MicroStrategy's $3.9B Bitcoin Play: Use Saylor’s Infinite Money Glitch!

steal Sailor's playbook for yourself. So with this video, I'm going to break down how micro Strategy levered billions to create a bitcoin windfall, what exactly is the infinite money glitch, and how you can apply it for your own investments, and if there's still time to jump in and make the strategy work for you now real quick. My name is Mark Moss. I'm at a tech investor for two decades, two big exits. I speak on the largest bitcoin stages

in the world. I'm a partner in leading bitcoin tech VC Hedge Fund, and I'm launching a brand new publicly traded company called Matador that's going to be following this micro Strategy playbook two point zero. So let me break down how we're stealing this strategy and how you can do the same. All right, we're gonna jump right into the infinite Money glitch. Now listen, there's a lots of cover.

I want to tell you why they decided to make this and how it works, what their competitive vantage is, and of course at the end the last slide, I'm gonna show you how you can do this. There's a couple of ways you can play this on your own, but let's just start with this because I don't think anyone's ever broken the math down this way. You've never seen this before, the infinite money glitch. We all want that, right, Okay,

So number one, let's explain how the glitch works. So basically, what micro Strategy is doing from a nutshell we'll get in the details. From a nutshell is they're taking on debt and they're buying bitcoin with it. All right now, up to date, since twenty twenty, they've taken on almost four billion dollars three point nine billion dollars in debt and they're now sitting on over fifteen billion dollars in market valuation. So four billion in debt fifteen dollars fifteen billion.

Sounds pretty good, right, But how does this work? Let's sort of break down the math. Okay, so what micro Strategy is doing is they're using debt, but not just any debt. What they're doing is they're using something called equity convert markets. And so because micro Strategy has equity, it's a publicly traded stock, they're able to use that equity, that public equity and put that up as collateral to

borrow money at really good rates. Now that equity could convert over if they don't pay it back, and so they're able to leverage debt at at a crazy lower level. Now you and I, unfortunately we can't do this personally. Other businesses are starting to do this, and I'll show you how that's working, but we can do it at different rates. But let me show you the math. Okay, So they've taken on kind of two different types of debt.

One they take on debt and they're their highest they're paying is crazy one point seven to six percent interest on that, and then for the notes that are convertible, they're paying zero point eight. So they're literally borrowing billions of dollars at zero point eight percent. Wow, I wish I could get that, but we can't. Now, if we look at this, we can say, let's just take the highest amount I didn't go through and look at all

the different percentage in trying. Let's just assume that all the debt, the three point nine billion, is all at the one point seven to six amount, which is not so it's actually less than this number. But for the easy math, let's assume it's at the one point seven to six. That would mean that they owe sixty eight million dollars a year just an interest, sixty eight million a year in interest. Okay, Now what does that mean for us? And how does this work in the infinite

money glitch? Well, they're borrowing billions three point nine billion, they have fifteen billion in bitcoin, but they owe sixty eight million just in the debt service. But here's the thing. If we take a look at bitcoin, since micro Strategy has been doing this, which is the last four years, we can see in the last four years, since twenty twenty, bitcoin has been averaging a fifty five percent return per year. Now we can look at different time periods. We can

go since the beginning of time. It's you know, the last decade, it's about one hundred and fifty percent, but I think the last four years is a pretty good time period to look at. Fifty five percent compared to the S and P five hundred and thirteen percent, Nasdaq thirteen percent, bonds, losing money, silver, two percent, goals, et cetera. But fifty five percent. So again back to the simple,

easy math. They're borrowing at one point seven six percent and they're buying an asset that's going up by fifty five percent the four year average. So what this means is that they're making fifty five they're paying the one point seventy six they're netting. They're profiting fifty three point two percent per year by borrowing low and buying high. Maybe we call this a specuative attack. They're buying in a cheap, failing currency and they're buying in a harder currency.

Now we can do the same thing. There's companies do the same thing, and you don't have to be a billionaire to do this. So let's break down how we can do this now. First thing, why are they even doing this? Besides the fact of making a lot of money, We want to understand micro strategies, big pivot Now. Michael Saylor has been on many shows conversations talking about this. I speak at a bunch of conferences with him, I've been at his house, I've had dinner with them multiple times.

We've discussed this in great detail, and it's not a big mystery. Like I said, He's on lots of shows talking about it. And basically, micro Strategy is a software business and their business model was sort of trending down. The business model of a software company is great because there's a lot of recurring revenue MRR monthly recurring revenue, but it's very hard to continually build new software and

stay up to date. And so he said, look, you know, I looked at this from a perspective of we have a lot of cash, but the cash is losing value. This is in twenty twenty when they were printing trillions of dollars of stimulus. So the cash is losing value very very fast. I don't know if I really want to invest it back into the software business. But we

have this good cash flowing asset, so what should we do. Well, we looked at all the options we put into bonds or real estate or stocks or whatever, and we realized that the best place we could put billions of dollars for one hundred years. That was the qualification. The best place to put a big chunk of money for a long period of time was bitcoin, and so they did. Now I want to say right here that smart people

change their mind. And this is for all the skeptics that are out there that think this is all a bunch of scam and joke and magic internet money. Michael Saylor did too. This is a whee from him December eighteenth of twenty thirteen, and he said that Bitcoin's days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling. So in twenty thirteen he thought it was a scam, He thought it was a joke. He thought it was going

to go away and then get rid of it. However, then just a few years later, seven years later to be exact, on September fourteenth, twenty twenty, Microsoft micro Strategy completed its first acquisition of sixteen almost seventeen thousand bitcoin. Amazing Bitcoin had an accurate purchase price of seven one hundred and seventy five million dollars. So he went from twenty thirteen saying, look, this is a joke, it's a scam.

It's never gonna last. Going to go away to twenty twenty buying billions of dollars with it, and now twenty twenty four being what we call the Gigchad. He's like the biggest advocate of this, and he talks about it all the time. So they had to pivot away from the software, but they still have the software business. We're going to talk about this when we get deeper into the into the plan of how you can apply this. But what they really built wasn't just a way to hedge.

I put here, the hedge isn't as good as a leveraged play. So whether they were just trying to hedge their position, like he wasn't just trying to say, how do we preserve our cash by putting it into another asset, stocks, bonds, et cetera. It wasn't a hedge. He was trying to find a way to leverage it up to do some financial engineering. Well, he is an engineer from MIT, That's

why he thinks this way. All right, So now that you sort of understand the why, you might ask yourself, if you're in the same boat, do you have money that's in an asset that's not performing well, and would you like to put that money into the best performing asset And would you like to follow an engineer from MIT and learn how to do some financial engineering. Well, let's figure that out. What is the play for you? Then? Okay, So the key is, like I said, from an MIT engineer,

how did he financially engineer this? And it's not just holding, not just holding, It wasn't just hedging, but it was financial engineering to actually leverage this up. And really, what micro Strategy offered to the market was what we call volatility as a product, which sounds crazy, right, And that's because for the average investor, they think that volatility is dangerous. It's one of the things that you hear about bitcoin the most, it's too volatile. Well, it turns out professional

investors and allocators they want volatility. They want it because volatility is this how do you make money if an asset say straight you don't you need volatility, and people want to. Professional audicists want to bring volatility their portfolio, believe it or not, when well, that's why they're the smart money. And so he offered volatility as a product and he has a stock now that moves multiples on

top of bitcoin. So Bitcoin's already too volatile for some, and now it moves multiples on top of that, which means it's even more volatile. But of course, volatile means moving up and down, not just down, but up and down. And what we can see here is that micro Strategy has been outperforming everything else. As a matter of fact, we can see this sort of teal green line right here. That's micro Strategy and it's close, sort of neck and neck with this blue line right here, which is in Vidia.

So in Vidia and micro Strategy absolutely crushing it. Everything else is down below this orange line right here, that's where Bitcoin is. And then down here this yellow line that just basically sits flat ray here that's the QQQ. Then this blue line that's even a little bit lower than the yellow line, that's the SPY, the S and

P five hundred. So stocks are down here, Bitcoin is right here, in Vidia is right here, and micro Strategy is sitting right there completely outperforming everything because of the financial engineering that we have. Now it hasn't just been outperforming all of those things and even Bitcoin, but when we look at it priced in bitcoin this is an

important thing. I do everything like this. We can see that micro strategy priced in bitcoin since January of twenty twenty three, not since twenty twenty, but since twenty twenty three is up almost two hundred and eighty percent priced in bitcoin just since January twenty twenty three. So it's been working really really well. Now back to the sort of the math. How does he do this? It seems very risky, right, Leverage is bad. Leverage is dangerous, especially

on a very volatile product. So how does Michael Saylor? How does it engineer from MIT manage the risk and something like this? Well, they manage the risk with cash flow. A small business owner, are you buried in all types of work keeping you from the real thing that makes you money? Well that's where Just Works comes in. They're the all in one platform that supports small business growth. You can get all their tools that help with benefits

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human support. So visit Justworks dot com slash podcast to join the thousands of small businesses that trust Just Works to take care of payroll and if it's compliance and more. Again that's Just Works dot com slash podcast. So, as I said, micro Strategy has been borrowing three point nine billion dollars. They have to pay sixty eight million dollars a year in interest. What happens if the price of the asset goes down? What if bitcoin drops to fifteen

thousand or ten thousand? So what he just has to pay the sixty eight million dollars a year. Well, how does he do that? Well, turns out he has a company, again, a software company that throws off a lot of free cash flow. So his company, micro Strategy, is throwing off last quarter one hundred and eleven million annualized I'd be

over four hundred million. This is a five year chart of the gross revenue on a quarterly basis, and what we can see is this is one hundred and thirty right here and right down here is about one hundred. So we're in this about one hundred and fifteen one hundred and twenty million dollars of gross cash flow per quarter or over four hundred year. So he's making four

hundred ish and he owes sixty eight ish. And so that's how he hedges his downside, even if the collateral, even if the price of bitcoin drops to five ten thousand, ten, whatever it is, as long as he can continue to pay the sixty eight million dollars in interest. He can do that now because of that, because he has the cash flow. This is key when we get back to how we apply this on our own. Because he has the cash flow to cover the debt service, he can

continue to leverage it up without the risk. You see, most people get themselves into trouble. They burn their house down with the leverage. But he is managing his downside. Okay, is that sound good? Now? How do you and I how do we steal this strategy? How do other companies steal this strategy? Okay, well, before we get into how you and I and how other companies are stealing the strategy, I want to give you the name of a couple. Before we get into that, let's talk about just the

elephant in the room. Should you be buying micro strategy, or should anybody be why wouldn't they just buy bitcoin directly? And this is a good question to understand bitcoin or micro strategy, which one's better, especially considering that micro strategy is a big, hefty premium over to just buying bitcoin directly.

So let's answer this question. Number one. The way that micro Strategy has developed this or financially engineered it again is that for about every one dollar that bitcoin goes up in price, micro Strategy goes up by two dollars on their market cap. That's pretty interesting, and that's because of the levers they put into the system. Also, micro Strategy has much better regulatory protection and clarity. What do

I mean by this? I am not telling you that the governments are going to make bitcoin illegal, they're going to take away or right to own it. I don't think that's the case, not in the United States theame way. I think that ship is saled. But still today there's a lot of institutions, funds, things like that that don't allow you to buy bitcoin right it's a commodity and

they can only buy equities for example. Maybe some people, maybe foreigners, they can't buy the bitcoin ETFs that are available and so it's very easy any one of these foreign people, institutions, etc. Can just buy in equity, and so there's regulatory protection around equities. They're already very well established, but the commodity side, or the ETF side of bitcoin is still unclear of how different funds mandates allow them to do that. So you can really think of micro

strategy really as like a high octane ETF. It's easy, click up a button, I can bring it in, I don't have to custody it. I don't have to worry about cold storage or any of that, and it goes up at a much more multiple than just bitcoin ETF. If buy the bitcoin ETF, for every one dollar goes up, micro strategy is going up by two dollars. But listen, there are trade offs. I'm not saying you should go buy a micro strategy. What I'm saying is they're different,

they hold different roles in your portfolio. Break that down for you in a second. But there are tradeoffs. Like I said, one, with micro strategy, you don't have to worry about the onboarding and the storage and all those things, but you also have a lot more volatility you have to work with or deal with I should say. And one of the things with micro Strategy versus bitcoin is because of the debt service, it has these reflexive feedback loops, right, So Bitcoin sort of sits in the middle and it

continues to go up. Now, what we can see is how that's worked out for micro Strategy in the last four years and since twenty twenty, we can see that micro Strategy has outperformed everything with a one three hundred and thirty nine percent return, while Nvidia, which is also all performing a thing, is up nine hundred and fifty percent.

So that's a pretty big deal. Down here, we have Tesla one fifty three, Google one forty, Microsoft one ten, Apple one hundred ninety nine, Meta eighty one, Amazon sixteen percent. So because of this financial engineering from an MIT engineer like Michael Saylor, he's been able to propel his company to outperform everything else. Okay, so how do you steal this? How do other people steal this exact same strategy? How

can we do it? Because I can't borrow at zero point eight percent like he does, and I'm sure you can't either. Okay, there's a couple of ways we can do this. Number one, basically we're leveraging debt. Now, this

is something I've talked about for a long time. This really kind of came into my purview when I was studying the history of the Weimar Republic, the hyperinflation that happened there, and a man in Hugo Stenez became one of the wealthiest men in Germany at that time, and he did it by forming a speculative attack, which is basically borrowing as much money as you can in a failing currency to buy harder assets. He was borrowing in the German Mark, and he was buying factories and hard assets.

And this is sort of what sailor's doing. He's borrowing in dollars which are losing value, and he's buying bitcoin, which is harder and going up. So we can leverage debt. Now again, you and I can't go leverage debt. We can't go borrow a billion dollars a zero point eight, but we can still borrow. For example, you probably have debt.

You might have a house loan, a car loan, a boat loan, something like that, and you could either one pay down more principle on that credit card, that house, that car, etc. You can pay word principle, or you can take that money instead of paying more down on your home, paying off for fifteen years, you could take that money and you could go buy bitcoin with it. That's essentially the same as borrowing. Right already have debt out. If I'm not paying the debt down faster buying something else,

I'm basically using borrowed money for that. It's one way to look at it. Another way to look at it would be borrowing money out of my house. Maybe I took a home equity line, a credit line, something like that. Obviously, maybe my car's paid in cash. I can get a title loan against my car. I can get a credit card, and I can borrow against my credit card. And I'm certainly not saying that you should do those things. What I'm saying, though, is we're leveraging debt now. Should we

or shouldn't we do that? Well, that's a personal question, but let me break down some math for you. So the first thing is we want to think about what is the average gain that we expect bitcoin to have minus the debt service we're going to have to pay. So I showed you with micro strategy, they're gaining about fifty five percent a year. But they're paying you know what, is it less than two percent? It was like one point eight, right, so they're paying less than two percent.

Now I can't get at that rate. But if I don't pay my mortgage down, my mortgage is at like three and a half. So I can get an asset that's doing fifty five percent pay three and a half. Maybe I get a car loan instead of paying cash for my car, I get a car loan and maybe that's eight percent, So now it's fifty five percent gain minus eight percent. Maybe I go get a hard money loan and maybe it's ten percent or twelve percent, So now it's fifty five percent minus ten percent. So now

I'm netting forty five percent? Am I okay with that? Does forty five percent sound good? And that's a personal question for you. I can't answer that. Now. The key is is not to use leverage and burn your house down. I've done that before. It's not good. Don't do it. So how do we do it? Well? We protect our downside, just like Michael Sailor does. We need to make sure that we have the cash flow coming in to cover the debt service. Don't expect that every single year you're

gonna make enough money to pay off the debt. Because sometimes there's down years you need to protect your downside. Michael Sailor, of course, has a software business that's throwing off a lot of free cash flow. For me, I have businesses, I have other cash flowing assets, so I can borrow some of this debt, put it into bitcoin, And as long as I have the cash flows coming in from other sources that can continue to pay that debt service, then I've at least limited the exposure to

my downside. I want to make sure I can cover that debt. Now, a question you might ask is, if this is so good and mark you make it seem so simple, are more people doing this? Or I should say, maybe who else is doing this? Well, let's take a look so we can see that. I believe there's over fifty publicly traded companies now who are doing at least some variation of this, specifically putting bitcoin on their balance sheet. So most corporations and hopefully your business, has money in

the bank. Some companies like Apple and Google have billions of dollars in the bank, so where do they put that money? They have to run a strategy for that. So a lot of them are starting to move some of that into bitcoin, of course they are, But what should we do as individual investors? And who else could we see? Well? Number one, we should be buying bitcoin first. So I think of it like that's sort of like the blue chip stock. For sure, get some bitcoin. Then

from there, what could we do? Well, then we could find some leverage plays. So for example, here's a com company is called Metaplanet. Metaplanet launched in April of this year, April twenty twenty four. It's in Japan. If you're in the US or anywhere and that's not Japan, it's probably very difficult for you to buy this thing. But it's in Japan, and basically right here on this date you can see this took off. They announced that they were going to run a micro strategy playbook where they it

was a real estate company. They're going to take about eight million dollars of assets they had put into bitcoin and started leveraging up. And they've been doing so since April. Since they've announced that their stock is now up five x. They've made a five x return. They were here at this point, they were a ten x. Now look it's volatile. It's more volatile than bitcoin. So it was up really high here, then it came down and went back up, and it's come down and it's coming back up again.

So it's been between five to ten x just since April since they announced this. So they're doing that. Another company that I'm working with we're taking public in Canada. This company should be public within the next thirty days is a company called Matador. We're doing the same thing. We'll be leveraging a bitcoin and we'll be using the equity sort of like what Michael Strategy does to acquire

Layer two application companies on that as well. And like I said, there's over fifty other companies publicly traded that are doing something similar now. Matador is going public. We're in an IPO phase right now. We do have a little bit of a window for accredited investors. If you're in a credit investor and you want to find out

about Matador. I'll put a link down below if you want to go watch a presentation and learn more about it, if that's the way that you can do that, or we'll put a QR code here on the screen if you want to check out Matador. But otherwise Metaplanet Matador are doing that. Fifty other companies are doing an other public balance sheet and you can do the same. You can build your own leverage plays. You can buy your bitcoin.

You can borrow against your bitcoin at ten to twelve percent and then use that to buy more bitcoin again. You can not pay your home, doown quicker. You can get a loan for your car, and there's all these ways you can get access to debt. But I want to warrant you just one more time. Debt is a double edged sword. It can burn your house down or cook your food, as long as you can manage it properly.

And you do that with cash flow like Michael Sailor does with micro strategy, and make sure you do the same. All right. Anyway, Hopefully this infinite money glitch helps you. This is a strategy that I'm personally doing. I talk about this quite a bit. As a matter of fact, I wrote a whole ebook on how to do this, How to retire tax free off of Bitcoin. It's on my website if you want to go get it's a free,

free book. Anyway, That's what I got. Hopefully this makes sense if you want to know more about investing and why I use bitcoin as my base. Then you probably want to know about this investing black hole video I have right here. That's what I got to your success. I'm out.