ICR Conference 2025 Keynote - Michael Saylor

thank you very much we'd like everyone

to take their seats and I know uh people

are like grabbing lunch and they'll be

kind of coming in uh over the next few

minutes but uh Michael sailor is the

founder and executive chairman of micro

strategy which as most of you know is a

publicly traded uh business intelligent

firm and the holder as of today of

450,000 Bitcoin at an average cost of

approximately 62,000 per coin the

company has allocated over 28 billion to

their Bitcoin treasury

strategy Michael's also the founder of

alarm.com he's a named inventor on over

48 patents and the author of the book

The Mobile wave he founded the Sailor

Academy a nonprofit that has provided

free education to over 2 million

students and as we all know he's one of

the world's leading advocates for the

Bitcoin standard with dual degrees from

MIT in Aerospace Engineering in the

history of science Michael posts his

views on X as sailor and on his website

michael.com if you want more information

and we're very fortunate that he's

agreed to speak with us today how about

a warm welcome for Michael

[Applause]

sailor thank you uh thanks for

coming uh I know I took you away from

probably a nonbox lunch

but I'll try to make it worth your while

[Music]

um everybody in the world every investor

every executive is facing an economic

and a technology

challenge you could specify the economic

challenges it's very difficult to

outperform monetary inflation when you

look at the rate at which the currency

Supply is

expanding um most Investments don't

outperform it you know that the S&P 500

is to a certain degree the cost of

capital but all of the safer investment

and asset classes underperform and even

though you're getting wealthier nominal

terms and real terms you're really

not and if you're a company executive

and your company isn't growing

organically 15% a year or more

institutional investors tend to lose

interest in you 15% is a hurdle rate and

uh and when they lose interest your

liquidity and your stock dries up and

then the options Market dries up and

that's a challenge you become in in many

ways you could be a zombie company my

company was a zombie company um we got

to the point where the stock traded $2

million a day there was no options

Market uh we were dead money nobody

tuned into our earnings calls and it

wasn't clear how we were going to to get

ahead and and I would say half of the

Russell 2000 are stuck in that same spot

if not 90% of all

companies and here's one of the reasons

why um the winners in the 21st century

they're all digital monopolies if you

have an Investment Portfolio and it

doesn't include apple and Amazon or

Facebook or Google or Nvidia or the like

you're probably not winning it's very

hard to see how you could be a

successful investor without some

exposure to those

companies and if you look at the rest of

the S&P normally the S&P is the 500

Greatest companies in the United

States 493 of them are fairly boring how

do you how do you actually compete

against a digital Monopoly when someone

has I think Facebook has two billion

users a day or of a billion customers um

and when you can ship a product to a

billion people overnight with a A Punch

of a button that's an enormous

Advantage so all of us we struggling

with this issue how how do you how are

you going to be a winner when you're not

one of the seven

winners um the technology challenge is

very intertwined with this which is you

can't win if you miss the next

technology wave

you know that there was personal

Computing and there was the internet and

there was mobile Computing and now

there's artificial

intelligence and I'm here to say that I

think everybody in the world understands

artificial intelligence is the next

technology wave but I think very very

few people not so many really appreciate

there's another technology wave taking

place and it's it's a digital

transformation of capital it's the it's

digital Capital it's it's happening

right in front of people's faces but

because it's unexpected and it's a

paradigm shift and it's an inversion of

everyone's world view they tend to

dismiss it as

something random unlikely unlucky

scary and um I'm here to talk about

Bitcoin and so bitcoin's the solution to

the problem it's the solution to the

economic problem how do you win when

there's only seven companies that can

win and it's a solution to the

technology question how do you get on

the next technology wave and how do you

exploit it to the benefit of your

investors your family your company your

customers now how do I know Bitcoin is

the next wave why should you think it's

the next wave well here's a chart of the

top 10 largest assets in the world right

now and so if you look at the 10 uh

bitcoin's number seven it is the seventh

largest asset in the world goals number

one then you've got these Magnificent

Seven companies Nvidia Apple Microsoft

Amazon alphabet

meta and you got Saudia

ramco and you got a little bit of

silver but of them the fastest growing

of these is Bitcoin Bitcoin is growing

three times faster than Microsoft why is

it why is it the next wave well it's not

just the fastest growing asset in the

world it's the most popular asset in the

world it's literally the most popular

asset in the world everyone wants to

talk about it it's the most

interesting it's the most digital asset

in the world right you you you can't

digitally transform you can't move um

these other assets at the speed of light

a million times a second between 8

billion computers the way you can with

Bitcoin it's the most useful asset in

the world if you need a billion dollars

in five minutes on a Saturday afternoon

this is the only asset you can

liquidate right it is it is useful to

every company on Earth to every person

on Earth it is global you know these

other things aren't Global assets with

the exception of gold so in essence

Bitcoin is the digit digal gold but but

you know you can't beam gold between 8

billion iPhones and gold is a 5,000 year

old idea and Bitcoin is that idea

reinvented for the 21st

century and now I'm going to give you a

set of suggestions or or a set of

indicators as to why maybe this is

something big why it's not just

random this is Bitcoin versus that asset

allocation chart and you can see that

that um it looks hard to find a solution

when you don't include Bitcoin and when

you put Bitcoin on the chart it renders

every other solution

irrelevant it's like it's pretty clear

there's one thing that's interesting and

everything else is just more of the same

Bitcoin punches a hole into the chart

60% over the past four

years and

um if we zoom into that a little bit

closer this is as set performance uh

since micro strategy adopted the Bitcoin

standard the S&P is uh returning 13% a

year real estate's 10% a year gold 7% a

year bonds are minus 5% a year as you

can see the cost of capital the hurdle

rate there is 13 the only thing that's

beating it that's conventional is the

Magnificent 7 which is a bit more than

doubling it and then Bitcoin is doubling

the Magnificent s so one of these things

things is is is really an

overwhelming uh winner Bitcoin more than

four times conventional performance

let's look out over 14 years it's the

winter in 11 of 14 years so it's not

just it's up over the last four years

it's up more over 10 years 8 years 12

years here's another slice you can look

at everything in the world trying to

find

something which is more compelling but

Bitcoin is showing a annualized

performance of 147% from

2011 but again you know after Bitcoin

you just fall to like your best growth

stock

idea and

uh it's not just it's the best

performing asset it's the best

performing uncorrelated asset it's got

the highest sharp ratio it's also got

the lowest correlation these are these

are Fidelity numbers so the entire ire

world is looking for an investment idea

that's uncorrelated to risk assets you

know we have entire conferences

alternative investment conferences and

we talk about should it be real estate

should it be natural gas rights should

it be intellectual property well Bitcoin

is the global fungible liquid

alternative

asset and uh you don't have to believe

me or look you don't have to understand

the fundamentals even if you even if you

don't want to spend a thousand hours

studying it you can just look at the

chart published by Fidelity it gives you

the same

answer Black Rock announ they launched a

Bitcoin ETF a year

ago uh that

ETF um leaped above

1,100 ETFs that they sell to be number

13 in 12 months so that just shows you

how fast it's

moving you know blowing past a thousand

other ETFs but it's more than that um

that ETF is the most successful ETF

launch in the history of ETFs and I

would say if you look at Wall Street

over 40 years the last big innovation in

Wall Street was the ETF the idea that

you could buy spy or you could buy uh a

portfolio a

QQQ uh or a diversified portfolio of

assets that was the big

idea uh big enough to attract trillions

of dollars of capital

and the most successful example of that

big idea is

ibit Right which has just been a

screaming home

run not only is it run past nearly all

of the Black Rock ETFs and all the other

ETFs it's actually outstripped black

Rock's gold fund which is around forever

I and it did it in 12

months right digital gold is better than

gold uh just like digital photos are

better than physical photos and digital

videos are better than your you know

then your VHS cassettes right it's it's

not a complicated idea I digitally

transform something it's a million times

smarter a million times faster a million

times more ubiquitous a million times

you know lighter than the thing that it

replaced in 2024 10 of the top 20 ETFs

launch were all based on

bitcoin right so everybody's cool ideas

right it's based on bitcoin or some

derivative of

Bitcoin uh those spot Bitcoin ETFs they

are um they're they're compliance

gateways or or wrappers if I want to buy

Bitcoin then I have to solve the

compliance problem the compatibility

problem the convenience problem and in

January of 2024 the first ETFs got

approved in the US to do this this is

the list of them uh in that 12 months

they siphoned up $ 109 billion of

AUM so it gives you a sense of just how

fast they

moved um they were a solution to a

problem right but it's not just a US

phenomena uh ETFs that are backing

Bitcoin coin or or a back by Bitcoin are

popping up every country in the world

and so you can see they're in Canada

they're in Sweden they're in Germany

they're in Singapore they're in

Switzerland they're in

Australia right um they solve a

fundamental issue right uh in some cases

it solves the issue of reporting tax

compliance it may solve the issue of

capital

controls right you know you're seeing

ETFs popping up in Hong Kong eventually

the Chinese will let you own Bitcoin but

they're more likely to let you own it if

it's custody in a bank in

Shanghai right me many uh many countries

they're not cons they're not trying to

keep their citizens or their companies

from getting

rich they're simply trying to keep the

capital from flowing out of the company

or the country so is so it's it's

totally fine for a billion people to

make an investment that makes them money

as long as they keep it in the country

in question and so these ETFs in many

cases they're handles or they're

wrappers but they're um they're also

just solving the problem of how do you

be politically

correct and how do you be harmonious

with all the with all of The Regulators

around the

world wealthy families they're always

looking for how to diversify their

assets it's like uh I own a bunch of

real estate or I own Diversified

portfolio stocks or I want some all

other alternative assets well there's 60

Global billionaires that we know

publicly are invested in Bitcoin I give

you a short list but uh the more

important point is Bitcoin is the

fastest growing alternative investment

for high net High net worth individuals

in the world and it's

a it's a it's a very straightforward

powerful

idea you know I'm going to buy a

building that's that's buying property

to diversify myself and get away from

risk exposure that's great but buildings

are liquid and they're not

fungible uh what if I could buy a

digital building and I could buy it $200

at a time or $200 million at a time or2

billion doar at a time and what if it

offered the same economic property

rights if it offered the same

characteristics whether you bought $200

or $200 million

of it that's a powerful idea it's a

fungible idea it's a global idea it's an

idea people can remember right and it's

not likely that you can buy the same

physical assets that Elon Musk and Mark

Zuckerberg own but you can buy the same

Bitcoin they own and you've got the same

rights per pursue to

them there's s 70 public companies that

are capitalizing on bitcoin right now

you're starting to see this

explode uh companies like simler

companies like Mara and Riot and and CER

you know all of them are realizing that

if they recapitalize on bitcoin they go

from investing in uh a bond that loses

10% of its value a year to a Bitcoin

that gains 40% more value a year it's

simply flipping of a light switch this

is a virtuous economic Dynamic it's

spreading

you see 70 companies then it'll be 700

then it'll be 7,000 then it'll be 7,000

there's 400 million companies in the

world who doesn't want

money um those Bitcoin ETFs are

outperforming all the commodity ETFs so

I show you every commodity ETF what you

see is bitcoin's crushing

Everything Gold is second best

the rest are just trading

Vehicles right you can buy some gold and

you'll get an average performance you

can buy Bitcoin and get good performance

everything else is just a trade all

other Commodities are pretty awful to

hold for more than a few years you're

not going to invest your family's life

savings and natural gas or soybeans for

100 years and you can probably figure

out

why um Bitcoins those ETFs are also

outperforming the bond portfolios as you

can see if you're thinking Bitcoin

versus bonds well you know bonds are all

fairly lame

boring

um right now you're starting to see a

movement to 1 to 3% allocation you know

the 6040 Bond portfolio that that's

going to change right that's not going

to last much longer uh that 1 to 3% uh

allocation to bitcoin will eventually

become a 5 to 10% allocation to bitcoin

when you start to see conventional

portfolios with just 1 two 3% allocation

you know the price of Bitcoin skyrockets

but when it gets to 5 to 10% allocation

it's definitely going to be in the

millions and so if I put Bitcoin up

against every other ETF what you can see

is that it's you know it's still

outperforming them all it's the fastest

horse in the

race you can see where black Rock's ibit

sits on the leaderboard right now but

you can also see that at the rate that

it's growing ibit may very well be the

largest ETF in the world within 10 years

I I would think it's more likely than

not based upon the performance

characteristics of the

industry uh bitcoin's beating your

favorite hedge

fund right uh it is The

Benchmark um it was up 121% in the last

year but again when I when I look I'm

looking at out and I'm saying well we're

getting 60% a year from Bitcoin like

show me a hedge fund that's going to

give me 60% a year over four years you

know show me someone that's going to

promise me 30% a year for the next 20

years and not charge me a

fee right and give me complete liquidity

and Redemption it's not easy so you see

the world's inverting you know

um and that takes us to the question of

what is bitcoin well Bitcoin just

requires a return to First principles

it's a it's a new form of Technology it

is it is economic technology I think of

it as digital

energy

but you know if you started with this

Trope and you said what did Satoshi do

Satoshi discovered a method to transfer

value uh without a trusted

intermediary and people often times

repeat that but that's the small idea

it's not the big idea

yes we transfer a billion dollars from

point A to point B without a

bank the big idea is in order to

transfer value without an intermediary

you have to store the value without an

intermediary the big idea is I put the

billion dollars into

cyberspace

forever money and order the big idea is

we launched a payload into orbit when

you launch a payload into a ballis

trajectory it comes back to earth when

you launch it into orbit it orbits

forever right when you get to escape

velocity maybe it's never coming back so

imagine the idea that I could put a

billion dollars into a bank in

cyberspace that would stay there

untarnished not

corroding right without being debased

forever like forever is such a powerful

idea right it's frictionless it's

superconducting

the big idea is store value without an

intermediary it means you transcend

Banks you transcend physical laws right

it this represents a digital

transformation a capital from financial

and physical assets to digital pure

digital like how how much does a book

weigh if it's the encyclopedia Botanica

how much does it weigh when is a digital

encyclopedia branica one of them is a

billion trillion times

lighter than the other it's the

fundamental phase shift and now what's

that worth well Global wealth is divided

across a bunch of assets here's a $900

trillion wealth

chart people own half those things for

utility they own buildings to to live in

or work in and they own cars to drive

and they own companies to operate but

the other half of the assets are just

held as a long-term store of capital you

bought it because you had money and you

needed to put the money to work so you

bought the you have a land bank you

bought a bunch of land you bought a

bunch of commercial real estate you

bought a bunch of

bonds half of everything is just

long-term

capital so if that's what half of

everything is what's the problem well

the problem is when you put your money

your 450 trillion into that long-term

capto investment you get hit with taxes

income tax you get hit with wage control

price controls

regulations there's a fire in California

there's a

hurricane in Florida there's a war in

Russia and Ukraine there's a currency

collapse in Egypt there's a bank failure

in

Lebanon right these are all the things

that cause you to lose money if you're

an investor and you've lived long enough

you can probably give me 30 40 50 ways

you lost money most 10ks have 30 40

pages of risk factors of just ways you

can lose money there's a lot of ways you

can lose in the world that's I'm going

to call it entropy I'm going to call it

chaos I'm going to call it the passage

of time your Warehouse just gets older

it was a good warehouse and 40 years

later it's not a good Warehouse you have

to rebuild

it what's that cost well that cost about

$1 trillion a year it's 3% of 450

trillion right it's costing us money to

store you know I'm going to put a

billion dollars in your hands and you

got to go buy up everything you want in

Asia and hold it a 100 years then play

all these out and you realize there's

going to be an entropic lapse there's

going to be an inefficiency

there well Bitcoin is an asset without

that Financial Risk of the currency the

stock or the bond you're going to buy

and it doesn't have the physical risk of

real estate or property because you put

it in cyberspace it is an orbit it is

outside of the political domain outside

of the physical domain outside of a

currency

domain and that is and that is a a

solution to long-term capital so what

you see is you see smart money

everywhere in the world smart PE here's

the big idea of Bitcoin you get to keep

your

money that's the idea

who cares people that live in China and

Russia and Africa and South America and

Asia and Europe that want to keep their

money and so the money is

Flowing from those long-term capital

assets from that warehouse from that uh

currency from that South American

bond from that bar of

gold is flowing into

Bitcoin Bitcoin is digital Capital so I

would I would submit to you I think the

greatest digital transformation of the

21st century more important than digital

music or digital books or digital video

or digital education or digital Fillin

the blank is the digital transformation

of capital Bitcoin is digital capital

and if it's digital Capital it's going

to transform the capital markets

so imagine your $100 million building I

give you a $100 million and you own a

building in

La okay or put it in Miami or put it in

any city in the world in

Istanbul and now digitally transform it

what happens when you digitally

transform the100 million building well

you get rid of all the things that are

liabilities you get rid of the tax the

traffic the tenants the torts the

trouble the weather the corrosion the

regulator this the

the the um fact that you can't move it

and then you add all the things that

make something more valuable right how

do you make the building more valuable

you make it invisible indestructible

Immortal teleport programmable divisible

you make it fungible configurable you

make it volatile these things make the

building more valuable the other things

make the building less valuable Bitcoin

is in essence just that digital

transformation if you had your1 million

building in

Ukraine or you had it in Syria or you

had it in fill in the blank Venezuela or

Cuba or

LA or you had it in the in the path of

whatever storm or you had it in

Moscow what's it worth now right and and

how does it degrade

digital capital is global

Capital right this idea of a building

right it's like we can debate whether or

not you want your building in New York

or Miami or LA or San

Francisco but if I took a if I gave you

a billion dollars and I dropped you in

Africa and I said to you okay I want you

to go buy a mixture of African uh assets

worth a billion dollars buy anything you

want buy it in any country buy land buy

The Bu buy the buildings buy the

companies buy your favorite African

currency buy the Egyptian pound buy the

naira buy the krugger

Rand buy a concession on a whatever

Safari buy tents buy mineral rights buy

it all the catches you have to hold it

for 100 years in

Africa what are you going to buy

and now here's the second question if I

gave you a choice you can either buy all

that stuff and be locked in that in that

investment for a 100 years or you can

buy digital capital on the Bitcoin

Network that all the other smart rich

people own and that you can carry with

you uh in your pocket or you can zap it

out of the you know Out of

Africa and it's in cyers space and it's

not subject to African political

jurisdiction and no Warlord AFC is going

to take it you don't have to trust an

African

bank and you you can live in Africa as

long as you want until you decide you

want to move so is it even a I mean is

it even a difficult

question let me play the question a

different way I'm going to take all your

money right now I'm gonna I'm gonna uh

cast a spell and I'm going to teleport

it all and I'm going to spread it

equally across a mixture of Market

Basket of assets Ina afca and I'm going

to say hey I played a magic trick on you

I moved all of your assets into the

middle of all these countries in Africa

and now I'm going to give you a a green

button you can hit the green button and

move it all

back or I'm going to give you an orange

button you can move it to cyberspace or

you can leave it there and and so when

people wonder like why is money flowing

into Bitcoin why is the price going up

it's not going up randomly it's it's

going up in the same same way that water

flows downhill and it's it's going in

the same way that that capital is always

fleeing from a less secure situation to

a more secure

situation because it's just a natural

human

behavior you have a billion dollars in

Nigeria you can buy a billion in Bitcoin

but you you cannot buy a billion dollars

of real estate in New York City and you

cannot put your billion dollars into JP

Morgan and so you see on a relative

basis there's a certain appeal here and

then here we we can see Bitcoin is

um it's a revolutionary advance in

capital preservation everything you own

in this world probably has a useful life

of 10 to 100

years so what if I give you something

with a useful life of a thousand

years like when gold inflates a 2% a

year that means it's got a halflife of

35 years your capital and gold as a 30 5

year halflife when something inflates at

0% a year your capital on that thing has

a half life of

forever there's a the difference between

2% and 0% is I live 35 years I live for

a billion

years it's a pretty big difference when

you compound

it so this thing we call Bitcoin it's a

network it's secured by energy it's by

electrical energy by computer power by

political Power by economic power it's

simply put it's the most powerful crypto

Network in the world has the most

popular support it has more computer

power than Amazon or Microsoft could

muster if they wanted to people say

What's it back by it's just backed by

power a lot of power right the political

power to topple or tip an election which

is what just happened in the US right

the computer power that that is is such

a dense hash wall that every computer on

Earth turned against it wouldn't Dent

it um let me switch gears to a 21-year

Outlook of Bitcoin what do I think's

going to happen well I've got an open

source model it's called Bitcoin 24 you

can Google it it's on GitHub you can

download this you can plug in all your

assumptions and create your own

forecast but I think looking out over

the next 21 years you know I just I I

think the money supply the currency

Supply will continue to grow you're

going to you're going to continue to see

Innovation you're going to see equities

continue to grow gold will gradually

underperform of course bitcoin's going

to overperform equities will overperform

because of AI and

technology and this is a simple a simple

view I put fourth in Nashville in July

and I haven't really changed from it I

expect the bitcoin's going to go from

60% AR decelerating to 20% for a blended

rate of

29% I think the volatility of Bitcoin

will go from 60 Vol decelerating to 20

Vol for a blended Vol of whatever the

same and I think that you know if you

look out 20 years it's still going to be

growing faster than the S&P a bit 50%

more it's still going to be 50% more

volatile than the

S&P but you want a simple view of the

market you just think here's something

which is 29% AR for the next 21 years

targeting $13 million a

coin and if you look at that against our

map of wealth it's not that radically

different um just Bitcoin becomes the

global monetary index a $280 trillion

asset class equities will still be

bigger real estate will still be bigger

bonds will still be bigger it's just you

know if you want to get rich you're not

getting rich investing in

gold right if you want to stay Rich you

can probably hold a diversified

portfolio of real estate and Equity if

you want to outperform you're going to

need

Bitcoin we're entering the era of

institutional adoption now this 10 years

this is the Gold Rush

era right in 24 Bitcoin emerged as a

viable alternative to bonds and a in a

corporate portfolio that was the first

year now you see all these public

entities that that are holding Bitcoin

115 different ones so this is

spreading as I said it's a virus it's

going to

accelerate uh there's a wave of

political support for Bitcoin it's

surging you can see the entire cabinet

is pro Bitcoin the White House is pro

Bitcoin the Senate and the house are pro

Bitcoin you know you've got a senator uh

proposing a Bitcoin strategic

Reserve you've got Larry thinkink

advocating for Bitcoin on CNBC and I

just showed you the Black Rock numbers

they're

Stellar you've got Donald Trump never

sell your Bitcoin right it's all you

need to

know you've got Senator lumus I

encourage people to buy and hold I

encourage them to say Bitcoin for their

retirement for their

future you've got Joe Karan debating

with Mohamad a lot of people that are

nodding with you because we can deflate

our way out of some of the step but the

difference between 2% and 3% compounded

for the dollar is devastating and and

you're saying you should buy

Bitcoin um in 2025 with the first year

of the crypto

Renaissance right I think what you're

going to see is um you'll see

improvements to the Wall Street ETFs um

you're going to see fair value

accounting from fby which will be a big

boost uh you've got 250 plus pro crypto

uh Representatives or senators in

congress I think you'll see the repeal

of Sab 121 which allows Banks to enter

the asset class and start to bank

Bitcoin that's going to be a big deal

the end of the war in crypto is just a

big deal and uh I think the arrival of a

digital assets framework and a bunch of

Bitcoin standard companies all of these

things are are in progress process right

now uh a few words on micro strategy

we're powered by digital

Capital what do we do we flipped to the

Bitcoin standard about four years ago we

started buying Bitcoin and we've just

been accumulating every

quarter 46 48 successive announcements

we're up to 450,000 Bitcoin as of this

morning and uh what are we doing what we

do is is we issue Securities debt

Securities like convertible bonds or the

like in order to create Leverage

we raise permanent capital and then we

have an equity which is a bit more

volatile and a bit higher performance

than Bitcoin we generate The Leverage

with fixed income instruments which are

less volatile uh lower performance than

Bitcoin and on top of our Equity is a

very vibrant options market and then uh

and then the fixed income instruments

offer a different

opportunity uh for fixed income

investors you could think of us as like

a Bitcoin Refinery you know crude oil

goes in one side and you have like

kerosene gasoline coming out the other

side um Bitcoin is just crude Capital 60

Vol 60 AR the world's full of people

that that want 15

ARR and 10v they don't want 6060 so

we're just stepping down the Bitcoin and

we're giving people the flavor they want

uh what's happened well we basically

almost doubl the performance of Bitcoin

not quite over the last four years and

you so you can see how uh the phrase I

have and I use often is the only thing

better than Bitcoin is more

Bitcoin it you can't beat 60% ARR you

can't beat that except if you borrow

money at 0% interest and you buy the 60

AR then you can beat it so we borrow

money at 0% or 1% interest with

convertible bonds then we buy something

going up 60% and that's how we beat

Bitcoin and you have to have a public

company with a large permanent Capital

base in order to lever it so we're using

our permanent Bitcoin capital in order

to issue the fixed income securities in

order to create the

leverage and that has allowed us to

outperform every S&P 500 company over

these four years by a large margin um

and of course part of the trick is to be

more volatile we're the most volatile

company out of the S&P

500 okay and volatility is thought to be

a bug we think it's a feature capital is

thought to be toxic we think it's an

asset right and so we pursue the

volatility the volatility gives the

stock options uh value and that gives

the convertible bonds value and that's

how we're able to raise Capital

quickly right and if you look at what's

what volatility has done for us it's

made us one of the the top top 10 uh

biggest options markets in the S&P

universe and we're also one of the top

10 most traded names in the S&P universe

and the thing on the left is interesting

but the thing on the right kind of tells

you the story what's really going on

here we have the largest options open

interest as percentage of market cap in

the entire market and we have the

highest daily trading volume the most

liquidity as percentage of market cap in

Mar in the market another way to say it

is we're we're running very hot we've

created a crypto reactor Bitcoin is the

fuel and conventional wisdom is strip

volatility from the balance sheet strip

volatility from the p&l but when you do

it you destroy the options market and

you destroy your own

liquidity right and of course we are

serving as the institutional Gateway for

you to short Bitcoin or go long Bitcoin

with leverage and we're happy for people

to do either have to be two sides to

every trade so you can see we're about

you know not quite 10 times bigger than

the options market for straight

Bitcoin you should power your company

with Bitcoin this is the speech I gave

to Microsoft I said they should try some

Bitcoin why because it's the highest

performing uncorrelated asset a

corporation can hold on its balance

sheet right Microsoft's 18% a year uh

performance versus Bitcoin

62% bonds minus 5% those are the only

three numbers you need to see now what

look what happens

next if you're Microsoft and you

generate a 100 billion in cash flow and

you sweep your cash flows into your own

stock you underperform Bitcoin by

97% you basically lose 97% of your gains

because you're

buying you're buying a plus 18 instead

of a plus 62

right but look at this one if you're

Microsoft and you put 100 billion

dollars into US treasury bills it's a

minus

99.7% trade it's

horrific the bonds are

toxic now anybody that went to Harvard

Business School knows this but their

solution is the wrong solution the

solution is surrender all the money

throw the money away because the money

is toxic s show me a rich family that

came up with the idea of throw all the

money away to solve their

problems right if you're going to

perform in a superior way you're not

going to do it without digital Capital

there's Microsoft there's Nvidia that's

micro strategy in the same time

period we're not smarter than them and

we don't work harder than them right

we're the people building with steel and

they're building building with

wood I have a gun they have a bow and

arrow it's

technology right look at micro strategy

versus Microsoft here we have

effectively the same size options

market and our stock trades more than

theirs why because they stripped the

volatility from the balance sheet and

they stripped the volatility from the

p&l because that's what Harvard B School

classic Finance tells you to do what

happens when you strip your volatility

you have a 98% collapse in your options

Market you have a 99% collapse in

liquidity and this is masked by the fact

that they're so large but this is not

good for them this is not good for

someone holding 10 billion dollar of

Microsoft stock it's not as good a

collateral and it doesn't generate the

same return this is not what you should

be aspiring to

so every company has a choice to

make cling to the past which is

conventional I buy treasury bonds I do

BuyBacks I pay out dividends or embrace

the future which is I use Bitcoin as

digital capital a different idea Bitcoin

buys instead of stock

BuyBacks the first choice is regression

you're divesting your earnings yearly

you're increasing investor risk and

you're slowing your own growth the

second choice is progression you're

investing your earnings back into your

own business you're decreasing risk and

you're accelerating

growth right this is actually Microsoft

in the past five years they have

surrendered $200 billion of

capital just surrendered it right they

generated 200 billion and and how does

it help the sholders today it doesn't

it's gone they literally gave it

away and what did they do by giving it

away they an these are the risk factors

in Microsoft's

10K not mine theirs they disclose them

they're amplifying their own risk when

you're buying your stock back you're

Levering up your own equity on your own

risk

factors how do you get out of that

vicious cycle right the best way to

escape the cycle is reverse the process

and start to invest in a diversified

uncorrelated highly performing asset so

Bitcoin is the asset without

counterparty risk you don't have risk to

a competitor a country a corporation a

creditor a culture or currency that's

the point get rid of the

risk now now what if you could buy a

digital Monopoly growing at 60% a year

at one times

Revenue and what if that company was

more profitable than your own company

would you do it who wouldn't do

it what if you could keep doing it every

year

forever well that's Bitcoin right

Bitcoin is the universal Perpetual

profitable merger partner right what

you're doing is the transformational

merger but you're doing it with a a

crypto Monopoly so when you evaluate

your options you can plug in that same

model and I did it for Microsoft and I

looked at their business I looked at

their cash

flows right and I looked at what happens

if they convert their existing assets to

bitcoin or if they sweep their dividends

into Bitcoin or they replace their

BuyBacks with Bitcoin or they just

borrow a little bit of money cheap to

buy Bitcoin and what's the result the

result is if they just convert some of

their spare cash that make 155 bucks a

share and if they replace the dividend

they make $362 a

share right and if they get rid of the

BuyBacks

$477 so it's worth anywhere from $100 to

$500 a share do they have to change

their Core Business not at all right the

other catch is they double the value of

the

company right what happens to the market

cap of the company well status quo is

nothing

good that little change is worth a

trillion dollar

right if you go to full triple Maxi it's

$5

trillion right you can just be worth

five you know8 trillion instead of three

trillion or whatever what's the downside

no you just get

rich okay this is another way to see

Microsoft 5% of Microsoft's value is

based upon its tangible assets it's it's

actual liquid assets right now 95% is

based upon forward expectations

when you actually start to reinvest in

Bitcoin your stock is valued 41% on on

your assets and only 59% based on

expectations so conventional wisdom says

value the company based on forward

expectations but but you know the

richest people in the world aren't

valued based on expectations of how hard

they're going to work Bernard Arno and

Jeff Bezos and Elon Musk they're not

valued based on how hard they're going

to work they're valued based on what

they own your family's value based so

why wouldn't you want to own something

right Bitcoin is the thing to own so the

snapshot here is you know you can crank

the stock price up improve the ARR you

know the growth rate for the investors

create trillions of dollars of value all

you have to do is manage your balance

sheet differently you're capitalizing on

bitcoin not capitalizing on

bonds and I'll just end with some

observation if it's good for your family

and good for your portfolio and good for

your company it's probably good for your

country why not power your country based

on bitcoin so this is Senator lum's

proposal the idea is to buy some Bitcoin

for the United States actually a million

Bitcoin over the course of five years

why because it's a peaceful Equitable

solution for solving political

differences it'll actually lay in place

a foundation for the US to lead lead

economically and ideologically without

violence in the 21st

century it's because you're harnessing

you're you're assuming economic and

Technology leadership in the world

trillions of dollars of money is going

to flow into this network and you can be

the primary beneficiary if you're the US

and you own it the US already has the

world Reserve currency why wouldn't you

want to own the world's Reserve Capital

Network that's what Bitcoin is the

world's Reserve Capital Network and what

you're doing when you support it is

you're attracting the capital from the

Chinese the Russians the Africans the

South Americans the Europeans into the

network all that capital is going to

flow and we're going to be the

beneficiaries if you plug that Bitcoin

24 model in the lumus bill what it does

is cut the US debt in half over 20 years

but if you think about the

Precedence we bought the Louisiana

Territory for next to nothing $15

million and then we bought California

and Mexico and uh and Texas from in in

the Mexican War and then we bought

Alaska look at all those

purchases when we bought Alaska we