How Companies Can Use Bitcoin Strategy Similar To MicroStrategy

20-minute micro-strategy is executive chairman Michael Sailor.

Michael, I gotta give you props from my man.

So August 10th, 2020, micro-strategy is adopted

as Bitcoin strategy.

The expert's called you a fool thus far.

You're crushing everything.

I mean, I'm looking at the list.

Even Bitcoin you're crushing.

But some of these other known, the S&P, you're destroying.

Google, Microsoft, Apple, you beating them all

by easily oracle.

So, take us back to when you made this decision.

You knew you would be ridiculed.

Why did you do it?

Thanks Charles for having me.

You know, most corporations are being torn apart

by these twin forces of inflation from the government

and then technology driven deflation.

So, if you're a main street company,

you're forced to fight for your survival

with one hand tied behind your back.

If you're gonna keep up with the Magnificent 7,

you're gonna have to grow your revenues in cash flows

20% a year or faster, add in for an item.

You know, so the seven companies

that generate all the shareholder returns

are 7,000 companies can't keep up.

What we did in August of 2020 was recognize

that there's no way we're going to outgrow Google

and Microsoft and Apple computer

as a mid-size software company.

So, we started looking to do an acquisition

of a high-growth digital monopoly of our own.

And we realized that Bitcoin is like a high-tech,

dominant digital network growing at 40 or 50% a year.

And so, we bought it.

It's kept growing 40 or 50% a year.

And now we're using our balance sheet

to grow the company as well as our PNL.

Let's talk about the business side of it.

The AI side of it is all the rage obviously.

What is micro-stratégies known

with respect to artificial intelligence?

You know, with the first B.E.I. company

to incorporate artificial intelligence into our product.

And so, we're feeding it to our customers.

They love it.

It allows them to build applications faster

and it gives them answers faster.

And AI is both making our product better

but is also accelerating a conversion

from one premises to the cloud.

So, we see it as a great road driver for the business.

Michael, you tweeted a very compelling tweet

on November 4th about Bitcoin offering corporations,

innovative strategies to preserve the capital.

Sort of what you just talked about.

What I thought was even more compelling

is you said to escape the destructive cycle

of expensive acquisitions, buybacks, dividends and debt.

Those are all the traditional ways companies are told.

They can reward shareholders.

They're saying, skip all of that and go straight to Bitcoin.

Yeah, what I'm saying is, you know,

decapdelizing the company by giving the capital back

in a buyback or divviting it out

and paying the tax on the dividend

or engaging in dilutive acquisitions

or pursuing breakneck growth initiatives

that may or may not work.

All of these things are part of the conventional corporate

finance playbook, but they don't work.

99% of the companies are failing using that

and they do it because if they just hold their capital

in government securities, they generate 3% after tax

and the cost of capital is 12 to 15%.

So, Bitcoin is the solution

because you can buy Bitcoin right a 20 to 40% tax deferred

and you can beat the cost of capital.

And pretty soon you're firing on all cylinders

because your balance sheet is generating investor returns

as well as your PNL.

Before I let you go, Bitcoin on a tear right now,

what do you think over the next year,

what could be some of the drivers that take it higher?

Look, the supply and demand are in balance right now,

but after the having in April,

the supply gets cut in half.

And after the sort of spot ETFs come online,

the demand's got at least double.

So, the only thing that's gonna adjust there

is the price in order to get the market to clear.

And so, I think you watched the spot ETFs

and you watched for the having

and the next 12 months are pretty auspicious

for the asset class.

Yeah, I'm waiting.

Michael, great stuff and again, congratulations,

appreciate it.

Thank you, Charles.