Did Michael Saylor Accidentally Admit His BIGGEST Mistake… | EP 1531

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Michael Saylor made an announcement this morning that may confirm he made a huge mistake and he's trying to fix it. He's been getting in a lot of heat recently, and this latest decision could potentially throw even more gas on that fire. But what does this mean for MSTR shareholders? And of course, what does this mean for Bitcoin in general? We will get into it. So obviously you guys know, Saylor has been in the news for the last two, three weeks, ever since he sold 32 Bitcoin.
It really has been sort of, I would say, maybe a dumpster fire, maybe. Actually, as Nico pointed out to me earlier, it really started with the Danny Knowles podcast that was like months ago. But anyways, anyways, let's get into the latest decision. So obviously, on first read, it's just another Saylor buy, right? We're seeing on Twitter, Saylor did another buy. He did the dots, more dots equals more better. But he announced that strategy increased its US dollar reserves by 300 million to 1.4 billion dollars, and plans to continue replenishing it to support the credit quality of its digital credit securities or the stretch product. He also announced that they acquired 520 Bitcoin for $35 million, increasing their Bitcoin holdings to 847,363.
So you're probably reading this and being like, FD, what are we talking about here? Well, it's how he funded those USD reserves, which is leading back to the controversy we were covering last week. So to fund these reserves, Saylor did an at-the-market sales of the MSTR and sold 2,714,839 MSTR shares for approximately that $300 million. Now, as you know, there's been a huge controversy recently on the Bitcoin per shares. It's actually two controversies in regards to the stretch product. And I will cover where the stretch prices hasn't fully rebounded yet, but it looks like these decisions by strategy are in fact, just trying to protect the digital credit narrative. And of course, as we all know, narratives drive kind of the liquidity and the price currently. And like I said last week when we were covering this, and you guys did yell at me a little bit.
Like I said last week, it's not so much that the math is bad. It's not so much that this product is going to blow up per se. It's really more of a confidence issue. And again, in the last week, Saylor or strategy, Saylor and strategy, I'm going to use those interchangeable. When I say Saylor, I mean strategy and vice versa. He's been in three controversies in the last week. Again, sold some Bitcoin. There is the Bitcoin per share kind of argument, controversy, and then of course, the stretch de-pegging as everyone has been calling it. Well, we're going back to number two. We're back to the Bitcoin per share conversation. Now, I forget what the number was last week, but you can see here Bitcoin per share in SATS is currently at 218,046. If I remember correctly, last week when we were covering this is around 220 So the Bitcoin per share is continuing to go down at least week to week, though we've heard Fong Li, the CEO of Strategy, basically come out here and say, hey, look, we're not necessarily thinking in terms of week to week. We're thinking in terms of year to year. And then of course, four or five, 10 years down the line. But the Bitcoin per share has continued to go down in the last weeks to protect this stretch product. Now, what is interesting, as you can see, last week we were covering the idea that it did sound like Saylor was saying, hey, look, we have 847 plus thousand coins. We're totally willing to use our entire stack to protect the dividend payments. And that would equal this 32 years of dividend coverage in Bitcoin terms. Basically saying, if we sold all of our Bitcoin, we can cover these dividend payments for 32 years. Everyone's hearing this and it's like, yo, the buyer of last resort is basically now telling us that he's gonna dump his Bitcoin to protect this digital credit product. This is not good. Well, last week, when we were covering the story, the big controversy was Saylor had about $2 billion on hand in cash.
They used about $1.5 billion to cover, or sorry, to pay back their bond converts for I believe it was 2028
Basically took off some debt on the books and it dwindled their USD reserves to about seven months. From two years to seven months. And I think that was the catalyst to really spook the market. I think that's why the stretch product went so low. Again, it's not a peg, it's just a par number. So a lot of people, as I was covering last week, are thinking of the stretch product like a stable coin, that oh man, it de-pegged from $100, it's completely over. It's not really how the product works. It did get to its lowest point ever of around $82.