Transcription
I think that you are going to want to watch this video. Today's video about Bitcoin, MicroStrategy, and Bitcoin adoption is going to be really, really interesting. There's a lot going on—huge, huge news. And yes, we're going to be talking about goats today.
So thanks for joining for today's video. There's a lot to cover here, so just to give you a brief overview of what exactly we're talking about, we're going to be discussing what I believe is a very, very large piece of significant news.
Okay, huge news. Facebook—yes, Facebook, that social media app everyone knows and loves or hates—is now proposing to push a significant portion of their balance sheet into Bitcoin. They have a $72 billion balance sheet of cash or cash equivalents, which would be $42,000 of capital for every single Bitcoin.
However, of course, when $1 enters the Bitcoin market, it doesn't go one-to-one; there's some sort of multiple towards the total value of all the Bitcoins in the world. So if we were to assume just a 10x multiple on that kind of capital, we'd be looking at $130,000, right?
Seventy-two billion times a 10x multiple is $720 billion. Add that to Bitcoin's market cap. What we're talking about here is one of the Magnificent Seven companies potentially putting a massive, massive balance sheet into Bitcoin.
We'd be looking at Bitcoin prices significantly higher from here if they were to do that—30%, 40%, 50% or more. A 10x multiple may even be conservative. So I'm going to talk about this today, what I think the odds of it happening are, and everything else.
We're also going to discuss another big piece of news, which is, in my opinion, very related and time-sensitive. There is a call to action to be done by January 20th—a very firm deadline.
What is this piece of news? Michael Saylor, the CEO or chairman of MicroStrategy, is about to hyperinflate MicroStrategy stock. He wants to add 10 billion new shares. Now, I know this is going to sound crazy, and in the video here, we're going to get to the math, and I'll get to it sooner than later.
I'm going to break down the math of how a $6,000 MicroStrategy share price is something to be comparable. I don't necessarily think that's going to happen in the near term, but I'm going to break through the math and how we specifically get to that exact dollar price target.
So without further ado, let's talk about that first big piece of news, which is Facebook's $72 billion cash or cash equivalents that they've announced. This is the letter, the Bitcoin treasury assessment letter that Facebook has put out there to shareholders.
I'm going to read through it really quick because I think it's important you hear what they're saying and why they're saying it. I know it may seem a bit boring, but we have to understand why companies think this way. If we better understand what the company is saying, the reason they're looking to do it, we'll better understand why other companies are going to follow suit.
So let's briefly go through this letter here from Facebook:
"Bitcoin treasury assessment supporting statement. As of September 30th, 2024, Meta has a quarter of a trillion dollars in total assets, $72 billion of which is in cash and cash equivalents, marketable securities, etc. Since cash is consistently being debased and bond yields are lower than the true inflation rate, 28% of Meta's total assets are consistently diminishing shareholder value by simply sitting on the balance sheet.
Meta should, and perhaps has, a fiduciary duty to consider replacing some or some percentage of those assets with assets that appreciate more than bonds, even if those assets are more volatile short-term. Maybe volatility should not be the only kind of risk we're assessing here for our shareholders of Facebook.
Maybe we should also be factoring in long-term duration, right? Long-term dilution, right? Volatility is a component of risk; it's not the only kind of risk. What they are saying is that maybe volatility should not be the only thing we're caring about.
It's one thing when this guy, this Bitcoin nerd on the interwebs, is saying volatility is not the most important thing. People laugh at me; people make fun of me in the comments. Okay, this is Facebook that's proposing this assessment to shareholders. I'm not making this up. I'm telling you, and I've been telling people for years now what these companies are going to start talking about. This is what they are saying.
Anyway, getting back to the letter here: Due to its verifiable fixed supply, Bitcoin is the most inflation-resistant store of value available. This is especially true compared to other liquid assets. As of December 20th, 2024, the price of Bitcoin increased 124% over the previous year, outperforming bonds by roughly 119% on average over the last five years. It's been 1,200% outperforming bonds by basically 1,200%.
Meta founder, CEO, and chairman Mark Zuckerberg has named his goats Bitcoin and Max. Yes, I told you we'd be getting to those Bitcoin goats. A lot of people don't know that, but it's actually quite funny. This little guy, this cute little guy right here, this is Bitcoin. Meet Bitcoin, the goat. Hello! And we have Max in the background there.
Believe it or not, for years now, Mark Zuckerberg has had one of his goats named after Bitcoin. So, you know, that's just a funny little aside here. Obviously, the Facebook letter being sent to shareholders is including that, just pointing out that, hey, what they're trying to say is they're trying to say the Zuck owns Bitcoin without saying the Zuck owns Bitcoin.
That's what they're trying to say when it comes to this. So back to the letter: He has the goat named Bitcoin, and Meta director Mark Andreessen has praised Bitcoin and is also a director at Coinbase. That is very important.
Do Meta shareholders not deserve the same kind of responsible asset allocation for the company that the directors and executives likely implement for themselves? The second largest institutional shareholder? Guess what? BlackRock. That's right, BlackRock is everywhere.
The second largest institutional holder of Facebook shares, which again will be very important, we'll be talking about when we get back to the whole point that they're going to vote. BlackRock is becoming more commonplace in advising a 2% Bitcoin allocation.
BlackRock is the world's largest asset manager. They are recommending a 2% Bitcoin allocation to their clients, saying that is reasonable. The reasoning behind that holds true for Facebook's assets as well. Corporate and institutional Bitcoin adoption is becoming more commonplace and proving to be an effective strategy.
In Facebook's words, for example, MicroStrategy stock— for years we've been saying everyone's going to copy Mr. Crazy Michael. When Amazon had a very similar letter like this a couple of months ago, who did they also mention explicitly by name? That crazy guy! That's right.
For example, MicroStrategy stock has outperformed Facebook stock by 2.1% over the last five years. More public companies are adding Bitcoin to their treasuries every week. BlackRock's Bitcoin ETF is the fastest-growing ETF in history, and the U.S. federal government and some state governments may form a Bitcoin strategic reserve in 2025.
We are literally a week and a half or so away from Mr. Orange Man, whether you like him or not, taking power. We very well might have that. It may just not be at some point this year; it could be in a matter of weeks, not months, that we could begin to see that happen.
Meta has always been a forward-thinking, innovative company—not a company that follows technological trends, but one that sets them. The company has an opportunity to honor that tradition by being a leader in corporate Bitcoin adoption and corporate treasury management for the 21st century.
At minimum, Meta should at least evaluate the benefits of this proposition, even just a few percent. Get off zero! What have we been saying for years? Get off zero! BlackRock is saying 2%. Facebook is saying just a couple percent. They are proposing to their shareholders, "Maybe we should get off zero, guys. You know, we probably should get some just in case this catches on."
To quote how FNY so resolved, shareholders request that the board conduct an assessment to determine if adding Bitcoin to the company's treasury is in the best interest of shareholders.
Now, why do we read through this letter? Because I want to make sure we go through everything and really hammer these points home. A lot was covered there, a lot was said.
To step back, let's talk about who they mentioned by name: MicroStrategy. Bitcoin is the focus; you should focus on Bitcoin. However, the story of this period in Bitcoin's history is MicroStrategy.
Let's talk about the red elephant in the room: Saylor Coin. MicroStrategy has a war chest of 447,400 Bitcoin from SaylorCharts.com. This is their history of their Bitcoin treasury since Q3 of 2020. This was their "get off zero" moment where they allocated a quarter of a billion dollars to Bitcoin in late 2020 in response to the rampant inflation that the government created—the rampant money printing from the lockdowns.
Of course, they've had a pretty good four years, especially the last four months. This is the war chest that they have accumulated in that time—nearly half a million Bitcoin.
Now, let's zoom out here and emphasize something really, really important when it comes to having a point of reference for the future price of MicroStrategy shares. If MicroStrategy were to increase their total stack of coins by 20%, that would be 536,000 Bitcoin.
If the price were to increase by 50%, which is very, very attainable, if those two things were to happen, I think both of those are very reasonable and conservative. That would be $141,000 for Bitcoin. That would be $75.7 billion worth of Bitcoin on MicroStrategy's treasury in their massive war chest.
Why is that number critical? $72 billion for Facebook. MicroStrategy is no longer a little side story like it has been for the last four years that traditional Wall Street people have been able to ignore.
We are looking at a company that is potentially going to have a larger reserve of, you know, not cash and cash equivalents, but a liquid war chest larger than Facebook. It's not larger yet—making that very clear—but again, a 20% increase in their coins and a 50% increase in the price, we are now talking about a company that has a balance sheet literally larger than the Magnificent Seven companies.
Other companies like Microsoft, Amazon, and Tesla have significant balance sheets too, but they're not actually as large as you might think. Google has a massive war chest, but the point is we are at this point where we are on the cusp of this happening.
This is dawning on everyone: oh my goodness, MicroStrategy has a balance sheet larger than these other big companies, and that balance sheet is growing. MicroStrategy's balance sheet is in Bitcoin; it's growing every single year.
Meta's balance sheet, right, is not growing, as the shareholders themselves are saying. This is the whole basis of their prompt: hey, our balance sheet is bigger but dwindling. This other balance sheet, even though it's smaller, is outperforming. Maybe we should adopt the same because pretty soon they might eclipse us.
And guess what? When they eclipse us, it's too late. Right now, if Facebook, if Mark Zuckerberg and the shareholders of Facebook right now decided to go all in, they would probably be able to catch up with Michael Saylor. However, they are probably not going to go all in in time for that to happen.
It seems improbable, in my opinion, that it's going to happen. So it's all effectively already too late for them to beat Michael Saylor. It's too late, even though a billion people use Facebook. It's too late for them to catch up to the war chest that Michael has.
I'm hammering this point home because this is extremely significant. This is a really, really big deal. Companies are going to transition from, "Oh wow, I can't believe that Michael Saylor is borrowing money to buy more Bitcoin," you know, it's the Michael Saylor quote, right?
It's like, "Take all your money, buy Bitcoin. Take all your time, figure out which and borrow to buy more Bitcoin. Take all your time, figure out which you sell to buy Bitcoin. If you absolutely love the thing, go mortgage your house and buy Bitcoin." That's Michael Saylor's quote, right?
He's been laughed at explicitly by the traditional finance world for years, and we're getting to the point where instead of this being a cute little side story, it is in their fiduciary duties to take a second look and realize, "Oh crap, just in case this might be catching on."
We are already too late to the boat. Now, is this going to happen? Is this letter going to go through? Are the shareholders going to successfully have the board of Facebook conduct an assessment to determine if this is actually going to happen?
Many people reasonably are saying no. They're saying, "Oh, this is just a bunch of noise. This isn't important, blah blah blah. It's not going to happen." But you know, chalk it up for engagement, blah blah blah.
Some people are going to be negative and say this is a big nothing burger, and I think in large part, tangibly, they're right. But I think intangibly, there is a non-zero chance this happens. Even if it doesn't happen, we will get to more reasons and thoughts why I still think this matters, even if it fails.
I do believe this effort will fail. I do believe this letter will fall on deaf ears and it will not go through. Here are two reasons why.
The first reason is that Mark Zuckerberg is not Michael Saylor. What do I mean by that? Mark Zuckerberg is much more in line with a constitutional monarchy compared to an absolute monarchy.
What makes Michael Saylor unique in Bitcoin's history here is that he was in the right place at the right time with the right experience and the right kind of power in his control. He found Bitcoin at the ideal time, which was immediately after the lockdowns.
His company was dying; he was desperate. He has explained this many, many times. The company was going to die, so he was backed into a corner where he had to do something bold and, you know, crazy to have it survive.
That is another unique component. But the other unique component too that maybe we forget is that Michael actually had the control to do it. If Michael had less control of his company, he would not have been able to be as overt and overpowering to get it done.
You can think of Michael Saylor as the dictator, so to speak, of the corporate entity that was MicroStrategy. So far, he's been a benevolent dictator. But my point here is that Mark Zuckerberg, even if he names his little cute goat Bitcoin and even if he's into Bitcoin, he can't do what Saylor is able to do.
Why? Because Saylor had at the time overwhelming control of his company because the company was much smaller. He had overwhelming control of the voting shares. Mark Zuckerberg does not share these qualities.
So you may have the quote-unquote god king, the quote-unquote face and name of Facebook saying he's into Bitcoin. Likewise, you can have Saylor saying the same thing, but the one that is bound by the voters, by the shareholders, you know, Mark Zuckerberg just does not have as much power as Michael Saylor has.
So that is the first reason: Mark Zuckerberg just doesn't have the same power that Michael does. Here's the second reason. Amazon had a very similar letter to this, right? As many of you may remember, a few months ago, Amazon—another Magnificent Seven company—had a very similar letter outlining the same problem with many of the same reasonings, again mentioning MicroStrategy by name.
They put the vote to the shareholders, and the shareholders came back and said no. Or Microsoft. Microsoft, you know, not Amazon. I'm talking about Microsoft here. This happened with Microsoft, and the vote failed—barely half a percent.
The Microsoft shareholders saw Michael Saylor's presentation, the three-minute presentation, and they said, "Yeah, no." They said, "Let's vote on it." Okay, we'll vote on it, and then they said, "Yeah, definitely not."
So those are my two reasons why I do believe this letter will fall on deaf ears. Mark Zuckerberg does not have the absolute control Michael Saylor had at the time, and the similar example of Microsoft recently fell completely on deaf ears.
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Now, why does this still matter? Why does this letter still matter? Why does this dynamic still matter? Jeff Bezos—and this is where I was getting my Microsoft and Amazon mixed up—Jeff Bezos and Mark Zuckerberg are both CEOs, or both, you know, Bezos isn't CEO anymore, but they're both figureheads of Magnificent Seven companies.
The reason why this matters, the reason why this letter to Meta, Facebook, matters, the reason why the Microsoft letter matters, even though they are almost certain to fail—Microsoft already failed, Facebook is almost certainly going to fail—the reason why they still matter is because I personally believe both Jeff Bezos and Mark Zuckerberg are beginning to buy Bitcoin at scale because I think they understand what's going on.
You don't have a guy named freaking goat Bitcoin unless there's something going on here. It's like, you know, it's just—I think it's speculation, but I think we can confidently say it's a decent probability they've been buying.
Regarding Jeff Bezos, he has met privately with Michael Saylor at least twice. I think that's a very interesting point, and that has been over a long period of time, not just recently.
Then Mark Zuckerberg, like I said, has a goat named Bitcoin, which is the most adorable implicit support of Bitcoin. I mean, again, here's Bitcoin the goat. I mean, it's just hilarious.
But there's the other thing too, which is the Libra token since 2019. So real quick, Libra was transitioned over to DM, right? Mark Zuckerberg has been trying to create different kinds of payment systems and stable coins and blockchain kind of stuff.
He's been trying to do this for well over half a decade now. My point here is that Mark Zuckerberg has already, for years, been trying to think of what could possibly be solutions to this global monetary problem of meeting a digitally native kind of money inherent to the internet.
That's why I personally believe that Mark Zuckerberg and Jeff Bezos have a decent probability of actually having bought Bitcoin. There are many other smaller things too, which I've kind of picked up on in various interviews I've watched with both of them, but it's too much nuance to get into here.
If Amazon, or again Microsoft, if Microsoft previously and now Meta are asking this question, proposing these letters, we have to actually ask ourselves what's going to happen here. Even if the answer is no, will Apple or Amazon, or Amazon ask the question next?
Tim Cook, we do know, has Bitcoin. Tim Cook, who is the CEO of Apple, got my iPhone right here. The CEO of Apple himself, a couple of years ago, said that he has bought and held Bitcoin.
So my point is this: we have all these Magnificent Seven companies. We have Facebook, which has Mr. Bitcoin goat CEO guy. We have Microsoft, which of course proposed the vote and denied the vote. We have Tim Cook, who we know has Bitcoin.
We also have Amazon with the main figurehead, Jeff Bezos, likely owning Bitcoin or at least being Bitcoin curious, having met with Michael Saylor multiple times. My honest take here, my genuine opinion, what I think's going on: I think they're passing.
I think they know this isn't going to pass. The Microsoft vote barely got half a percent of shareholders voting in support of it. They know it's not going to pass.
So again, to those watching that are going to be angry in the comment section below, saying that, "Oh, this is just a bunch of noise because everyone knows it's not going to pass." Okay, look beyond the surface. What's actually going on here?
I think what's going on is they're covering their butts. I think that's what they're doing. I genuinely, genuinely think that. What do I mean by that?
In the next couple of years, when MicroStrategy stock again rips the faces off of the holders of these Magnificent Seven companies, I think they want to be able to say, "We put it to a vote to you shareholders five years ago, and you didn't do it."
I think what they want is to prevent a few years from now people going to Mark Zuckerberg and saying, "Mark Zuckerberg, you're an idiot. Why didn't Facebook buy Bitcoin or you propose it or blah blah blah?" He can put his hands up and say, "We put it to a vote to the shareholders; they voted no, and that's it."
Same thing with Microsoft. I think the people that put forward that effort to get the shareholders of Microsoft to vote on it, I think they kind of thought the same thing. They knew it wasn't going to pass, but they're doing it for a very explicit reason.
In a few years, when Microsoft still hasn't bought Bitcoin and now MicroStrategy has a liquid war chest of assets, cash, cash equivalents, whatever Bitcoin, being larger than even Microsoft, I think these CEOs and the people putting forward these kinds of efforts are trying to cover their reputation.
They don't want to look like an idiot in the next coming years because they already kind of have egg on their face. MicroStrategy, a tiny little software company that isn't even really barely profitable, has outperformed their share price.
They're trying to cover their butts. They're trying to cover their reputation, making sure that they don't look like idiots in the future. Maybe they will look like idiots, but if they look like idiots, then the shareholders will also look like idiots as well.
I think this is all just a way to say they are investing today to protect their reputation tomorrow. Bezos and Zuckerberg, I think, have a real feeling of what's coming, and I think that they're going to be excited internally, privately, about giving shareholders the options to deny themselves so that those shareholders can't get mad at these mega tech CEOs when inevitably their share price fails to keep up with MicroStrategy.
Just because the MicroStrategy balance sheet is just unbeatable, it is literally larger than many major nation-states in the future. I think that is what's going on here, and I think if you zoom out and view it that way, instead of being negative and saying, "Oh, this is just engagement farming; it's never going to happen," I think there's a pretty strong case that that's what's happening.
So the point is nobody can catch up to MicroStrategy at this point. I already think it is too late. Again, with just a 20% increase in the coins and a 50% increase in the Bitcoin price, even if Meta went all in today, they would still barely be able to keep up.
I doubt that because, you know, if you apply $72 billion, you're going to force the market price up; you're going to bid yourself out of the market. So even if they went all in right now, I doubt they'd be able to do it.
Even if MicroStrategy doesn't increase their balance sheet, I just don't think it's possible. The brilliance, the genius of Michael Saylor four years ago was that he saw it four years earlier than everyone else.
Michael has described it many times himself: he was shocked. He was shocked that he was doing this. Nobody else was copying; nobody else was getting off zero. The whole, like, all I am asking you to do, all the Bitcoiners are begging people to do, is get off zero.
Getting off zero and waiting over time is so much more effective than going all in at some random point. Michael Saylor, he didn't go all in at first; they got off zero and they doubled down over time.
As the Bitcoin continued to grow, even despite the bear market in 2022, they've done nothing except win, win, and win. The whole get off zero mantra, you know, it's like Saylor had the guts and the need to jump in four years earlier than everyone else in getting off zero.
Now, I think he is unstoppable. I think there's well over a 90% chance, in fact maybe even over a 95% chance, that just nobody can catch up. I think this is really important because countries will take note.
In the same way, the other major companies in the world today—Microsoft and now Facebook—are taking note explicitly of what MicroStrategy has been able to do. If you were a country, you're going to take note from the corporations.
If you start to see other nation-states start buying and having their MicroStrategy moment, having them get off zero, you're going to realize, "As a country, we can't afford to wait four years. We can't afford to wait one more election cycle."
All these other companies, the Magnificent freaking Seven, the largest tech monopolies in the world, even they are beginning to reach the point where they're going to begin rapidly falling behind in their balance sheet. They've already fallen behind in share price.
They're going to start beginning to fall behind in balance. Pretty soon, we will know with 99% certainty that those companies will never have the largest balance sheet in the world. Apple will never have the largest balance sheet.
I think countries are going to take note of that and learn that lesson. If you're in charge of a country and you start to see this nation-state game unfold, you're going to realize we can't afford to wait four years like Amazon or Facebook or Microsoft or other countries did.
To quote Michael Saylor, "The first country to print money to buy Bitcoin wins." Now, maybe not necessarily the first; the first country that prints to buy Bitcoin is a small one. If it's the second one, it's way, way larger; maybe that's the one that's the real winner.
But the point is this is like a game of musical chairs. I call Bitcoin a game of musical chairs all the time. It's a musical chairs game to exit fiat and enter Bitcoin. You don't want to be first because you might look dumb before the music stops.
It's not a good idea, but you definitely don't want to be last. As soon as the music stops, the time is now to act, and I think at some point, countries are going to realize this.
Right now, effectively, MicroStrategy is basically a country on its own already. I mean, it literally has a larger market cap, even today, roughly $80 billion. It literally has a larger market cap than El Salvador's GDP, which is roughly $30 billion.
And it has 75 times the Bitcoin. Yes, El Salvador is a big deal because they're a nation-state buying Bitcoin, but come on, let's be real here. Michael Saylor, MicroStrategy has 75 times more Bitcoin than El Salvador does.
Michael Saylor is basically a president, economically speaking. He doesn't control the military, but in terms of economy, in terms of economic purchasing power, if he's not now, pretty soon, MicroStrategy is basically going to be its own country.
Saylor's new effort for 10 billion shares—this essentially proverbial, you know, joking term of hyperinflation—he's basically hyperinflating his shares. He's doubling down again.
This is a really exciting time if you hold MicroStrategy shares because you can vote. Right now, it's not essential for you to vote. You don't have to vote; you don't have to make your voice heard.
However, this is your chance to say, "I was there." This is the second big piece of news I promised you that we were going to get to. It comes down to this: now you know this voting share.
In the same way that Facebook shareholders are probably soon enough going to be voting if their company should go the direction of Bitcoin or not, in the same way Microsoft failed to do that—only half, one in 200 of their shareholders actually supported that idea.
If you're a MicroStrategy shareholder, you have the ability to make your voice heard right now. Now, obviously, unlike Facebook, unlike Microsoft, MicroStrategy is probably going to approve more Bitcoin because that's their whole goal at this point.
So, you know, it's almost certain that it's going to go through. You know, don't feel like you have to vote, but this is your chance.
Now, there is a very firm deadline for voting by January 20th of 2025. So if you have MicroStrategy shares in your brokerage account, whatever it is, you should be getting an email or a message from your brokerage that you have the ability to vote. They should be able to instruct you from that.
Now again, the summarization of this is MicroStrategy is a proof-of-stake system. This is literally what that means. What is proof of stake? Proof of stake means you get control over the currency units of that network as a function of owning those currency units in the first place.
In the United States government, it's a proof-of-stake system. You get the ability to control the supply, the monetary supply of U.S. dollars, by owning U.S. dollars and owning shares of the Federal Reserve.
With Facebook or with Microsoft or with MicroStrategy or Amazon or any other security on the planet, right? Same thing. It's a proof-of-stake system. The more shares you own in that system, the more control you have.
Again, of the Michael Saylor example I was giving before, he had total control, majority control of his voting shares—a proof-of-stake system. Back in 2020, he leveraged his proof-of-stake fiat power to begin to transition his company from a proof-of-stake model to backing that proof-of-stake token, MicroStrategy shares, with the proof-of-work token, which is Bitcoin.
So MicroStrategy is a proof-of-stake system, and you have the opportunity right now to vote in that system and make your voice heard and say, "I believe this proof-of-stake system is good for the world. I believe this proof-of-stake system is accelerating the world's best and apex proof-of-work system, which is Bitcoin."
No proof-of-stake system can become good money. MicroStrategy will never become global money; it never will do that. But this company, I believe, is a champion for good, and I do believe that Michael Saylor, indirectly, is going to accelerate Bitcoin adoption by years and indirectly, you know, save potentially millions of lives from avoiding inefficiency in the future.
So, you know, again, I'm not a fan of proof-of-stake systems when it comes to global money, but in this case, if you are a MicroStrategy shareholder, this is your chance to do the inverse of what those Microsoft and those Facebook voters were doing and say, "I was there."
In the same way that Mark Zuckerberg and Jeff Bezos, you know, all those other CEOs, I think, are trying to cover their butts with, you know, not making themselves look like idiots, but putting up a mirror and showing it to their shareholders, you have the opportunity to say, "I agree with Michael Saylor. I put my vote where my, you know, I'm putting my money where my mouth is. Yes, Michael Saylor, add those extra 10 billion shares."
Right now, they don't even have 1 billion shares—roughly a third of a billion shares. So this is a massive increase in shares, printing more money to buy Bitcoin. This is what Michael Saylor is doing. His political currency is actually a corporate currency, which is MicroStrategy shares.
He wants to print more of these shares and acquire more Bitcoin, add those Bitcoins to his balance sheet, and have a larger and larger monopoly.
Now, really quickly, you know, as a side note, speaking as that kind of "I was there" moment, that's what this voting share thing is. Right? Basically, this is your "I was there" kind of moment.
We've been talking about Michael Saylor and all this and how you have the opportunity five years from now to look back and say, "I was there. I voted for that 10 billion share increase. I pressed that button. I voted for an increase in the shares."
In the same way, you have the opportunity to say, "I was there for that." You also have a really cool opportunity coming up here this June when it comes to Prague.
There's an awesome event coming up—the Prague Bitcoin Conference in June 2024. Along with that, I am hosting a side event here. I think, you know, maybe you should consider joining. Here is some information about the Prague event.
Again, this isn't for everyone; you don't have to do this. But for those of you that want the bragging rights in two to five years to say, "I was there at that event. I got to shake Michael Saylor's hand. I got to hang out with all those awesome Bitcoiners back in the day before Bitcoin was a million dollars."
If you want the bragging rights to be able to say that, there's the awesome conference, and then I'm going to be hosting a Bitcoin retreat immediately surrounding the conference.
It's a different kind of venue. This is a much more intimate kind of event. You're going to be able to explore Prague with fellow Bitcoiners. You're going to meet some of the special guests and some of the speakers from the event.
Let me put it this way: I want to have dinner with the same people you want to have dinner with. Right? So this is the whole idea. We're going to have a beautiful three-story terrace. We're going to have beautiful views of downtown Prague, Old Town Prague.
We're going to be able to have a private chef to share that kind of time with us. So, you know, there's no promises; there's no guarantees with who's going to show up. But there are going to be a lot of excellent speakers at Prague, and we're going to do everything in our power to have those speakers come and join us for dinner.
So all I have to say is if you want to join an intimate group of roughly 10 to 15 people, have your logistics covered. If you, you know, I would recommend you get VIP access too, where you'd be able to meet Michael Saylor, Adam Back, Jack Mers, and dozens of other speakers.
If you want to be able to have that, I highly encourage you to consider reaching out to me. Reach out and express your interest as soon as possible. Like I said, this is designed to be an intimate event.
Four people have already committed to this event. So, you know, again, you don't have to do this; you can procrastinate this if you would like to. But if you have any interest in doing this and you're serious about that, you should text me as soon as possible because four people have already confirmed for this.
So there's some information on roughly what it's going to cost you— a few hundred dollars a day. But again, this is a luxury experience. We're going to have a private chef, incredible, pristine views of the city, relaxed socialization.
This is Bitcoin Prague, plus a whole extra level on steroids. This is first come, first serve. The first people that sign up are going to be the people that are going. Like I said, limited spots; a few of the spots are already gone.
This is your chance to have an "I was there" moment. This is your chance to be able to say, "I was here. I voted for that MicroStrategy 10 billion share increase. I got to go to Prague. I got to meet X, Y, and Z person. I got to have dinner with that person or whatever, and I made a bunch of new friends, and I got to explore a beautiful historical city, one of the most beautiful cities in all of Europe, with a bunch of new friends."
So that's all I'll say about that. Let's get back to the meat of the content and specifically price predictions for MicroStrategy—some comparisons here.
Okay, let's get back to this Facebook market capitalization. What is the total value of Facebook? Okay, Meta: $1.6 trillion. Now, I want to make it very clear there are many factors to evaluating what a stock is worth, obviously.
However, if we're strictly evaluating it based upon the balance sheet in question, or let's say the assets in question, let's only compare on that. Obviously, the business of Facebook is way better than the MicroStrategy business.
Obviously, everybody uses Facebook, and MicroStrategy, you know, the software company just isn't as big or profitable. However, MicroStrategy has a rapidly growing business of selling Bitcoin securities and bonds, and that whole business model is not yet factored in.
So again, this is oversimplified. However, let's put it in context. If MicroStrategy had the same market cap as Facebook of $1.6 trillion, that would be $644 per share.
Again, all it takes for MicroStrategy's balance sheet to supersede Facebook's is a 20% increase in the Bitcoin stack and a 50% increase in price. So we are basically already there, getting pretty close to comparability.
The only difference is that traditional investors do not yet view Bitcoin as a cash equivalent. They view Bitcoin as a volatile, scary thing. They don't yet view it as how it was described in this letter from Facebook, or from the shareholders, where they're less focused on the volatility; they're more focused on the long-term purchasing power.
If Bitcoin had $72 billion entering it at a 10x multiple, we'd be looking at over $130,000 per Bitcoin. So again, I'll make it very clear: these are not specific predictions. I'm saying X is going to happen. I want to make it very clear I'm saying just for a point of reference, we got to get our order of magnitudes right.
This is the kind of thing I'm talking about. These stocks, Facebook and all these stocks, are so overvalued. If MicroStrategy just captures a small portion of that massive premium attributed to it, it's going to be worth way, way more.
So it is cool and awesome to own MicroStrategy shares, and I think it's even more awesome to own those shares and vote. Right? To go vote. In the same way you vote for the president of a country or for your governor, this is your chance to vote for the decision of literally your money.
This is so awesome that you get to vote in this proof-of-stake system. That is, I think, doing good things in the world. However, remember, remember, remember: focus on owning, not just voting in a proof-of-stake system, but owning your portion of a proof-of-work system.
All of the proof-of-stake systems—MicroStrategy, Facebook, Microsoft, Amazon, all the proof-of-stake systems, all the corporations, and all the countries are going to need to back their proof-of-stake with proof-of-work.
So remember, while you might have a significant allocation of MicroStrategy, I would strongly encourage you, if you have not yet acquired Bitcoin, to strongly encourage you to do so. If you have not yet taken self-custody of your Bitcoin, I strongly encourage you to do so.
If you still have Bitcoin on Coinbase or Kraken or Strike or whatever exchange you have, you own a proof-of-stake claim to the Bitcoin that company owns. If you own MicroStrategy shares, you don't own that proof-of-work token of Bitcoin; you own a proof-of-stake claim to the Bitcoin they have.
So I must emphasize this: I am a self-custody maxi. I own MicroStrategy shares; I will be voting as I'm describing. However, the vast majority of my focus, the vast majority of my time, and the vast majority of my strong encouragements to you is to get some Bitcoin and take self-custody.
I cannot emphasize it enough. You do not get the same benefits with the proof-of-stake system as you get with a proof-of-work system. MicroStrategy is this chapter in Bitcoin's history; however, Bitcoin is the whole story.
If you miss the forest for the trees and you are so focused on only MicroStrategy and only acquiring MicroStrategy shares and you are negligent in acquiring Bitcoin and taking self-custody of your Bitcoin, you're missing the point.
It's a matter of time until that starts to burn you. I don't think it's going to start to burn you for some time; however, you cannot overlook it. Every company and country is going to be chasing after this precious, precious Bitcoin.
That is why Michael Saylor is so overt in trying to get as many coins as he can, and you need to have that same kind of zeal. There is a reason why Michael is encouraging you to buy Bitcoin and not to buy his own stock.
Bitcoin's the whole story; MicroStrategy is just a chapter. So do not worry; there's no need to panic. However, I do have an urgent message.
My urgent message is you need to take self-custody. I know what's going on. A lot of you have been putting this off; you've been procrastinating it. I get it—life's busy. People have health issues; people move; people have job career changes.
But I'm telling you, if you're buying Bitcoin, this is the time to take action. This is not the time to procrastinate anymore. You're losing that luxury. You're losing the luxury where you're able to procrastinate, and pretty soon, you're going to lose the luxury of not having to panic because pretty soon, you're going to have to panic to do what needs to be done.
My urgent message is to take self-custody. Minimize your tax risks. You have capital gains tax risks; you have all kinds of other tax risks. You also have the estate tax, which is up to 40% of your assets.
We do not want your kids or your grandkids giving up 40% of what you worked so hard to earn to the state. It is super easy to avoid these taxes; it's just people don't know what they don't know, and they don't take the minimal steps to avoid these kinds of taxes.
Please minimize your tax risk as soon as possible and reduce your litigation and loss risks. Avoid it as soon as possible.
Now, I've been very overt with talking this point through, hammering it again and again and again in recent weeks. I will not be hammering it this hard forever. At some point, it will be too late.
If you are sick and tired of me in these videos telling you about the need to consider upgrading to multisig, if you are sick and tired of me hammering it into your head, into your little brain, all of our little brains, including mine, if you're sick and tired of me strongly encouraging you to take this stuff seriously, to reach out, to have a conversation, and take tangible, practical steps one baby step at a time, if you're sick and tired of me hitting you over the head with this, there is a reason why.
In the same way that these companies are trying to cover their butts to not look like idiots in a few years, guess what? What I'm doing, I'm doing the exact same thing.
There are 40,000 people that follow me between Twitter and YouTube here. I believe at least 10,000 people that follow me are going to lose a double-digit percentage of their Bitcoin stack. Thousands of people that follow me are going to have their Bitcoin stolen.
Thousands of people that follow me are going to face a 20% to 40% tax bill on their Bitcoin that they could have easily avoided. Thousands of people that follow me are going to have their Bitcoin stolen from them or are going to make self-custody errors.
There are so many ways in which people can lose Bitcoin. I'm desperately encouraging you to take action now, not because it's not for you; it's for me.
In the same way that this letter actually isn't for the shareholders because, you know, like they know 99.5% of people aren't going to pass this. In the same way that 99.5% of the Microsoft shareholders shot down the proposal, I know the same thing's happening here.
99.5% of you aren't going to consider an irrevocable trust. You aren't going to consider stepping up your taxable cost bases for your Bitcoin. You aren't going to consider putting Bitcoin in a tax-advantaged account where your Bitcoin can grow tax-free despite it being fully self-custodied.
Most of you aren't going to consider escrow-compatible multisig for the sake of borrowing fiat against Bitcoin, having insurance with it. Most of you are going to completely ignore me. I can feel it in real time that my watch time is dropping on this video.
You know, like you all are clicking away. I get it; I'm okay with that. I see your negative comments. I know that you think I'm being too heavy-handed with it. I know that 99.5% of you are going to ignore me, but I'm not doing it for you.
I'm doing it for me because I'm trying to cover my butt so that in five years, when none of the other Bitcoin content people hammer this stuff nearly as hard as I did, when you're going to complain, you'll complain to them; you won't complain to me.
Okay, that's what I'm saying here. So do not worry; I won't be this overt with the self-custody message because at some point, it will be too late for you to actually do anything.
So my point is, if you're going to do this on your own, the learning curve is yours. More importantly, it might cost you a decade of capital. I see this very often. People say, "I'm going to learn on my own." That's great; I applaud you, I really do.
But I'm telling you, it's going to take you years to become a master. You're going to have to continue learning forever to remain a master. In the process, if you make a mistake and you lose a third of your Bitcoin, that's a decade of savings you just lost.
You can do what you want; I'm just saying I want you to do what's cheapest for you. I really think that hiring a team of experts—my team at the Bitcoin Advisor has 40 members. We have a cumulative experience of 300 years. We have clients in over 20 different countries, and we oversee over $1 billion of Bitcoin.
We are not perfect; however, we have every single incentive to pass on every single iota of information and alpha we have to you. You can learn everything you need to know on your own. There's so much out there for free. I'm pushing a lot of free content out there too in these forms of videos, doing everything I can to share free content.
However, you're going to learn faster if every single year your team that's on your side is gaining 40 years of experience. You can't compete with us. And guess what? The bad guys coming after you also can't compete with us.
So my point is the reason I'm being heavy-handed with this is because this is the time; this is the moment. If you're going to start learning right now on your own, you have years. If you're going to hire me, hire our team to help you, your learning curve is going to be months, and you're going to prevent the big, expensive mistakes along the way.
We have months left until mega euphoria. You don't want to start your learning journey in six months when this thing is going crazy. If you're only starting to ask, "How do I minimize my tax bill next year?" when you're a week away from selling at the market top, it's too late.
You've already missed it. You're going to be paying a bigger tax bill than what you could have already if you had just started planning three months earlier. In six months, we're going to see a lot more scammers steal a lot more Bitcoin.
If you're only asking the question once Bitcoin has hit $150,000 or $200,000 or more, it's too late at that point. So my mega, mega, mega encouragement is that right now is the best time to prepare.
If you need help taking self-custody and getting your Bitcoin off exchanges, if you need help with your Bitcoin tax planning, if you need help with your Bitcoin inheritance planning to your wife or your kids, if you need help with the Bitcoin OTC desk—meaning if you're buying more than $50,000 worth of Bitcoin at once—if you need help having escrow compatibility with your Bitcoin, if you need help with that, right?
If you are trying to make Bitcoin transactions with it, if you're trying to make real estate transactions, if you're trying to do insurance on your Bitcoin or borrow fiat against your Bitcoin, you need the escrow compatibility if you're wanting to borrow U.S. dollars against your Bitcoin or you're just looking to borrow more money in general for Bitcoin.
If you have those kinds of questions, if you have a small business or a church where you need a Bitcoin treasury, if you're seeking a multi-jurisdiction, multi-state, or if you're just looking to have somebody to chat with when it comes to guessing what the market cycle's going to do, guessing when the tops and bottoms are, right?
You know, no trading, but long-term general health of the market. If any of these things, and likely most of these things, if not all of them, right now is the time to prepare.
All those things, you know how to reach me. I talk about it in every single video; I plaster it everywhere. Give me a text; send me an email. My email address is in the information in the description below.
If you're going to email me or text me, just send your name, your email, ask a question, let me know your story, let me know which of these in particular and specifically you need help with, and I'll be more than happy to have the conversation.
Or you can just book a call directly; the link is in the description below. All the information, you know, again, I'm being exceedingly heavy-handed here, but that's only because there's still actually time for you to make significant progress.
In a few months, I'll be a little less heavy-handed with this because at that point, it'll be too late for you to actually do anything. So all I'd like to say is that in the same way Zuckerberg and Bezos are popping the Bitcoin question to the shareholders, in the same way, they are doing everything in their ability to get the subtle message out there in every conceivable way possible that, "Hey, hey, hey, pay attention, get off zero. This is happening. Look at the goats, man! We're trying to tell you what's going on. We're trying to give those subliminal signals, right? So we don't look like idiots in the future."
The same way I'm prompting you to take your Bitcoin self-custody seriously. If you still have your Bitcoin on exchanges, this is your wake-up call. I'm applying a little pressure to you right now in these videos because if you don't heed my warning, if you don't trust me that you need to take action now, you are going to undergo a lot of pressure down the line.
Your maximum pain scenario is that MicroStrategy rips and explodes to the upside. Your maximum pain scenario is that Bitcoin rips and explodes to the upside, it doubles and doubles and doubles in price.
Your max pain scenario is that your Bitcoin portfolio becomes worth more and more and more than what your security, tax, and litigation prevention is able to protect against. That's your max pain scenario.
So please, please, please reach out as soon as possible. Give me a text; give me an email; book a call. All the information is in the link in the description below.
Also, it's the same information if you have any interest in being able to say, "I was there. I went to Prague. I got to shake Michael Saylor's hand." You know, barely four months after or six months after I voted for his 10 billion share increase.
In the same way, please feel free to reach out. We have a beautiful place rented. Lots of stuff is going to go on—lots of exciting stuff. Again, this opportunity is not for everyone, and likewise, Bitcoin self-custody is not for everyone. It's just for those that want to be in a really, really unique and exclusive club.
So speaking of an exclusive club, thank you for the few of you that watched this whole video. I appreciate you. Please like and subscribe, share this video. Hopefully, it was useful to you. Hopefully, it was useful to zoom out, and I will see you in the next video.