SAYLOR ON THE BITCOIN BEAR MARKET (AND WHEN IT FLIPS)

Indexed: 2026-05-22

[00:00:00]Michael Saylor just went on TV and talked about where Bitcoin could be 21 years from now. The chances that it hits zero here soon.

[00:00:09]How they're going to be buying more Bitcoin than is even mined for the next 100 plus years. He talks about why you would want STRC. He talks about why he thinks we're in a bear market and when that will change. He talks about a lot of stuff. Um let's play this clip uh from CNBC. I'll kind of walk you through it as we go through through and give you some of my opinions on it. Now, if you do want to trade Bitcoin or other cryptocurrencies, check out BTCC underneath the video. It's in the link tree. You can get a 10% bonus on first-time deposits. So, check that out below and let's get into it.

[00:00:45]Overall, have a have a feeling about whether this would you call this a crypto winner or a crypto uh pseudo winner that we've been through for a while? Is it Are we near closer to the end or >> Yeah, I think or do you even care at this I think so. I mean, I think we we were at the top in October about 125. I think we bottomed at 60. I think we're moving into the spring phase. We've got decent support here in these levels. I think we'll rally from here. We're just working against a few macro headwinds right now. What macro tailwinds are possible? What about Congress?

[00:01:18]Well, I think the the passage of the Clarity Act will be a big deal. I think even in the absence of that, the release of and guidance that lets you tokenize securities and and sports digital assets such as the SEC, the innovation of invention innovation exemption, that would be a big deal as well. It It for people that don't follow it that closely, I mean, there are there are So, he does say that we're in a bear market and he It's interesting cuz he he doesn't seem to really subscribe to the theory that Bitcoin just has bear markets at the same time just because it's had bear markets at the same time. Like a lot of people have started to believe in the cycle theory that we're going to fall down um every four years at the same time we're going to bottom around the same time every four years because this has happened for the last 12 years in a row.

[00:02:04]But he points out specific catalysts that are fundamental catalysts. He's not just saying we have to wait until Q4 to we bottom. No, he doesn't think that's really the case. For our the halving the halving that gets harder and harder to mine at some point and even though we're getting close to maximum number of where we at of the 121 million are we at? The I mean the next halving's in two years. And we're at what right now?

[00:02:32]Like we're never we it's like asking to we get towards the end it gets harder and harder to mine any. And it'll be a couple hundred years before we get to 121 million. There's not much Bitcoin left because it There's less than 5% Bitcoin left. There's less than a million that are going to be mined.

[00:02:46]There's already 20 million that have been mined and it will take till 2140, around that time. Of course it could change a little bit, but around 2140 is when the last Bitcoin will be mined.

[00:02:58]This point all of the organic supply of Bitcoin being produced by the miners is being taken up by the Bitcoin >> bought more than was mined this year for for strategy.

[00:03:07]>> Yeah, we have. Yeah, the formation of digital credit means that the credit market itself is absorbing all of the organic supply of Bitcoin from now to forever. Our company will probably buy all of the Bitcoin that's produced by the miners between here and the year 2140 and then there's no more Bitcoin.

[00:03:25]2140? Yeah, that's right. You have to leave that theoretically in your for your successors to to to orchestrate. So talk orchestrate.

[00:03:34]Talk talk talk about the credit side of things and and you've talked about it here before and my eyes kind of glaze over, but I'm getting it a little bit, but >> Well, you know, Wall Street firms have been creating structured products forever. They take a a big stock of S&P securities and they strip the downside, they give you part of the upside, they sell it to high net worth individuals that would like upside with downside protection. What we've done is taken a capital asset, Bitcoin, and we're taking those we're converting that capital or those capital gains into credit dividends. So, we think Bitcoin's going up more than the S&P index over time. We expect 30%, but it doesn't matter if it's 10 or 20%. We can pay 11 and 1/2% dividend on a preferred stock, a credit dividend, because that represents a fraction of the long-term capital gain that we're expecting. And so, if you're disciplined about the way that you convert a capital gain into a credit dividend, the capital gain's unrealized, the credit dividend becomes return of capital and is tax deferred. So, digital credit is really synthetic yield where we're extracting the first 11 and 1/2% of our expected capital appreciation of Bitcoin. We're remitting it to the credit investors via an overcollateralized preferred stock.

[00:04:51]If you've got money you don't need or you need it in the next 4 years, you either put it in a money market and you get 3 and 1/2% taxable, or you put it in digital credit, you get 11 and 1/2% tax deferred. So, if you're a crypto believer and you have working capital, you want to buy digital credit cuz you get paid four times as much after tax.

[00:05:10]And it's a preferred. It is a preferred stock.

[00:05:13]>> convertible?

[00:05:14]It is it is just a straight >> I'm sorry. Is there would you have even >> more upside than the 11 and 1/2%? In other words, is there >> No.

[00:05:23]The the real breakthrough with STRC, it's the biggest preferred stock in the world, it's the fastest growing preferred stock in the world, it's the most >> But it generates 11 and 1/2%, you keep the rest if there's a The the reason it works is because we target $100 and then we use a variable dividend rate in order to keep it at a Now, he'll get back to Bitcoin here in a second, but he's spent a lot of time talking about STRC specifically.

[00:05:50]Like the Bitcoin conference, he spent the entire time talking about STRC as well and spending a lot of time on it on CNBC. 100 and we attach a shelf registration to it. So, if it trades at $100 and a penny, we sell it and so it has become the lowest volatility credit instrument and the most liquid credit instrument because in essence it's a bank account that pays you 11 and a half percent tax deferred. Tax deferred and and it it if there are additional gains in Bitcoin, then you're if it is the 30% instead of that you could do it with 10 you said, but if Yeah, so What if it is 30? Who get Who gets the The common stock investors. So, what we've done is we've created a way for for common stock investors to create amplified Bitcoin.

[00:06:37]MSTR has outperformed Bitcoin over the past 6 years.

[00:06:41]>> to use that to the base the preferred that's the credit that the preferred is based on.

[00:06:46]>> stock absorbs the risk, the volatility, and the upside and the credit gets the first 11 and a half percent. And so, you get the common stock has a vol of 70, Joe, and the credit has a vol of like three and Bitcoin has a vol of 40. So, what we're doing is financial engineering where we strip the upside and the volatility, give it to the common equity investors.

[00:07:09]That's a rocket. Bitcoin is a fighter jet. STR is a passenger jet for people who want a very comfortable ride, but they want to get double you know, other credit. What's the size of this of whatever it is that you're doing right now? How much is is is >> It's gone from zero to 10 and a half billion dollars in 10 months. We sold two billion dollars last month. It's It's growing at a 24 billion dollar a year run rate. And then for your company, what you keep doing this? Is this going to be one of your main vehicles and and and how will that benefit strategy?

[00:07:41]Allows you obviously to keep buying Bitcoin. If If the company The company has has about $65 billion of Bitcoin. If we did nothing, we're just holding $65 billion of Bitcoin, we look like an ETF.

[00:07:53]But, if I sell the credit and I buy the Bitcoin, and Bitcoin appreciates 20% a year, this is screamingly profitable for the common equity, and the The company will outperform Bitcoin, and that means a Bitcoin's up maybe 40% in the last 6 years, our company's up close to 60% a year annualized. There are you know, Bitcoin bears and and non-believers that will never be converted, and some of them are pretty smart and pretty wealthy.

[00:08:19]I think I don't think they've taken zero off the table for for where they think Bitcoin is headed. Have you taken that? Do you think any rational person has taken that off the table at this point? The the beanie the tulip beanie baby There's always going to be skeptics, but there's 900 million people that have a crypto account, or they're buying it, and and products like STRC are democratizing this because that We've got a viral action spreading through retail accounts, through retirees. There are a lot of people that are living on a fixed income, and their view is they don't want to bet their kids tuition, or they don't want to bet their capital on the Bitcoin roller coaster, but they would like to get paid four times the money market. And And they don't think it's going to zero, right?

[00:09:08]>> Just humor me, and the I feel like if you don't believe that Bitcoin's going to do well, you probably don't want to buy STRC, because then you still have exposure to Bitcoin, and you don't believe in Bitcoin. I think STRC is more for people that actually believe in Bitcoin, but have those short-term time frames where they need some money in some period of time, or there are some people that want like a bridge where they need some income, some fixed income, maybe they left a job.

[00:09:37]They let's say that all the fears about quantum computing come true, Bitcoin goes to zero, what happens to retirees that have all their money in the 11 and 1/2% creditors?

[00:09:46]>> When consensus forms about a quantum threat existing, then we will upgrade the entire network in a matter of months.

[00:09:54]And uh there's It'll happen it'll happen as fast as your Apple network Apple software and Google software and JP Morgan >> watching all of the tokenization and all everything that we're seeing happen it just sort of bolsters the case that this is not a a a pool of bone phenomenon, doesn't it?

[00:10:10]What's here to stay it The real power of tokenization is it it make it creates a free market in credit formation and yield for asset owners. And so if you can tokenize a bunch of securities, then you can shop for the best credit terms and the highest yield and and in the 20th century tradfi economy, your bank decides that you just won't get credit, you just won't get yield and there's not a single thing you can do about it. And so tokenization is is a free market in capital and it's it creates this a higher velocity and a higher productivity for capital assets.

[00:10:45]So if people that have a million dollar have had a million dollar target on Bitcoin, you think it's just a matter of time. Oh, absolutely. Bitcoin's going up forever, Joe. And and if it finally was completely stable and reflected what 121 million the end result, what would it reach and and I assume it just stay there. What what what price are we talking about? Have you done the math on that? Well, I think 21 years out, I don't know why it wouldn't be 21 million a coin.

[00:11:12]I would be happy with that. Let me know your thoughts on that underneath the video. Obviously, Michael Saylor has a mountainous bag of Bitcoin, so I'm sure he'd be happy with that, too. If you do want to trade again, there are links underneath the video, you can check out the link tree, check out BTCC. Thank you so much for watching and I'll see you in the next one. Bye. Just a reminder, this is not financial advice, this is not legal advice. Do your own research. I'm never going to reach out to you either in the comment section or through any other means to try to get you to invest in something that I'm investing in or to send me crypto.

[00:11:48]Some links underneath the video are affiliate links. I may earn a commission, but this is at no extra cost to you. Of course, do your own due diligence.