Saylor's dividend strategy expands MicroStrategy's TAM
The hosts argued that Michael Saylor's willingness to sell small amounts of Bitcoin to fund preferred share dividends expands the addressable market for MicroStrategy's debt products.
The argument
While selling Bitcoin goes against Saylor's historical 'never sell' stance, offering a yield backed by Bitcoin collateral attracts risk-averse institutional buyers. This capital can then be leveraged to acquire substantially more Bitcoin over the long term.
The thesis, stress-tested
✓ What validates it
- ✓MicroStrategy successfully issues new tranches of 'Stretch' or preferred shares
- ✓Net Bitcoin holdings on MicroStrategy's balance sheet continue to increase
▸ Risks discussed
- ▸A prolonged decline in Bitcoin's price could break the leverage and refinancing loop
- ▸Backlash from purist Bitcoin investors who oppose any selling of the underlying asset
Hear it yourself
"I mean, part of this story is, I I can tell you that my demand for AI tokens is insane. More tokens than I ever have. Oh my god. I ran out yesterday for, like, this fourth or fifth time. Fourth or fifth time, I have to buy a period of time. This year, like, last month. Okay. I am now running out. So I'm I do $50 increments. Yeah. Okay. Yeah. Yeah. I'm running out two to three times a day. Dude, my AI spent pulling out the credit cards, like, swiping it again? Well, I did my first $250 purchase to that. Because you get philanthropic, you get a bigger discount the larger you pay. Yeah. So I was like, oh, I'm no."
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