Transcription
Happy February 1st! JLD here, and welcome to Micro Strategy Today. This show is going to be a little bit different. I've decided to do a show on whether you should sell Micro Strategy.
I'm a long-term holder. I am happy as a clam. I'm not going anywhere. But I've been seeing a lot of FUD—fear, uncertainty, doubt—surrounding Micro Strategy. I've been seeing a lot of frustration and disappointment by certain shareholders in my comment section, and I get it. This is a very volatile and intense stock, let's just put it that way.
So, I've created this presentation for you if you're a person who's wondering if you should sell Micro Strategy. Let's talk about it now.
First and foremost, if this is your first time watching this, and this was sent to you by a friend, I'm the host of this show right here called Micro Strategy Today, which is a seven-day-a-week show where I talk about the latest and greatest updates and insights on all things Micro Strategy, Michael Saylor, and of course, Bitcoin in general.
So, make sure to hit the subscribe button if you want that kind of content daily—Micro Strategy, Bitcoin, Michael Saylor content delivered to you seven days a week.
I also wanted to bring to your attention before we start that I've created a one hour and 48-minute presentation called The Complete History of Micro Strategy. Again, this is an hour and 48 minutes. I'm going to refer to it a few times throughout this presentation because if you're kind of scratching your head at some of the things I'm about to say, go and watch this one hour and 48-minute presentation.
It is the complete history from 1989 until present, and it really focuses, of course, on the past four years when Micro Strategy adopted the Bitcoin standard, the Micro Strategy playbook, and it answers a lot of the questions you may have regarding some of the things I'm going to say.
Now, let's kick on into whether you should sell MSTR.
You should sell MSTR if:
1. You do not believe Bitcoin is the best preservation of capital in the world. In 2020, Michael Saylor recognized that Bitcoin was the best preservation of capital in the world, and as a result, Micro Strategy committed to intelligent leverage in order to acquire as much Bitcoin as possible and hold forever. If you do not believe that Bitcoin is the best preservation of capital in the world and do not believe that Micro Strategy's acquisition strategy of Bitcoin is brilliant, you should sell MSTR. Not financial advice.
2. You do not believe Michael Saylor and Micro Strategy have the shareholders' best interest at heart. During the Q3 2024 earnings report, Michael Saylor stated that he considers the shareholders of MSTR as his partners. He further stated that every action Micro Strategy takes is to benefit the long-term value creation for his shareholders. If you do not believe that Michael Saylor and Micro Strategy have the shareholders' best interest at heart, you should sell MSTR. Not financial advice.
And there you see in the bottom right-hand corner, I put the image of The Complete History of Micro Strategy, which again you can watch, and we go through the Q3 earnings report in detail. You can hear Michael Saylor saying these very words for yourself.
3. You should sell MSTR if you do not agree with and/or understand Micro Strategy's focus on increasing shareholder Bitcoin yields. Michael Saylor has made it very clear that the main key performance indicator Micro Strategy aims to improve is the Bitcoin yield of their shareholders. Every action Micro Strategy takes is first and foremost to intelligently increase the Bitcoin yield of its shareholders. If you do not agree with and/or understand Micro Strategy's Bitcoin yield strategy, you should sell MSTR. Not financial advice.
Again, The Complete History goes through a lot of this to help you in understanding it if you so desire. I will put the link to The Complete History as the first link underneath this video in the show notes section.
4. You should sell MSTR if you are going to complain or be disappointed every time Michael Saylor sells shares at the market, aka hits the ATM. Michael Saylor will sell shares at the market at every intelligent opportunity he deems will increase shareholder Bitcoin yield. Michael Saylor does not care about the short-term price action. His focus is on acquiring as much Bitcoin as possible, as fast as possible, in an intelligent and strategic manner.
This means that as long as it benefits the shareholders and increases our Bitcoin yield, Micro Strategy will continue hitting the ATM. If you cannot see the long-term value in selling shares at the market, immediately buying Bitcoin, and increasing shareholder Bitcoin yield, you should sell MSTR. Not financial advice.
5. You should sell MSTR if you think Michael Saylor's strategy of selling shares at the market is dilutive. Michael Saylor will continue to sell shares at the market, hit the ATM at every opportunity he finds that will benefit the shareholders and increase our Bitcoin yields. When Michael Saylor hits the ATM and immediately buys Bitcoin, this action is accretive, not dilutive, because it increases the only KPI—key performance indicator—that matters to Micro Strategy and shareholders who are in the know, like me: Bitcoin yields.
Yes, this action does decrease the short-term upside of MSTR, but Michael Saylor does not care about the short-term. His actions are for the long-term value creation of his shareholders, and the accretive action of hitting the ATM does just that: increases the Bitcoin yield of the shareholders and the long-term value. If you do not agree with and/or understand how at-the-market selling is accretive to Micro Strategy shareholders and not dilutive, you should sell MSTR. Not financial advice.
Again, The Complete History of Micro Strategy goes into this, so please watch if you're scratching your head or you just want to learn more.
6. If you complain and are frustrated when Michael Saylor hits the ATM, you should sell MSTR because he will never stop taking this action when he feels it is intelligent to do so, increases BTC yield for shareholders, and benefits the long-term value for shareholders.
7. You should sell MSTR if you do not understand the importance of volatility to the success of Micro Strategy. Michael Saylor has two quotes that I love: "Volatility is vitality" and "Volatility is a feature, not a bug." Nothing goes up and to the right forever without retracements. In choppy times, Micro Strategy is no different.
The difference with Micro Strategy is that it's the volatility that makes MSTR so valuable in so many ways. MSTR will have violent moves to the upside, violent moves to the downside, and occasionally will chop sideways. If this type of volatility is overly stressful to you, you should sell MSTR.
Michael Saylor is always going to take intelligent action to increase volatility because he knows that volatility is a key factor of Micro Strategy's long-term success. Yes, it may feel painful in the moment and in the short term, but Michael Saylor is not concerned about the short term. He is focused only on long-term value creation for his shareholders and knows volatility will provide this.
Why does volatility provide this, you may ask? A stock with little or no volatility is a dead stock. Volatility attracts traders, the options markets, etc., and provides massive value for convertible note holders and other companies buying Micro Strategy's many financial instruments. If you are not ready for the roller coaster ride of a lifetime with massive volatility, you should not invest in MSTR. Not financial advice.
8. You should sell MSTR if you think Micro Strategy will provide a short-term 2x leveraged return to Bitcoin. Micro Strategy is not a short-term 2x leveraged play to Bitcoin. Michael Saylor and team use intelligent leverage to outperform Bitcoin over the long term. Michael Saylor has mentioned in the past that their expectation is somewhere around 1.5 to 2x return of Bitcoin over a long time horizon.
Again, this is over the long term, and Micro Strategy is a dynamic company, so even those expectations could change higher or lower depending on future circumstances. If you are looking for a direct 2x return of Bitcoin, there are ETFs out there that provide this. I do not give financial advice, and I'm not recommending these instruments. I am only pointing out that Micro Strategy is not a direct 2x return of Bitcoin.
So, if you find yourself complaining that Bitcoin is up 2% on the day and Micro Strategy is not up 4%, you should sell MSTR and find a product that serves your desires. Not financial advice.
In summation, Micro Strategy is not for the faint of heart. I create a daily show, and I'm talking seven days a week—Christmas, New Year's Day, it happens on Micro Strategy—because I have done hundreds of hours of research and consumed hundreds of hours of content created by Michael Saylor and others around the topic of Micro Strategy.
I love what Micro Strategy stands for and the direction they are headed. Micro Strategy is using intelligent leverage to acquire as much Bitcoin as intelligently possible because they believe Bitcoin is the perfect preservation of capital, and I happen to agree.
Micro Strategy is becoming the Bitcoin treasury company of the world and will continue to innovate on this opportunity moving forward. There are plenty of unknown strategies and opportunities that Micro Strategy will partake in in the weeks, months, and years to come, and I am excited to be a part of this journey as a shareholder and content creator.
To be clear, I do not give financial advice, and this video is not financial advice. It is simply meant to be education for those who are interested to learn what I have learned about Micro Strategy over the years and bring clarity as to whom this investment is for and, as importantly, not for.
To those joining me on this roller coaster, strap in because it's going to be a wild ride.
All right, one last plug for The Complete History presentation that I created. It's an hour and 48 minutes. It took me hours and hours of work to put this together, and it is so good because it addresses so many of these issues that I talked about in this presentation today.
So, you can check it out in the show notes page. We just have it listed as a link: The Complete History of Micro Strategy.
And I want to say this: I create Micro Strategy Today literally seven days a week because I love this company, because I love the direction that they're going in. I am very biased and prejudiced on Micro Strategy because I have done the work. I believe in them fully.
I definitely want to present both sides of the equation when they come up, but at the end of the day, most of the stuff that comes up against Micro Strategy, in my opinion, is FUD. It's spreading fear, uncertainty, and doubt for reasons that are not true to what Micro Strategy is doing or stands for, but because there are people who are trying to cope with the fact that they missed out on Micro Strategy, are shorting Micro Strategy, and want the stock to go down, or just have something against Bitcoin and cryptocurrency in general.
That's just a reality. So, this video is meant to clear up a lot of the questions that I see in my comment section about why isn't Bitcoin, why isn't Micro Strategy going up 2x Bitcoin, like what's going on with this news article and that news article, like what's happening with the tax situation.
Like, Michael Saylor and Micro Strategy, they are working tirelessly, relentlessly for you, for me, the shareholders, and I sleep so well at night knowing that that team, those incredibly brilliant minds, are working to make Micro Strategy the Bitcoin treasury company of the world.
I'm a proud shareholder. I'm very pro-Micro Strategy, obviously. I report on it every single day.
If you enjoyed this, please comment below. Let me know where you're watching from. Give me your feedback on this video. I'm trying to get better every single time I create a presentation or a daily show like this, so definitely let me know what you liked, what you didn't like, any comments, any questions, anything you think I should add to a video, and maybe I'll do a future one on this topic, adding your thoughts and your advice.
So, as always, remember this video is not financial advice, and as Michael Saylor says, there is no second best. What's the second best? There is no second best.