Bloomberg Audio Studios, podcasts, radio news. Let's keep this conversation on crypto going because so called digital asset treasury firms have announced plans to raise a combined seventy nine billion dollars so far in twenty twenty five just for bitcoin purchases, according to advisory firm Architect Partners. But that trend is expanding into smaller tokens as well. And I'm pleased to
say that joining us now is Strategy Executive Chairman Michael Sailor. So, Michael, it feels like, of course, MicroStrategy strategy as it's now known, really started this crypto treasury company trend that we're seeing now. I know that you broadly are supportive of seeing that, seeing competitors come out and also raise their own crypto treasuries. But how do you feel about the trend that now it's moving more into alt coins, it's moving away from bitcoin.
Do you think that that's a sustainable setup now?
I still think the vast majority of the capitol flowing in the space is flowing into bitcoin. We've gone from about sixty companies capitalizing on bitcoin to one hundred and sixty companies just in the past six months, So I'm laser like focused on bitcoin. I think bitcoin is digital capital. I think it's going to outperform the S and P Index over the indefinite future. And I think it's the
clear global monetary commodity in the world right now. So it's the lowest risk, highest return, most straightforward strategy if you want to outperform the S and P and if you want to inject vitality and performance into your balance sheet.
So it sounds like you're not concerned that perhaps the fact that we're seeing these other digital asset treasury companies come to the four here expand into all coins, You're not concerned that that's going to detract attention away from what strategy is doing.
You know, I think there's an explosion of innovation across the entire crypto economy, and on the margin, it's really good for everybody in the digital asset space right now. I think the big idea is one hundred trillion dollars plus of capital and the traditional equity capital markets and traditional credit markets, and what we're focused on is delivering
digital asset backed equity and digital asset backed credit. And I think those credit instruments and equity instruments are just going to outperform the traditional fiat credit and traditional fiat equity instruments all around, and capital is going to flow into the digital economy due to that.
Michael, explain the assets, the unique assets to which you offer investors access, because it's not just you know, bitcoin treasury company, you have, you think, a unique selling point compared to other others trying that strategy.
Yeah, the real compelling idea of a bitcoin treasury company is we hold a huge stock of bitcoin, about seventy four billion dollars worth of bitcoin. Bitcoin's a twenty one year duration asset. You got to hold it for twenty one years if you want the full potential, and it's about fifty boll and fifty aoar. Most people don't want that amount of volatility, even though it's got that performance,
and who wants to wagh twenty one years? So what we've done is we've created structured bitcoin in the form of strike STRK. We give you the bitcoin upside, a guarantee dividend and principal protection, and that's an alternative for people that don't want the roller coaster. We've created a
long duration senior credit instrument called STRIFE. Think of it as a twenty one year bitcoin back bond pays about eight and a half percent dividend yield right now for people to just want that quarterly dividend yield and a seniority in the capital structure. And then you've got a
high yield, long duration instrument called STRIFE. It's actually paying like eleven and a half percent divid in yield right now, and so that's for people that want high yield forever and they'd rather have eleven percent quarterly than take that's guaranteed. Then the roller coaster a bitcoin. And then the most exciting thing we've done just a few weeks ago. It's
the biggest IPO of the year. It's called Stretch STRC, and STRC is like a monthly bitcoin backed bill, and so think of it as a bitcoin alternative to treasury bills or money market funds. It's nine percent divid in yield monthly cash pay and if you just want to park short term cash and get paid nine percent dividends and have it powered by bitcoin, you're not taking duration risk on the interest rate, you're not taking the bitcoin volatility. And that's our most successful offering to date.
Well, Michael, I do want to talk a little bit more about your financing. You touched on it a lione little bit. One of the other trends that you've started is issuing convertible notes to fund your bitcoin purchases. You've also been issuing preferred stock as well. When it comes to just straight micro strategy shares, we know that it's very popular with retail. We know convertible notes have been
popular with more of the Wall Street crowd. Do you have any insight on who the end buyer of your preferred stock is?
Well, right now, we've had really extraordinary demand from retail are in our last offering. I mean we started with about thirty or forty million of retail demand on the first preferred, and then it increased the sixty million on the second preferred, and then one hundred and twenty million on the third preferred, and about six hundred million on the fourth preferred, So retails off the charts. We've also got a lot of institutional long investors people that are
holding it. Look, if you like bitcoin or if you like mstr these are all pretty compelling for any pol A capital you've got. And then of course a bunch of hedge funds also got very excited about this. There's lots of different ways to trade these against each other, so a good mixture of institutional as well as retail investors buying into all these preferreds.
And Michael, I'd also love to get your thoughts on some of the other big news from today. A lot has certainly happened on this Friday, but one of those is what's going on in the gold market right now. You have the Trump administration ruling that gold bars will be subject to tariffs as well, these reciprocal tariffs, so imports of gold will be tariffed, and that's really sending
shockwaves through the gold ecosystem. Gold and bitcoin are often compared to one enough of their bitcoin called digital gold, for example. I wonder if you think this has any ripple effects positive or negative for bitcoin.
It does. Bitcoin is digital gold. That's going to accelerate the migration of capital from physical gold to digital gold. You know, bitcoin lives in cyber space, no tariffs in cyber space. The big appeal of bitcoin is it's not physical, it doesn't have weight. You can settle anywhere with anybody in a few minutes. And so gold has always been too heavy, too slow, you know, and you can't really ship it across an ocean, and if you do now
you're getting terriffs. So I really think it just reminds everybody why the digital version of gold is better than than actual physical gold. And I think it's going to catalyze a new wave of institutional adoption of bitcoin.
All right, Crypto is stateless. It's hard to tear if Michael have to leave it. They're really enjoyed speaking with you though. That is Strategy Executive Chairman Michael Saylor