Michael Saylor

MicroStrategy holds 713,000 BTC and has established a $2.25B cash reserve to cover dividends for 2.5 years, regardless of Bitcoin price action. Management argues they are no longer just a holding company but an operating company that "manufactures credit." By issuing "Stretch" (STRC) notes at ~11% yield, they capture the spread between the cost of capital and Bitcoin's long-term appreciation (Bitcoin Yield). This structure protects the equity from forced selling during downturns. LONG. The company is structured to survive a 90% drawdown without liquidation, making it a high-beta play on the eventual recovery. Bitcoin price remaining below the average cost basis ($76k) for an extended period could erode premium to NAV.

STRC is a digital credit instrument yielding 11.5% with low volatility, backed by Bitcoin equity, offering tax-deferred income.

Saylor promotes Strategy's preferred stock (STRK) as a digital credit instrument that pays an 11.5% tax-deferred dividend, backed by Bitcoin holdings. He argues it is a low-volatility, highly liquid credit instrument that offers four times the after-tax yield of a money market account, suitable for investors who want yield without taking full Bitcoin volatility. The instrument is overcollateralized, trades near par with a variable dividend rate, and has grown to a $24 billion annual run rate.