy Bitcoin, the price will run away from you exponentially, so you should just buy now." Time in the market beats timing the market, says every Bitcoin Ever, every bitcoiner ever—and of course, except when talking about MSTR. Sailor should be timing the market and nailing dips with clairvoyance. Now he's just kind of poking fun at, you know, basically everybody on Twitter that's just like, "How is Sailor always buying the top? He's buying the top forever." And again, it's just one of those realities that Sailor and Strategy have a plan; they're executing that plan.
Um, and then Matt does jump in here and say, "It also shows their ignorance around the mechanics of MSTR's capital raises." So just know that what may seem like the top now is not going to seem like the top in 5, 10 years from now. And I think that's a lot of what Bitcoin Overflow is trying to get through as well: Just have a strategy, execute now.
We're going to dive into a few video clips; we got some great ones here today. So, uh, let's dive into the first one from Michael Sailor himself. Uh, this is kind of a historic entry point because all of the risk has been stripped off the asset. Like, you pretty much know Wall Street's going to embrace it, the US government's going to embrace it, and banks in the US are going to embrace it, which means that all the other banks will embrace it. You already know all those things, and yet the market is really skittish based upon, uh, concerns about, uh, tariffs, you know, this, the disposition of the US economy, the interest rate forward graph. And so you see the interest rates have pulled in 30, 40, 50 basis points, and and we're in this, uh, in this, uh, macro risk-off zone. When that flips, I think Bitcoin will rip forward with a vengeance.
Now, the—you—you said Wall Street's going to it, and that is true, but still it's limited. Uh, I've been talking to these guys here; many of them are very interested in Bitcoin, but a lot of them have questions. When I walked around and say, "What do you want to hear from Michael Sailor?" they say, "Well, we're still concerned about suitability issues; we still have issues about recommending them to our clients." This is still a real concern. What do you—what do you say to those who are still concerned about suitability?
The only asset endorsed by a president of the United States in 50 years is Bitcoin. I mean, go—go back in the last 200 years in the history of the country, and I think if you go to the founding fathers, they wrote in the Constitution that money is silver and gold coin. And then at some point, there was a chicken in every pot, and maybe—maybe with the founding of Fannie Mae and Freddie Mac, we endorsed everybody to single-family home ownership. But in the 21st century, you have just one asset: Bitcoin, the president saying, "Don't sell your Bitcoin," saying more than that, saying the United States won't sell its Bitcoin. And so everything else you put your client in—if the—if the US government seized any other security that you sold to a client, if they seized any collectible, any art, any real estate, they would sell it. The only thing that the US government won't sell, if they are to seize it, is Bitcoin.
My view is, uh, the safest way to generate yield on Bitcoin is to contribute the Bitcoin to a public company. The company holds the Bitcoin, and the company issues equity or—or issues debt instruments collateralized by the Bitcoin. That's the right way. Risk: You haven't surrendered your Bitcoin to another entity; you have it right. And so our company last year generated about $13.5 billion of Bitcoin yield, you know, in my opinion, without any counterparty risk, right? Because—because we own the Bitcoin. And the way we did it is by selling bonds and selling equity at a premium, capturing the accretion. Um, last week we sold a $2 billion bond, and we generated a $1 billion Bitcoin yield. We did it in three days, and we did it by issuing a bond collateralized by Bitcoin that was backed by—you know, that was trading at a premium of 120% of the Bitcoin, and we bought the Bitcoin back, and we made a billion dollars. Called that BTC gain or BTC dollar gain.
Uh, and my general advice to everybody: If you have Bitcoin in cold storage and you wanted to generate a yield, if you actually put it in a public company, then the cold storage asset trades at a premium because of the volatility of the equity and the utility of the public security, then you sell the equity at the premium to capture the yield and monetize it. And that's happening now a lot; there's like Appo doing it; you'll see more companies do it. Uh, and do I consider other ideas? I do. But the other idea is, do I want to give my Bitcoin to FTX or Celsius or BlockFi? No, I don't want to, right? So my—like last month we did a—we sold a preferred stock; we sold $600 million of preferred stock; we pay a fat coupon, 8%, but you know, eight—but we're—we're loaning the money to the Bitcoin Network and yielding 60. We basically borrow at eight and we loan at 60. Like what we do is—my—my idea of a good idea is, I—I'll pay you 10%; I'll give the money to Bitcoin and get back 30 or get back 40. Now the catch is, there's no—there's nobody on the Bitcoin Network that's signing the loan agreement to pay me that, so I don't have a counterparty, but I just know I'm getting 30 to 60% interest. I would much rather pay and then get the interest, so we're reversing the transaction.
And we have a couple more epic video clips as soon as we get back from thanking our sponsor. So check it out. I know we're all looking to stack more Bitcoin and MSTR, and to do that, we need more fiat. So let's chat about our sponsor: ShipStation. We all know the market can seem pretty chaotic at times, but if you're in charge of order fulfillment for your business, you already understand chaos. While we might not be able to help see the chaos in the market, ShipStation is here to help when it comes to shipping and fulfillment. I've used ShipStation to easily automate shipping to customers around the globe. My favorite part about the platform: managing orders in one simple dashboard makes an otherwise massive task feel pretty darn simple. Plus, ShipStation not only integrates with the services and selling channels you already use, it's also the fastest, most affordable way to ship products to your customers. ShipStation hooks you up with discounts up to 88% off UPS, DHL Express, and USPS rates, and up to 90% off FedEx rates. Calm the chaos of order fulfillment with the shipping software that delivers. Switch to ShipStation today. Go to shipstation.com/mstr to sign up for your free trial or click the pinned comment below this video. That's shipstation.com/mstr. And thank you for supporting our sponsors that allow myself and my team to continue to produce these daily videos for you for free.
Now back to the show. As long as Bitcoin goes up, MicroStrategy very likely goes up a lot more. Um, MicroStrategy, around five years ago, transformed the company by using its balance sheet; they had a lot of cash on hand to buy Bitcoin. And so instead of the stock being valued on its actual software business, which had been languishing, it's valued as a holder of Bitcoin. But as Bitcoin has risen and MicroStrategy stock has gone up, it's created an opportunity for them to issue convertible bonds and debt to acquire more Bitcoin. What's been novel is that they've issued these debt securities for almost no interest cost—essentially zero-interest bonds. And so they're funding this without having to actually pay for the interest expense.
Now you might think that this is a little bit reckless, but it turns out it's—it's a very novel strategy because they have created a lot of network value. They're one of the largest holders of Bitcoin now, and ultimately they may become the second largest holder of Bitcoin after the US government. They're doing this with the ability to borrow at very low cost. You might wonder, "Why are bondholders buying these bonds?" They're offering, for the first time, the ability for someone to put a billion dollars worth in the bond world to own a bond that has exposure to Bitcoin. These have been incredibly high-performing bonds; they've been the best-performing bonds. So they've helped bond managers, uh, outperform by buying typical corporate bonds, but then with this upside in crypto. And so I think that this makes this work unless Bitcoin itself doesn't have a promising future. I—I think Michael Sailor has not only done something brilliant, but over time, when—when they do accumulate enough Bitcoin, they're actually going to be able to do quite a lot of novel things with it, whether it's lending Bitcoin or helping some financial system secure Bitcoin as sort of the anchor of that network. MicroStrategy is going to be one of the few companies that has a large holding of Bitcoin that you can actually tap. So it's a very—I—I—I kind of applaud the strategy. So I—I think that there is a lot of upside as long as Bitcoin goes up; MicroStrategy very likely goes up a lot more.
Are US dollars—I mean, US dollars—the government can just create new dollars and borrow and borrow, and it's like you never—it's—have it fixed. Like Bitcoin was the gold—Bitcoin is mathematical purity. There can never be another Bitcoin created. Bitcoin doesn't even have a creator that we know of. Bitcoin isn't run by some company; it's—it's just mathematically pure. And I believe nature over humans always.
Let's go on over to the screen share of my receipt for yesterday's purchase. I did a 734 share investment at $287; it cost me about $210. As I continue to stack $211 or $210 of MSTR every single trading day of 2025. Um, every Sunday I share with you my full portfolio, so definitely check that out. Please remember that this is not financial advice; nothing in this video is financial advice. It's just meant for your entertainment and enjoyment only. And you're the average of the five people you spend the most time with; you've been hanging out with myself, so thank you for that. And I love your likes; I love your comments. So please comment below where you're watching from; comment for support; let me know any questions or comments you have around Strategy, MSTR, Michael Sailor in general, Bitcoin, of course, and we'll definitely have a great conversation in there. And remember, as the great Michael Sailor is known to have said, "There is no second best." What's the second best? There is no second best.