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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Let's keep this conversation

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Speaker 1: on crypto going because so called digital asset treasury firms

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Speaker 1: have announced plans to raise a combined seventy nine billion

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Speaker 1: dollars so far in twenty twenty five just for bitcoin purchases,

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Speaker 1: according to advisory firm Architect Partners. But that trend is

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Speaker 1: expanding into smaller tokens as well. And I'm pleased to

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Speaker 1: say that joining us now is Strategy Executive Chairman Michael Sailor. So, Michael,

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Speaker 1: it feels like, of course, MicroStrategy strategy as it's now known,

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Speaker 1: really started this crypto treasury company trend that we're seeing now.

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Speaker 1: I know that you broadly are supportive of seeing that,

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Speaker 1: seeing competitors come out and also raise their own crypto treasuries.

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Speaker 1: But how do you feel about the trend that now

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Speaker 1: it's moving more into alt coins, it's moving away from bitcoin.

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Speaker 1: Do you think that that's a sustainable setup now?

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Speaker 2: I still think the vast majority of the capitol flowing

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Speaker 2: in the space is flowing into bitcoin. We've gone from

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Speaker 2: about sixty companies capitalizing on bitcoin to one hundred and

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Speaker 2: sixty companies just in the past six months, So I'm

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Speaker 2: laser like focused on bitcoin. I think bitcoin is digital capital.

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Speaker 2: I think it's going to outperform the S and P

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Speaker 2: Index over the indefinite future. And I think it's the

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Speaker 2: clear global monetary commodity in the world right now. So

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Speaker 2: it's the lowest risk, highest return, most straightforward strategy if

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Speaker 2: you want to outperform the S and P and if

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Speaker 2: you want to inject vitality and performance into your balance sheet.

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Speaker 1: So it sounds like you're not concerned that perhaps the

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Speaker 1: fact that we're seeing these other digital asset treasury companies

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Speaker 1: come to the four here expand into all coins, You're

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Speaker 1: not concerned that that's going to detract attention away from

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Speaker 1: what strategy is doing.

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Speaker 2: You know, I think there's an explosion of innovation across

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Speaker 2: the entire crypto economy, and on the margin, it's really

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Speaker 2: good for everybody in the digital asset space right now.

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Speaker 2: I think the big idea is one hundred trillion dollars

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Speaker 2: plus of capital and the traditional equity capital markets and

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Speaker 2: traditional credit markets, and what we're focused on is delivering

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Speaker 2: digital asset backed equity and digital asset backed credit. And

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Speaker 2: I think those credit instruments and equity instruments are just

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Speaker 2: going to outperform the traditional fiat credit and traditional fiat

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Speaker 2: equity instruments all around, and capital is going to flow

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Speaker 2: into the digital economy due to that.

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Speaker 3: Michael, explain the assets, the unique assets to which you

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Speaker 3: offer investors access, because it's not just you know, bitcoin

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Speaker 3: treasury company, you have, you think, a unique selling point

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Speaker 3: compared to other others trying that strategy.

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Speaker 2: Yeah, the real compelling idea of a bitcoin treasury company

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Speaker 2: is we hold a huge stock of bitcoin, about seventy

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Speaker 2: four billion dollars worth of bitcoin. Bitcoin's a twenty one

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Speaker 2: year duration asset. You got to hold it for twenty

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Speaker 2: one years if you want the full potential, and it's

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Speaker 2: about fifty boll and fifty aoar. Most people don't want

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Speaker 2: that amount of volatility, even though it's got that performance,

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Speaker 2: and who wants to wagh twenty one years? So what

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Speaker 2: we've done is we've created structured bitcoin in the form

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Speaker 2: of strike STRK. We give you the bitcoin upside, a

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Speaker 2: guarantee dividend and principal protection, and that's an alternative for

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Speaker 2: people that don't want the roller coaster. We've created a

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Speaker 2: long duration senior credit instrument called STRIFE. Think of it

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Speaker 2: as a twenty one year bitcoin back bond pays about

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Speaker 2: eight and a half percent dividend yield right now for

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Speaker 2: people to just want that quarterly dividend yield and a

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Speaker 2: seniority in the capital structure. And then you've got a

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Speaker 2: high yield, long duration instrument called STRIFE. It's actually paying

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Speaker 2: like eleven and a half percent divid in yield right now,

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Speaker 2: and so that's for people that want high yield forever

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Speaker 2: and they'd rather have eleven percent quarterly than take that's guaranteed.

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Speaker 2: Then the roller coaster a bitcoin. And then the most

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Speaker 2: exciting thing we've done just a few weeks ago. It's

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Speaker 2: the biggest IPO of the year. It's called Stretch STRC,

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Speaker 2: and STRC is like a monthly bitcoin backed bill, and

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Speaker 2: so think of it as a bitcoin alternative to treasury

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Speaker 2: bills or money market funds. It's nine percent divid in

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Speaker 2: yield monthly cash pay and if you just want to

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Speaker 2: park short term cash and get paid nine percent dividends

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Speaker 2: and have it powered by bitcoin, you're not taking duration

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Speaker 2: risk on the interest rate, you're not taking the bitcoin volatility.

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Speaker 2: And that's our most successful offering to date.

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Speaker 1: Well, Michael, I do want to talk a little bit

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Speaker 1: more about your financing. You touched on it a lione

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Speaker 1: little bit. One of the other trends that you've started

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Speaker 1: is issuing convertible notes to fund your bitcoin purchases. You've

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Speaker 1: also been issuing preferred stock as well. When it comes

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Speaker 1: to just straight micro strategy shares, we know that it's

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Speaker 1: very popular with retail. We know convertible notes have been

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Speaker 1: popular with more of the Wall Street crowd. Do you

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Speaker 1: have any insight on who the end buyer of your

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Speaker 1: preferred stock is?

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Speaker 2: Well, right now, we've had really extraordinary demand from retail

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Speaker 2: are in our last offering. I mean we started with

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Speaker 2: about thirty or forty million of retail demand on the

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Speaker 2: first preferred, and then it increased the sixty million on

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Speaker 2: the second preferred, and then one hundred and twenty million

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Speaker 2: on the third preferred, and about six hundred million on

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Speaker 2: the fourth preferred, So retails off the charts. We've also

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Speaker 2: got a lot of institutional long investors people that are

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Speaker 2: holding it. Look, if you like bitcoin or if you

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Speaker 2: like mstr these are all pretty compelling for any pol

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Speaker 2: A capital you've got. And then of course a bunch

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Speaker 2: of hedge funds also got very excited about this. There's

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Speaker 2: lots of different ways to trade these against each other,

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Speaker 2: so a good mixture of institutional as well as retail

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Speaker 2: investors buying into all these preferreds.

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Speaker 1: And Michael, I'd also love to get your thoughts on

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Speaker 1: some of the other big news from today. A lot

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Speaker 1: has certainly happened on this Friday, but one of those

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Speaker 1: is what's going on in the gold market right now.

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Speaker 1: You have the Trump administration ruling that gold bars will

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Speaker 1: be subject to tariffs as well, these reciprocal tariffs, so

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Speaker 1: imports of gold will be tariffed, and that's really sending

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Speaker 1: shockwaves through the gold ecosystem. Gold and bitcoin are often

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Speaker 1: compared to one enough of their bitcoin called digital gold,

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Speaker 1: for example. I wonder if you think this has any

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Speaker 1: ripple effects positive or negative for bitcoin.

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Speaker 2: It does. Bitcoin is digital gold. That's going to accelerate

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Speaker 2: the migration of capital from physical gold to digital gold.

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Speaker 2: You know, bitcoin lives in cyber space, no tariffs in

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Speaker 2: cyber space. The big appeal of bitcoin is it's not physical,

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Speaker 2: it doesn't have weight. You can settle anywhere with anybody

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Speaker 2: in a few minutes. And so gold has always been

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Speaker 2: too heavy, too slow, you know, and you can't really

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Speaker 2: ship it across an ocean, and if you do now

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Speaker 2: you're getting terriffs. So I really think it just reminds

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Speaker 2: everybody why the digital version of gold is better than

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Speaker 2: than actual physical gold. And I think it's going to

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Speaker 2: catalyze a new wave of institutional adoption of bitcoin.

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Speaker 1: All right, Crypto is stateless. It's hard to tear if

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Speaker 1: Michael have to leave it. They're really enjoyed speaking with

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Speaker 1: you though. That is Strategy Executive Chairman Michael Saylor