We Study Billionaires - The Investor’s Podcast Network BTC228: Saylor's Bitcoin Strategy w/ Preferred Stock w/ Jesse Myers (Bitcoin Podcast)
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Apr 2, 2025 Jesse Myers, Chief Investment Officer at OnRamp and a Stanford neuroscience grad, delves into MicroStrategy’s new preferred stock strategy. He discusses how this move affects Bitcoin’s role on the company’s balance sheet. Jones offers intriguing insights into Bitcoin’s potential for financial disruption and the significance of appreciating scarcity in investments. He also addresses misconceptions about the economic landscape and speculates on a looming 'debt event horizon'. Plus, he shares his thoughts on influential figures like Elon Musk and the future of the economy.
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MicroStrategy's Bitcoin Strategy
- MicroStrategy's goal is Bitcoin yield, aiming to raise capital to buy Bitcoin accretively.
- They utilize convertible notes and preferred stock offerings (STRK and STRF) to achieve this.
Targeting the Bond Market
- MicroStrategy's preferred stock offerings (Strike and Strife) target the $300 trillion bond market.
- They offer higher yields (e.g., 11.8% for Strife) than typical fixed-income investments.
Issuing Preferred Stock
- MicroStrategy can issue more preferred stock to raise cash and increase dividend expenses.
- They can issue up to $21 billion in preferred stock, using the proceeds to buy more Bitcoin.