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It's June 4th, JLD here and welcome to
00:00:02
MSTR. Today in this show, we talk about
00:00:05
Stride entering the room. We go over
00:00:07
Strategy's full capital stack and an
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impressive one it is. Also, Strife and
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Stride will flip US treasuries,
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specifically the 30-year thinks some
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very smart people. Also, who the heck is
00:00:22
short 10 million shares of MSTR? Uh, we
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take a look at that. Um, plus some epic
00:00:28
video clips. you're not going to want to
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miss. This video is not financial
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advice, but please do comment below.
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Just comment for support. Let me know
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where you're watching from. By the way,
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we haven't been there for a while where
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people are shouting out where they're
00:00:40
watching from. I love seeing all over
00:00:42
the world. Whether you're, you know,
00:00:43
overseas, whether you're in North
00:00:45
America, the Eastern Hemisphere, where
00:00:48
are you watching from? Just go ahead
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post it in the comments below and let's
00:00:53
dive on in. Okay, today's first post is
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coming at you from the Bitcoin therapist
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who just wants us to know this is the
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most bullish I've been on MSTR in six
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months. Everything is falling perfectly
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into place. Sailor is the master
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architect of the speculative attack on
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the US dollar and I could not agree
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more. I mean, Stride is just the latest
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in this perfectly orchestrated takeover
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of the financial markets. I love it. So,
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let's dive more into that specifically.
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Jeff wants us to know that the most
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liquid fixed income capital stack in the
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world is being created right in front of
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our eyes, backed by the most powerful
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asset on the planet, history in the
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making. One side of the fixed income
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market is mispriced, and it's likely not
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strategies. There will be a landslide of
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capital when the market chases the new
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equilibrium. And by the way, I am
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properly placed for this landslide. Are
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you? I'm just at the bottom of that hill
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saying come to daddy. Chris says this is
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strategies capital stack a blueprint of
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how MSTR finances its Bitcoin backed
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empire. So first is convertible notes.
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Convertible notes are debt that can be
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converted into equity. They come with
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downside protection but limited upside.
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They are senior in the capital stack and
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get paid first in a liquidation event.
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And then there's Strife. Strife is
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preferred equity. It comes with limited
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downside protection but no upside. It is
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junior to convertible nodes but senior
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to strike in a liquidation event. And
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then their strike is a preferred equity
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comes with limited downside protection
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and upside potential. It is junior to
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strike but senior to stride in a
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liquidation event. And then of course
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there's stride. Stride is preferred
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equity. It comes with limited downside
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protection but no upside. It is junior
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to strike but senior to common equity in
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a liquidation event. And then the common
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equity. The common equity is pure
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ownership. It comes with no downside
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protection but unlimited upside
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potential. It is last in the liquidation
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event line. Every layer of the strategy,
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Capital Stack is designed to appeal to a
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different pool of investors based on
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their volatility, risk, and return
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goals. Optimize capital efficiency and
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maximize back uh Bitcoin accumulation.
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So again, you have debt, which is the
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convertible notes, the preferred strike,
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strike, strike, and then common equity.
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And I think we're going to be adding a
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few more to uh to this layer right here.
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But only time will tell. Who knows what
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Michael Sailor's cooking up, but
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something tells me he's not done. And
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actually, the question should be begged,
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should he ever be done? Because, man, he
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is just rocking and rolling. Um, Matt
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wants to know that Sailor is pulling
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forward hyper Bitcoinization by
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gigiphening capital from the fixed
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income market, and people are still
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clowning on him. It's a buy now pay
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later structure, but for institutional
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capital, and they're buying Bitcoin.
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It's an incredible de deal for
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shareholders. And this individual, I
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mean, he says, "Dollute commons to fund
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a dividend for preferred sounds like a
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crap deal with shareholders. There's
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just so much incompetence and
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cluelessness and absolute
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just it's just what is it? What is the
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word? It's just these individuals do no
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research. They just open their mouth and
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crap spews out at a ridiculous rate.
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This is why I follow 22 people because
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almost everybody else that opens their
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mouth on X, I honestly do not care what
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they have to say. So why am I having to
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see it? And Matt just pointed that out
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beautifully here. Adrian says, "Stack to
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accelerate Bitcoin accumulation link."
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This is a great article that was uh
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written in the Bitcoin magazine about
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how Strategy built their capital stack
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to accelerate Bitcoin accumulation. Um I
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will have the link to this in the show
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notes below. And this is the article
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right here. It's a Bitcoin magazine. How
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strategy built their capital stack to
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accelerate Bitcoin accumulation. And
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they just go through everything. What is
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a capital stack? The stack order by
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order by priority convertible notes
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strife strike stride. So they cover it
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all. Then the common equity and then the
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big picture seller is targeting the
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fixed income market. And then why it
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matters. The key takeaways, this is what
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I think is important. Every layer
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matches a specific investor need from
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lowrisk debt to speculative yield.
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Capital uh flows in, bitcoin stays put,
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preserving treasury position while
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scaling. And then no single instrument
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dominates. The stack is diversified by
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design and control is retained. Most
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securities are non-voting
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non-convertible. Sailor and his strategy
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are in his control are in Fong Le's
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control are in the control of the team
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at strategy. And that's just where we
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want it in my opinion. Uh Jeff says,
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"Strife will flip the 30-year US
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Treasury. Stride will flip the 30-year
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US Treasury. They're measuring sticks
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for the health of Bitcoin versus fiat."
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And I can tell you in my opinion,
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Bitcoin is unbelievably healthy and fiat
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is not. And then the Bitcoin therapist
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says, "Just going to leave this here."
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And it was on a post from Jeff Walton
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that said, "Lord have mercy. MSTY is
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short
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9.9 million MSTR shares and long
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250,000. This puppy may cause a squeeze.
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And of course, he's talking and
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referring to a potential short squeeze,
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which would rocket MSTR to the upside.
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Now, we have some great video clips
00:06:13
you're not going to want to miss when we
00:06:15
get back from thanking our sponsors.
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00:08:32
Good point and and here's the way I
00:08:34
would say it. The difference between
00:08:39
money and and speculation is if it's
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money then the largest holders are
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buying more and if it's speculation the
00:08:50
largest holders are selling. So the real
00:08:53
issue is are you are the hodlers buying
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or are they selling? I'll give you
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example of great asset classes that are
00:09:01
money. Um Apple stock is money. Apple is
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buying more. And a lot of people that
00:09:07
own Apple stock will buy more.
00:09:09
Um New York City real estate or London
00:09:12
real estate or Palm Beach real estate,
00:09:16
luxury real estate is money because if
00:09:19
you look at wealthy people, they're not
00:09:21
selling. There's no one bragging about
00:09:23
how they sold all their nice places in
00:09:25
Palm Beach, New York, and London.
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They're buying more, right? Uh if you if
00:09:30
you've ever met a rich family that has
00:09:33
real estate holdings, they don't sit
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around saying, "Yeah, we're going to
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diversify and we're going to sell next
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year. We're going to get rid of the
00:09:39
entire portfolio at a huge profit over
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10 years." What they say is, "I'm
00:09:43
looking forward to the next deal. We're
00:09:45
going to acquire this building or we're
00:09:47
going to we're going to buy this other
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thing." Right? They buy and they hold.
00:09:51
and they typically buy and hold to give
00:09:53
to their children's
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children, right? The same is true with
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uh with art. If it's good art,
00:10:01
collectors, you know, Frick, Andrew
00:10:04
Melon, they didn't buy art to flip the
00:10:07
art, right? They're not speculars. Oh, I
00:10:09
bought a Picasso so I could sell the
00:10:11
Picasso, right? They wanted to buy them
00:10:13
all. That's why they call them
00:10:14
collectors. So if something is deemed to
00:10:18
be really valuable, you bought a billion
00:10:20
dollars of it and your goal is to buy
00:10:23
another billion dollars of it. And so if
00:10:25
you think about all these things, which
00:10:27
thing in the crypto ecosystem is that,
00:10:30
right? Bitcoin is that, right? I bought
00:10:33
a bunch of Bitcoin, my goal is to buy
00:10:35
more Bitcoin, right? It's a it's just a
00:10:38
very simple acid test. Do you have an
00:10:40
exit strategy or is that the exit
00:10:43
strategy?
00:10:45
Every financial revolution has a
00:10:47
breakthrough instrument. Strategy has
00:10:51
two strike and strife. Now if you don't
00:10:55
understand these two innovations then
00:10:57
you won't understand where strategy is
00:11:00
heading. So in this video I want to
00:11:02
explain why strike and strife are the
00:11:06
engines to strategies future success.
00:11:10
Now first let's understand the strategy
00:11:12
playbook. If you haven't already, I
00:11:14
invite you to watch the video where I
00:11:16
unpack the playbook in detail. Um, I'll
00:11:19
leave a link to that video in the
00:11:22
description if you're watching on
00:11:23
YouTube. But in a nutshell, it is this.
00:11:26
Michael Sailor wants to acquire as much
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Bitcoin as humanly possible. The best
00:11:31
way to do that is to raise capital. The
00:11:34
best way to do that is to create
00:11:36
financial products that appeal to the
00:11:38
entire investor spectrum because
00:11:40
different investors are optimizing for
00:11:43
different outcomes based on their
00:11:45
volatility, risk, and return goals. Now,
00:11:48
not all products are created equal
00:11:51
because each product has a different
00:11:53
level of Bitcoin torque, which is
00:11:55
essentially return on capital and so
00:11:58
each product has a different degree of
00:12:01
accretion. So, for example, convertible
00:12:03
bonds have more Bitcoin talk than the
00:12:06
ATM. Strike has more Bitcoin talk than
00:12:09
convertible bonds. And Strife has more
00:12:12
Bitcoin talk than Strike. So, that's the
00:12:15
business model in a nutshell. Now, we've
00:12:17
heard Michael Sailor explicitly say that
00:12:20
he wants Strategy to become the Amazon
00:12:23
of the fixed income market. Two months
00:12:26
ago in an interview with the Economic
00:12:28
Club of New York, we also heard Michael
00:12:31
Sailor state explicitly that he wanted
00:12:35
to capture 1% of the fixed income
00:12:38
market. Here's a clip. Look, we're
00:12:40
tapping into the fixed income markets.
00:12:43
There's what 300 trillion of fixed
00:12:45
income. So, I want 1% of it. So, like
00:12:48
could I ra could I raise a hundred
00:12:50
billion 200 billion dollars of capital?
00:12:52
Sure, I could. Now, at this moment in
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time, what products do you think Sailor
00:12:58
is going to use to tap into the fixed
00:13:01
income market? Of course, it's Strike
00:13:04
and Strife. Now, let's unpack both
00:13:07
products. Strike is a convertible
00:13:11
preferred stock that pays an annual
00:13:13
dividends of 8% and comes with the
00:13:16
option to convert to common stock at
00:13:18
$1,000. So in other words, if or rather
00:13:21
when MSTR hits $1,000, holders of Strike
00:13:25
have the option not the obligation to
00:13:27
convert their shares to common stock at
00:13:30
a ratio of 10 to1. So for every 10
00:13:33
shares of Strike you have, you are
00:13:35
entitled to one share of MSTR.
00:13:40
Strife on the other hand is a perpetual
00:13:43
preferred stock that pays an annual
00:13:45
dividends of 10% but with no option to
00:13:48
convert. So with that in mind, it is
00:13:51
clear that Strike is going to be used to
00:13:55
tap into the convertible bond market.
00:13:58
Strife is going to be used to tap into
00:14:01
the broader fixed income market. Now the
00:14:04
beauty my friends the beauty of these
00:14:08
products is that they resemble
00:14:11
traditional bonds but they are
00:14:14
structured as preferred equity which
00:14:17
allows strategy to raise capital without
00:14:20
increasing debt. Now what does all this
00:14:23
mean for equity holders? Well, up until
00:14:25
this point, Strategy has primarily been
00:14:27
using the ATM to raise capital to buy
00:14:30
Bitcoin. However, remember Strike and
00:14:34
Strife are more accreative than the ATM.
00:14:36
So, the more demand strategy that
00:14:39
strategy is able to create for these
00:14:41
products for Strike and Strife, the less
00:14:44
they'll need to use the ATM and so the
00:14:46
more accreative Bitcoin purchases will
00:14:49
be. And so to the degree that strategy
00:14:53
succeeds at this, to the degree that
00:14:55
strategy is able to generate more and
00:14:58
more demand for these products is to the
00:15:00
degree that it will determine the
00:15:02
performance of the company over the
00:15:05
coming years. Now let me
00:15:07
emphasize we're not talking about a
00:15:09
small innovation here. We are talking
00:15:11
about
00:15:12
completely transforming global finance
00:15:15
and the capital markets. And I say that
00:15:18
as a word of caution because it is going
00:15:22
to take time to build demand for these
00:15:25
products. Which is why if you're an
00:15:27
equity shareholder, you need to have
00:15:29
patience. You have to expand your time
00:15:32
horizon and think a minimum of 3 to 5
00:15:37
years out. So in
00:15:40
summary, Michael Sailor's goal is to
00:15:42
acquire as much Bitcoin as humanly
00:15:45
possible. to do that. He wants to tap
00:15:47
into the fixed income market to raise
00:15:49
capital and use it to buy Bitcoin. To
00:15:52
tap into the fixed income market, he's
00:15:55
going to use Strike and Strife as
00:15:57
vehicles to attract that capital. And
00:16:02
that is why Strike and Strife aren't
00:16:05
just some arbitrary products that
00:16:08
Strategy has created. They are literally
00:16:11
the engines to Strategy's future
00:16:14
success. And there you have it, another
00:16:16
episode of MSTR today. And here's my
00:16:19
receipt from yesterday. I bought a
00:16:20
0.5555 share. Nice of MSTR at
00:16:24
$379. Um, so stacked $210 worth of MSTR.
00:16:30
Got me just about half a share as I buy
00:16:33
$210 of MSTR every trading day of
00:16:39
2025. Um, I'm going to go ahead this
00:16:41
coming Sunday and share my entire DCA
00:16:43
portfolio. But my last one I was up
00:16:44
about 14%. So we'll see where I'm at
00:16:47
this coming Sunday for sure. Now listen,
00:16:51
we know this because it's true. You're
00:16:54
the average of the five people you spend
00:16:56
the most time with. There are just so
00:16:59
many unintelligent people out there
00:17:01
posting things on X that so many people
00:17:05
take just at their word for I don't know
00:17:07
what reason because they have 72,000
00:17:09
fake followers or something along those
00:17:11
lines.
00:17:13
It's just ludicrous. I follow 22 people.
00:17:17
Those are the only comments that I see
00:17:19
on my ex feed because guess what? I
00:17:22
don't need all of these incredible
00:17:25
geniuses who are broke on their parents'
00:17:27
couch giving me financial advice. I take
00:17:30
financial advice from very select people
00:17:32
and you should too because you are the
00:17:34
average of the five people that you
00:17:37
spend the most time with. So, thank you
00:17:38
for these 15 minutes you spent here with
00:17:40
me today. I believe that Michael Sailor
00:17:42
is the financial genius of our
00:17:44
generation. Nothing's going to dissuade
00:17:46
me from that until MSTR, I should say,
00:17:49
unless MSTR goes to absolute zero, which
00:17:52
I just cannot imagine. I believe the
00:17:54
strategy is going to become the biggest
00:17:56
company in the world, bar none. Period.
00:17:59
End of story. I believe it's inevitable.
00:18:02
That's inevitable with a capital Bitcoin
00:18:05
B. Just my thoughts, just my belief. And
00:18:08
uh we'll see what time we uh what time
00:18:10
we'll share with that truth or falsity.
00:18:14
But like Michael Sailor loves to say, no
00:18:16
matter what, there is no second best.
00:18:20
What's the second best? There is no
00:18:21
second best.
