Strategy Changes Everything… Again! #CryptoTownHall

**Dave** (0:00)
Well, good morning, everyone. I'm trying to get through on two hours of sleep. So if I'm a little, I sound a little bit ragged. So be it.
Adam, I guess you can hear me. So the mic was working.

**Adam** (0:12)
Wait, what's going on with the two hours of sleep?

**Dave** (0:15)
Oh, well, I went full DGN yesterday. I'm out in Vegas at the World Series of Poker. I played in a bunch of bracelet events, cashed a few times. I played yesterday in a deep stack event. At the same time, was playing online on my phone to try to win a seat to the main event, this 900 person extravaganza, their 25 guaranteed seat deal. So I was playing both online and live at the same time.
The live went well into the money, lost in a brutal bad beat, but that didn't matter. I was still playing online and I sat there. I then had to go to the cage, cashed out as I was playing online. And ultimately by one in the morning ended up winning my main event seat.
So you can only imagine the adrenaline rush that caused. So try going to sleep after doing that and then waking up at five something in the morning to do a macro Monday with Scott and Peter Schiff. So I'm a little ragged today, but so be it. That's what's going on. So anyway, but we have a lot to talk about this morning. We have the new manifesto from Michael Saylor and Strategy, which honestly, I don't see anything surprising in there. In fact, virtually nothing. But the whole market is freaking out about this and coming up with lots of takes, some of which sound ridiculous, some are reasonable, and etc. So I'd like everyone else to talk about it rather than me. But my basic case has not changed. Strategy is a bet on the long-term price appreciation of Bitcoin. They have no direct need to sell Bitcoin in the near future. In fact, they don't have to do a damn thing. They're under way less stress now than they were in 2022
People who think the opposite, I think it's wrong. Now, that said, they're likely not to be buying Bitcoin down here at all. For a while, because they have absolutely no reason to do so or cash machine to do so.
But that could change as the price changes. They're not going to be the price supporter at this level, but they're also unlikely to be the price trigger on the cascade of the downside that everyone thinks. Jamie.

**Jamie** (2:41)
Hey, Dave. Hey, congratulations as well with the poker stuff I was rooting for you, man.
We talked about this last week. I mean, we kind of like the idea of the 32 Bitcoin was just like kind of dipping the toe in the water. And we talked about the idea of having to normalize that process. I mean, it would have been ideal if he would have done it maybe during August, September of last year when it was going up. Right. But it is what it is. Now that's what he needed to do. And he put over the weekend, you know, after they had the Peter Schiff space on Wednesday, and then the lawsuit, the media FUD campaign that came out on Thursday into a nice weekend of low volume. And then, you know, but over the weekend he came back and he said, hey, listen, we're going to raise the, you know, the preferreds. We got some reserve capital that stretches them out to 25 months.
You know, they have a plan put in place for selling, for repurchasing some of the, you know, MSCR and the digital securities and, you know, the dividends as well in a plan to cap for, I think it's about a billion for Bitcoin sales. So, I mean, they kind of covered it all. And I think this is kind of like letting everybody know we have a plan. We're willing to do it. We said we were going to. And I think, you know, looking back, I'm thinking about just getting into the next quarter, the next, you know, the next month. And so that's what they're trying to do and get to that next bull market. Hopefully, in a bull market, I think we all agree, or maybe some of us agree, that MSTR strategy will be fine. So I'm curious what you think about where we're headed with what he did.

**Dave** (4:30)
Well, I mean, it doesn't be curious for me. I mean, if you believe Bitcoin is going to rally, then MSTR will outperform in a rally. If you believe Bitcoin is going to be sitting in the doldrums, it will underperform. Even if it doesn't rally, even if it doesn't go down, it will underperform in a flat and sideways market. That's just how it's designed. As far as STRC goes, STRC is high yield debt, and its ability to pay is based upon Bitcoin's future price, as opposed to corporate earnings. I mean, there's nothing else to say about that. That's what it is. But the notion of people who believe that we are in 2022, that there's going to be waves of force liquidations, and that's what everyone's saying, I think that's fantasy. I think we've had a lot of liquidations from 120 down to here. But this notion of waves of force selling, I don't see where it is, and it feels like you're locking the barn door after the horses have bolted by selling it around these levels. Does that mean it can't go lower? Of course not. We've talked about that before.