Why Bitcoin Is A Swarm Of Hornets

All right, so in a recent expos, Michael Saylor, the executive chairman of Strategy Road,

Bitcoin is a swarm of cyber hornets serving the goodness, the goddess of wisdom, feeding

on the fire of truth exponentially growing ever smarter, faster and stronger behind a wall

of encrypted energy.

Do I need me now?

Strategy, executive chairman, Michael Saylor.

So Michael, I had to go, I went on AI to ask if hornets are indeed good.

And the answer was yes, hornets are beneficial for the ecosystem.

So they play a valuable role in controlling pest populations, even contributing to a

pollinization.

So I guess it's a good appropriate metaphor there.

You know, Bitcoin is a virus.

It's a freedom virus.

It's based on a monetary virus that's in turn based on a truth virus.

You know, and we think of it as a swarm creature because everywhere in the world, there's

someone that's supporting the Bitcoin ecosystem with their electricity, their computer power,

their political power, their economic power.

And it's about as unstoppable as a swarm of hornets are unstoppable.

You can't shoot a bullet through it.

You know, it's spreading all throughout the world and it just keeps getting stronger day

by day, week by week, month by month.

This is something that told us it was going to happen for the last few years.

Now I've got to ask you though about this, this, the Bitcoin yield.

I saw on your website 4.4%, Bitcoin yield this quarter, 25% year to date, those sound

like very lofty numbers.

But what does it even mean to folks out there?

You know, so Bitcoin's a long term asset.

You know, you want to hold it for 21 years.

It's been returning about 50% plus a year.

It's very volatile.

Believe it or not, there are a lot of people that want 2x Bitcoin.

They don't want the Bitcoin return.

They want 100% return.

So, micro strategy, the equity or strategy, the equity is amplified Bitcoin.

We actually aim to generate 2x the Bitcoin return and 2x the volatility.

And the way we do it is by issue and credit instruments.

So believe it or not, there's someone that would like to get double the money market return

or double the yield of their bank account.

So if you give them 9%, we've doubled their bank account.

We've kind of beat the sofa rate by 5%.

You know, Bitcoin's returning 55%.

So if I take the 5% boost and I give it in a short duration treasury instrument to

credit investors, the other 45% goes to the equity investors.

That creates Bitcoin yield.

Wow.

OK.

I'm not into explaining to sounds even more enticing.

But you also posted that the Wall Street continues to misunderstand the strategy, continues

to undervalue the company.

Is there in your mind right now at this particular point a correct valuation?

You know, the accounting only became fair value this year.

And so I think Wall Street is undervalued, underestimated, misunderstood what's going

on in the entire crypto ecosystem.

We're now the ninth most profitable operating, most ninth most profitable company on an

operating basis on the S&P.

The number 96 in market cap, where like number 495 on a PTE basis.

So I don't think Wall Street, Craig, gets it.

We're the fourth most profitable finance company in the United States right now.

And it's pretty common to dismiss or to disparage something you're afraid of.

You don't understand.

I think that Wall Street's starting to come to grips with this new thing this year.

It will probably be a few more years before they really understand the power of digital

capital and Bitcoin as an ecosystem.

You know, you just laid out the value proposition though for people who want to buy your stock.

The journal is just a recent article talked about this 86 billion, probably more now, raised

by companies.

They want a fun to treasury like with Bitcoin that you must be flattered.

Of course speaking in a financial media, I saw one piece that said it's a fat and another

piece that wonders if it's a Ponji scheme.

What do you say, and is it a problem for you that everyone's sort of trying to mimic

what you're doing right now with a scarce resource?

You know, 100 years ago, people disparaged companies that wanted to use electricity or

gasoline in their business.

They thought that was fatish.

Again, they just don't understand it.

This is digital capital.

So if you're using traditional treasuries as capital, you're underperforming the S&P

by 10% a year.

So you're burning money on your treasury.

If you're using Bitcoin, you're outperforming the S&P by something like 40% a year.

So the more capital you raise, the more capital you hold, the faster you create shareholder

value.

It's not a problem all those companies are adopting the Bitcoin standard.

It's just like companies deciding to put internal combustion engines in their machines or

use electricity or the internet or computer semiconductors.

It's going to become the rule over time because why would you want your company to burn

10% of its capital every year when it could double or triple its capital every year?

Today a company called Verb, which I never heard of, up almost 100%, they raised the

closest 600 million for the open network or ton, for the ton coin to be used on the ton

block chain.

You know, we've got stable coin, we've got ether.

The cyberspace is broadening.

Does that change things for you?

Does that change the calculus for where your company can go?

You know, there's an explosion of innovation in the crypto economy right now and I think

telegram is offering a wall that lets you move Bitcoin and let you move stable coins

at the speed of light over that network.

So I think it has to do with the enthusiasm of the technology community and this idea

that maybe we could have a billion people that have a mobile app that moves money at

the speed of light and stores their life savings and an asset that keeps going up in value.

I think you'll see more and more of this innovation.

Now we've got a new pro innovation administration and there's going to be thousands of very interesting

ideas.

They all come down to the digital transformation of finance and the digital transformation

of capital.

Can I tell you Michael, we've been talking on and off for years now and I've always admired

your vision and the way you've stuck to this even at the times that you're on the mat.

You know, you never cried, you never whined, you said, hey, listen, this is the value proposition,

it's going to work and you're changing the entire world now.

Congratulations, Michael.

Yeah, thank you, Charles.

Always a pleasure.

Same here.