Michael Saylor Did It & Bitcoin’s about to Pump! (Here's Why)

**Ran Neuner** (0:00)
All right, so he was teasing about it the whole weekend, and now he actually finally did it. So on the weekend, Saylor was teasing, he said, we're gonna need more charts. Now that's different from his normal Sunday tweets, because in the normal Sunday tweets, what he says is, we're gonna need more dots, or the dots look good. Here he says, we need more charts. And what he was hinting at, was he was hinting at not another Bitcoin purchase, but something else. And that's exactly what he announced today. So if you look at what he actually did today, they raised, Strategy raised $1.15 billion, and they did this by selling MSTR. And they did this without buying any Bitcoin. So all they did with the money was that they increased their reserve to be able to pay the dividend to $2.55 billion, which then increases it from the 10 months that he had previously to 17.4 months of dividend coverage. Now, if you followed our debate here on Friday or on Sunday, when we did a debate with Vinnie Lingham and a couple of others, one of the things that we said here is that he shouldn't buy any more Bitcoin. He should just sit on his hands and do nothing. I guess that this was something which was very close to that. He sold MSDR and he sold MSDR, I would say right in the nick of time. The reason why I say he sold MSDR right in the nick of time. If you look at the strategy dashboard, what you can see is that the strategy MNAV is exactly at one, or just under one, right? And that means that he's selling strategy shares, MicroStrategy shares, at the same value as the underlying Bitcoin. So had he waited for this to go further down, and he had sold those MicroStrategy shares to fund this dividend, he would have diluted the MicroStrategy shareholders. Here what he did was he actually sold it exactly at an MNAV of one. So you could say in the nick of time, he went and sold a whole lot of MSDR shares. He built his cash reserve up to 2.55 billion, which means that now he's got 17.4 months of dividend cover. He can basically sit on his hands and do nothing for the next 17.4 months, which is a year and a half. And that would effectively, he would have enough dividend cover ratio. And the effect of that is quite good. And the reason why the effect is quite good is because what he's basically done now, he said to the market, look, I can do nothing now for 17 and a half months. I did it without really diluting my MicroStrategy shareholders. I'll show you why I say really in a few seconds, but I can do this without diluting my MicroStrategy shareholders even further. I don't know if to do anything for the next 17.4 months, except sit back and wait for Bitcoin to recover. And that's exactly what happened when he made the announcement. As you can see, strategy is up 3%.
SDRC is up at $81. It was at $71.26 before the weekend actually started. And even Bitcoin, if you look at the Bitcoin chart, when this happened, we had a slight spike in the price of Bitcoin, which shows you that some of the reason why Bitcoin is actually down is because the market is actually worried about Saylor. So you can actually see that when Saylor actually announced that over this, the one hour chart, we actually spiked to $60,700. We have come down now because I think the other forces are at play here, right? But this just shows you that a lot of the Bitcoin price being suppressed is people worried about Saylor and Saylor's position. And so what he actually did was he actually did a more responsible move, if you want to call it that. And as I think Vinnie would say, because he called Michael Saylor a narcissist, you can maybe say a less narcissistic move, a more responsible move. And what he actually did was he sold MSTR shares. He sold them at an MNAV of one exactly. And he raised enough money to pay 17.4 months of dividend cover ratio. Now the market must just chill, because MicroStrategy can literally sit here for a year and a half and do nothing.
And they would still be fine. And so the whole fad around MicroStrategy not being able to pay the dividends, I think that will subside and that will effectively get out the way and let us continue with the market forces. What also, what Saylor also announced, which I think is maybe more important is this part over here, which is Strategy announces a digital credit framework designed to strengthen the digital credit, enhance liquidity and preserve long term Bitcoin exposure. Now, effectively, what they're saying here is that they have now created a framework that says Strategy has established a repurchase program for up to a billion dollars worth of our own digital securities and up to a billion dollars of MSDR. So they've got a framework now where they can sell Bitcoin and they can use the proceeds of the Bitcoin to buy either STRC or MSDR. And I remember, I mean, it was implied, but they never had the framework in place. Now, they've actually got that framework in place, which says, look, if Bitcoin is trading under or over a certain amount, the MNAV is trading over a certain amount, we can buy back our digital credit securities, which is the STRC, and we can buy back up to a billion dollars of MSDR, which means that what Saylor is probably going to be doing now is, Saylor is going to be buying and selling Bitcoin to get the MSDR MNAV. So if MSDR is trading under the assets on the Saylor balance sheet, then what they'll do is they'll sell Bitcoin and buy MSDR. And when it's trading above, they'll sell MSDR and buy Bitcoin. So they've got this reflexive flywheel, which they now have going, which is basically, which they didn't have in the past. Up until in the past, it was very uncertain as to exactly what would happen. Now we kind of know what would happen. We also know that Saylor basically said, look, if we need to, we will actually sell Bitcoin to buy STRC, which I think, by the way, will be his next move. I think that Saylor's next move, maybe next week or the week after, he'll say, look, we sold some Bitcoin and we actually used it to buy STRC and get STRC back towards that 100 So let's wait and see. But in the meantime, the markets basically said, look, they breathe a sigh of relief, so to say.