BREAKING: Michael Saylor is ABOUT to SELL 21,000 Bitcoin?! (it's happening) | EP 1536

**Optimistfields** (0:02)
Michael Saylor made a huge announcement this morning that's left the internet divided. They've increased their cash positions to over $2.5 billion and even foreshadowed a 21,000 Bitcoin sale, at least at today's prices. And believe it or not, they are calling this their quote Bitcoin monetization program. Now, I think the real question here for all of us is, can Bitcoin survive when one of its biggest holders is dumping tens of thousands of coins on the open market?
That's probably the real question. I think that short of it is it will, but I'll break down all the details. So whether you hold Bitcoin or MSTR, we do need to understand Michael's latest announcement or strategy's latest announcement. I think it's making some big moves, like it's making some big admittances here. He finally admitted some things. All right. So before I get into it and give you my breakdown of it, let me just get you to the source material as quickly as possible. So here we have the strategy tweet this morning.
Quote, strategy announces a digital credit capital framework designed to strengthen digital credit, enhance liquidity and preserve long term Bitcoin exposure while supporting long term value creation. Sounds good, right? Okay. So strategy increased its US dollar reserves to 2.55 billion, representing 17.4 months of dividend coverage. The USD reserve may be used only for dividends and interest expense and will be maintained at a minimum of 12 months. Now, this is one of the big contentions that we've been talking about on this show since, what, two weeks ago, when... Actually, it was a little longer ago, where Saylor did a $1.5 billion bond buyback of the 20-28 bonds, I believe it was, and it dwindled their cash reserves to 7 months. And that was the initial spark that spooked the market, that really got everyone, I think, a little nervous about what did Saylor do? What is strategy done? Did they finally make a mistake? Did they make a misstep and blew up STRC? We saw it go to, the price of STRC go to about $75.
It did kind of, you know, pull...
Wow, I'm blanking. Go back up a little bit here. And as we've seen in the last week or so, Saylor, or again, every time I say Saylor, I'm talking strategy, guys, forgive me. We saw them increase their cash reserves to 10 months last week. Now they're at 17 months. And now they have committed to holding at minimum a year's worth of dividend payments. So on the surface of this strategy has listened to the market. It realized that they spooked the market by some of their moves and they are course correcting. So if you're an MSTR stretch holder right now, you're probably on the, this is a good move. And I will kind of give you my breakdown of the math and what I think is actually going on. Obviously, I'm not the biggest Bitcoin treasury guy. I don't understand all the intricacies of it. I'm a spot Bitcoin guy. I keep it simple, stupid. And that's why I hold Bitcoin. I do what Saylor does, which is just buy Bitcoin. I don't buy the stocks. I don't buy the tickers of companies that buy Bitcoin.
I just buy the Bitcoin, okay? Anyways, going further, the stretch dividend rate has been increased by 50 bips to 12% effective for the record dates in July, 2026 We will continue to evaluate the rate monthly. Our corporate objective is for STRC to trade over time at 99 to $100.
Strategy has established a repurchase program for up to $1 billion of our digital credit securities and up to $1 billion of MSTR. This will create flexibility to accretively buy back securities during market dislocations. Repurchases will not be funded from the USD Reserve. That is another point of contention that everyone was talking about last week is, hey, is strategy diluting the common MSTR shareholders?
And there was a lot of back and forth on Twitter where it did seem like Saylor was, for lack of better terms, and don't hate me, guys, I know you guys were yelling at me last week saying, Opti, I can't believe you're funding Saylor, like this is a bad look. The big conversation was, it did seem like Saylor was gaslighting in terms of diluting the MSTR shareholders. Well, again, course correct on that. They basically said, Hey, we will buy back a billion dollars of MSTR when it looks very cheap, which obviously is going to be accretive to you that holds the MSTR stock. So he made two moves, two course correction moves here, which is one, they're going to be holding a lot more cash reserves to pay back the dividend. That's what everyone was concerned about. That was, I think was the initial variable that caused the tumble in stretch. Now, of course, they also address the common dilution, quote, idea of the MSTR stock shareholders. So, you know, on the surface again, and actually it's probably a little deeper than just the surface, they're listening to the market. They are actively doing what Fong Li was saying the other day. He's like, look, we make moves, we listen to the market, but we're also thinking in long terms here, longer time frames than just two months a week, et cetera, et cetera. He's like, we're thinking five to six years down the line. And for better or worse, if you are an MSTR holder or STRC holder, you're probably feeling a lot better this week than you were the previous two weeks, because it doesn't seem like strategy is making moves that is going to directly destroy shareholder value. Yes, they made some moves that kind of spooked the market, but now they are listening to the feedback. Now, this is probably where a lot of the hot water is coming from is this tweet here. Strategy has established a Bitcoin monetization program under which they may sell Bitcoin to fund our USD reserves. It is capped at one and a quarter billion dollars, so they won't be able to sell more than one and a quarter billion dollars to beef up those USD reserves. It will be used to fund their dividends and interest expense, and will be used to repurchases of digital credit securities and MSTR under our repurchase program. So part of that billion dollars to make sure that they're not diluting the MSTR shareholders will be funded by selling some of their Bitcoin. So you're starting to see the mechanics of where this is going. Now, with $2.55 billion of USD reserves and $1.25 billion of Bitcoin monetization capacity for reserve building, Strategy has $3.8 billion of dividend coverage representing 25.9 months. Now that month number is, I think, huge. Because before two weeks ago, before they dwindled their cash reserves to seven months of repayment, dividend repayments available, they were sitting around that two year mark, that 24 mark. And that was what the market felt comfortable. That number, I think, it's not a coincidence that they're gonna hold reserves and sell a little Bitcoin to get back to two years of reserves for the stretch dividend product. So again, it seems like that's what the market wants. They want two years of cushion for the STRC payments. That's kind of what's making the market feel a little less spook about all this stuff. Now from a, I think, a narrative perspective, this might be where a lot of the damage is coming from. Again, I've been telling you guys, I don't think it's a math problem with MSTR with strategy. I don't think the math isn't math-ing. I think they are in fact doing what we've been saying for a while. They are doing financial engineering with Bitcoin. And they did test the market. This is also a bear market. So they're being stress test as well. The stretch product isn't that old. And you know, I wouldn't say they made a misstep. I think they made a move and being a little more less cynical. Well, actually, maybe it's the cynical view. The market misread what the moves were. It spooked everyone. We saw a crash.