Michael Saylor’s Bitcoin Playbook: What’s Next?

**John Lee Dumas** (0:00)
Welcome to MSTR Today and the Treasury Titans. It is Tuesday, it is August 11th, it is JLD, and nothing in this video is financial advice. And here you have Michael Saylor walking through the streets somewhere in Asia, and he just wants us to know Bitcoin is life. Bitcoin is life, and specifically, let's go ahead and minimize that to see his post, which is, Bitcoin is the one thing in this universe you can truly own. You can truly own Bitcoin. That's what drew Michael Saylor to Bitcoin in 2020, and that's why he has 840,000 of them. Now, finally wants us to know that our USD reserve and duration are now at all time highs. In two and a half months, we added nearly 3.8 billion, and grew both more than 5X. This is the digital capital framework at work.
So many people lost their minds when strategy paid off their convertible debt by 1.5 billion to take it down to 6.5 billion total, which on a capital management side of things was a great move, but it did freak out the retailers who hold stretch and were terrified there was only $700 million left in the USD reserve. And listen, I can see that. That is understandable. Fongley and Michael Saylor have acknowledged that. They can see it as well. So guess what they did? They focused and they brought the USD reserve in just two and a half months. Literally, we're talking 10 weeks. They added $3.8 billion. They took it from $700 to $800 million all the way up to where it's at now of well over $4.7 billion. And it's incredible to see how fast they were at work, actually $4.65 billion as of today.
And we'll see where they're going to be at come next Monday. And we'll be talking more about that in this episode. But just look at what they've done. So here they were.
They started off with a $2.25 billion reserve. And of course, that was at that time, 2.7 years. And then they drew that down in this one swoop to pay off debts, not for any dumb reason, to pay off convertible bonds and convertible debts. But then they heard the people, and they started creeping it back up. But creeping it back up wasn't doing it, so they decided to absolutely go into launch mode, and they launched it to $4.65 billion, and back to 2.7 years. To me, they're going to be aiming for at least three. And again, we'll talk more about where they're probably going soon. But Strategy wants us to know that six years ago, today, Strategy made its first Bitcoin purchase. Thank you to our shareholders and the Bitcoin community for joining us on this journey, and for your courage, clarity, and conviction, Bitcoin. So happy birthday, Strategy. And as you can see, MSTR here, it's 41% standard return, annualized, to Bitcoin's 32, to QQQ's 18, SPY's 16, Gold's 13, and so on and so forth. So I think we know who the clear winner is. Grain of Salt says, we are no longer early to Bitcoin today, but strategy was not early in 2020 either. They created an industry of Bitcoin as a treasury asset. ATM common shares, convertible notes, and now digital credits, and then in parentheses, preferred shares. Update your beliefs and keep on executing.
This is not a static company. Strategy is not like, hey, we're gonna decide in 2020 what's best and do that forever. No, they are evolving, they are adding optionality, they are pulling levers, they are improving as a company, and they always will. And that's why I love this team. A grain of salt put out this poll yesterday, which I did vote on. You can see mine in blue.
He says, strategy currently has 4.65 billion in its USD reserve versus 6.75 billion of debt. Where will the USD reserve be in 90 days? And I think it does make sense, just to aim for that 6.7 billion for the debt offset, just to keep the complete, just to completely, I guess I should say, nip in the bud another one of the bears' useless arguments.
So, I think it's 6.7 billion. I can really honestly see them going 6.7 billion and then keep building, because once the flywheel turns back on, they're gonna want to keep, I believe, the USD reserve somewhere between 2.5 years to 3 years. To me, that's kind of where they're signaling that they want to keep the USD reserve, because there's been a few times in recent days where both Michael Saylor and Fong Li have said the words, you know, we want to build it towards a three year. So to me, that kind of, they kind of, I think they kind of feel like the three year is where a good ceiling is for the time being. And of course, once they start ATMing more stretch, when the flywheel turns back on, they're gonna have to add cash to that USD reserve in order to remain at 2.5 to 3 years. But again, we'll see, maybe they'll go 4 and 5 just to see how the market reacts. But to me, that kind of seems like that's not how they want to use their capital at this point. I think they feel like that excess money would be better put into Bitcoin itself. So time will tell, but of course, as always, we'll keep you completely updated here every single day. Zink says, it's amazing how easily MSTR can raise capital in a creative manner. 4.65 billion in USD reserves, 2.7 years of dividend coverage, coverage for stretches at all time highs. They are removing every reason to doubt them. S&P 500 in 2027 And guess what? People are still going to doubt them, because people are clueless and they won't put in the work. Robin says, MSTR is either going to zero or to $10,000 a share, and it's not going to zero. Allocate accordingly.