ever get the feeling the world of finance,
like it's changing faster than a Bitcoin price ticker.
We're right there with you.
Today's deep dive, we're looking at this company,
MicroStrategy, and they are going all in on Bitcoin
in a way that is causing ripples
even outside the crypto world.
I mean, it's big.
Yeah, and what's really interesting here is
this isn't some brand new FinTech startup, you know?
MicroStrategy has been around since the 80s,
mostly known for software.
Right, totally different world.
Right, but then their CEO, Michael Saylor,
gets this idea, this conviction,
that Bitcoin, it's the future of value.
So they jump in, both feet.
Okay, hold on, we gotta talk about this.
Michael Saylor, who is this guy?
Is he like a financial visionary
or is this like a massive gamble?
Well, his argument is basically that traditional assets,
all that stuff, stocks, bonds, real estate even,
it's getting less efficient in this new digital world.
Yeah, interesting.
They're tied to these old systems, right?
And they're vulnerable to inflation,
controlled by these big institutions.
Saylor, he's saying Bitcoin is the answer.
So he's not just like tweeting about it,
he decides to put his company's money where his mouth is.
Exactly.
So how much are we even talking about here?
Get ready for this.
MicroStrategy owns, right now, roughly 252,220 Bitcoins.
Whoa, whoa, okay, 252,220 Bitcoins.
I mean, that's not dabbling, that's a statement.
That's a statement, yeah.
But how does a company even get that much Bitcoin?
I mean, did they like find Satoshi Nakamoto's hard drive
or something?
Well, it's actually this whole multi-layered strategy,
and this is where it gets even more interesting, I think.
Okay, lay it on me.
So back in 2020, they start by using $250 million
of their cash reserves to buy Bitcoin.
Okay, so far so good.
But, and this is key, they didn't stop there.
Let me guess, they raided the company Piggy Bank,
the snack fund.
Not quite.
They started using their existing equity to buy even more.
Think about it, they're taking chunks
of the company's own value
and directly trading it for Bitcoin.
Talk about putting your money where your mouth is.
But, I mean, even still,
that doesn't explain how they got that much Bitcoin.
Did they start accepting Bitcoin payments
for their software or?
No, that's the really fascinating part.
What they did was start issuing corporate bonds
and new equity to raise even more money.
And they used that money to buy more Bitcoin.
It's like this Bitcoin buying machine
fueled by Wall Street itself.
It's a bold move, you gotta give them that.
And it's different fundamentally
from something like a Bitcoin ETS.
MicroStrategy isn't just holding Bitcoin
on behalf of investors.
They're building a company where owning their stock
is basically like owning a little piece
of their massive Bitcoin stash.
Right, almost like, so if I buy their stock,
it's like I'm buying Bitcoin without actually buying Bitcoin.
Kind of, yeah.
You're essentially hitching your wagon
to their Bitcoin bet, which means.
That risk high reward.
Exactly, and that brings us to this whole
infinite money glitch thing.
Yeah.
Okay, infinite money glitch.
That sounds less like a financial strategy
and more like something you'd hear a 12 year old screaming
while playing, I don't know, Roblox or something.
Yeah, you're not wrong.
It's definitely one of those catchy phrases
that kind of captures the too good to be true vibe
of this whole thing.
Reality's a bit more complicated.
Way more, yeah.
Okay, so like, break it down for me.
What is this glitch everyone's talking about?
So the idea, right, is MicroStrategy takes out
these low interest loans, these corporate bonds.
They use that borrowed money to buy up a bunch of Bitcoin.
Bitcoin goes up, which so far it mostly has,
and boom, they've made a profit.
Hopefully way more than the interest they owe.
Then they just like do it again and again.
Hence the infinite money part.
I gotta say, it sounds tempting.
Right.
I guess it's not quite that simple in reality.
No, of course not.
And Saylor, he's got this whole counter argument.
Lay it on me.
He basically pushes back on this glitch label, right?
He says it's not about exploiting some loophole
in the system, it's about a fundamental shift
in like how capital markets work in a digital age.
Right, I'm listening.
He uses this analogy, it's about thermodynamics,
which sounds complicated, but.
Yeah, but go on.
It makes sense actually.
So picture this.
Traditional assets, right?
Stocks, bonds, the whole shebang, they're like steam.
Steam.
Yeah, high energy, kind of chaotic,
and honestly not always that efficient, right?
Okay.
Now picture Bitcoin as like ice.
Lower energy, very structured,
and potentially a much more efficient way
to store and transfer value.
Okay, okay, so he's saying Bitcoin is like
the future of efficient value,
but like for me, for the average person,
why does this even matter?
That's a million dollar question, right?
And that's what makes MicroStrategy so interesting,
because they've essentially made their stock
a bet on Bitcoin.
So it's like MicroStrategy is saying,
hey, you want in on this whole Bitcoin thing,
here's a way to do it, kinda.
You know, sort of a way to dip your toes in
without diving head first, maybe.
Like dairy.
But.
There's always a but.
There's always a but with Bitcoin.
Right.
And it's a big one, because you know,
when Bitcoin's price goes up,
their stock, it can skyrocket,
but when Bitcoin dips.
Like, out below.
Yeah, it can be a wild ride down.
High risk, high reward, right.
It's like the tagline of the whole crypto world.
But I mean, beyond the whole stock market thing,
what does all this mean?
Are we like, actually watching companies change
how they think about money?
That's the real question, isn't it?
Honestly, the answer is, we don't really know yet.
But MicroStrategy, they're definitely shaking things up.
How so?
Just the sheer amount of Bitcoin they're buying,
it impacts the market.
Supply and demand, the oldest rule in the book.
Exactly.
And they're not just buying it to, you know,
flip it the next day.
They're holding it, which takes it out of circulation.
Like they're this, I don't know,
this whale in the Bitcoin ocean,
and everyone's watching to see what they'll do next.
It's a good analogy.
Yeah.
But I think even more important is they're making it,
well, less weird for these big institutions
to think about Bitcoin.
Right, hey, everyone else is doing it.
Exactly.
If this, you know, this publicly traded company
can just hold Bitcoin as part of their,
whatever their assets, why not everybody else?
Suddenly, it's not this crazy fringe idea.
It's just another option.
Like they're dragging Bitcoin
towards like Wall Street respectability or something.
Yeah.
And then there's the whole,
the regulatory side of all this.
Governments, central banks,
they're all watching this very, very closely.
What they decide to do about it or not do,
it's a big deal for all of us.
It's a high stakes game for sure.
But okay, let's cut to the chase.
Is this whole micro strategy thing, is it sustainable?
Can they actually keep this up
or are they like one Bitcoin crash away from total disaster?
Yeah, it's the multi-billion dollar question, right?
And nobody knows for sure.
I mean, if Bitcoin really does become
what Saylor thinks it will,
some globally recognized store value
and the price keeps going up.
Micro strategy is living all the way to the bank.
Exactly, but.
There's always a but.
Always a but.
Bitcoin, it's volatile.
We all know that, right?
Yeah.
It's a new technology relatively speaking.
So there's risk, big risk.
I mean, who knows?
Some massive security breach,
some new regulations that kill the whole thing.
Poof, it could all go up in smoke.
Okay, so what's the takeaway for our listener
who's been with us on this wild ride?
I think the big thing is
we're in this really interesting moment.
This transition period in the history of finance
and what micro strategy is doing,
it shows how blurry the lines are getting
between the old world of finance
and this new world of digital assets.
So whether Saylor and micro strategy are geniuses or crazy.
Or a little of both.
Well, they're shaking things up.
Big time.
And that's what makes this whole thing
so fascinating to watch.
Definitely.
And this deep dive was just a quick look.
If you wanna really understand what's going on,
well, you gotta keep learning, right?
Exactly, dive into the world of Bitcoin,
blockchain, all of it.
It might seem complicated, but hey, who knows?
Maybe your next deep dive will be on some company
that followed micro strategy's lead.
Or went in a completely different direction.
There are so many possibilities.
That's the beauty of it all.
The future of money, it's out there waiting to be discovered.