Michael Saylor’s Strategy MSTR has engineered a financial mechanism that transforms market enthusiasm for Bitcoin BTC/USD into a self-reinforcing growth engine, according to the company’s executive chairman.
What Happened: In a Financial Times interview on May 13, Saylor detailed the mechanics behind his Bitcoin-focused strategy, which he claims helped the firm outperform tech titans like NVIDIA and Meta en route to a $100 billion valuation.
Describing the system as a “quadratically reflexive, engineered instrument,” Saylor openly embraces his role as a financial architect, one who, according to crypto enthusiasts, has created something akin to an “infinite money glitch.”
How It Works: The strategy hinges on an arbitrage mechanism: when MicroStrategy’s stock trades at a premium to the value of its Bitcoin holdings, the company issues new shares to raise capital and buys more BTC, effectively acquiring the asset at a steep discount.
“If our stock trades at a 200% premium to the underlying asset, we can sell a billion dollars of the stock, buy back the underlying asset, and make $666 million in that arbitrage of sorts,” Saylor explained.
This dynamic allowed Strategy to raise capital at unprecedented speed. “During the November stock surge, they raised $12 billion in just 50 days,” noted digital investor Jeff Walton. “Raising $100 million once is tough, they did it 120 times in 50 days.”
Unlike most firms, where dilution frustrates investors, Strategy’s shareholders embrace the model, as it increases the amount of Bitcoin held per share.
The firm also used its premium to secure favorable debt deals, recently issuing $5 billion in convertible bonds at 0% interest.
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Disclosure: 82% of retail CFD accounts lose money
Why It Matters: The model functions like a self-reinforcing loop: capital is raised, Bitcoin is bought, Bitcoin price rises, the company’s share price climbs, and the cycle repeats.
Saylor’s promotional push, including non-stop Bitcoin evangelism on social media and even hosting Bitcoin-themed parties at his Miami home, further fuels demand.
But the strategy is not without risk.
It depends entirely on Bitcoin’s continued ascent. In early 2025, when regulatory concerns triggered a BTC selloff, Strategy recorded nearly $6 billion in unrealized losses for Q1.
Though Bitcoin has since rebounded, critics argue the model is precarious, requiring constant new capital and strong market sentiment to remain sustainable.
What’s Next: Despite volatility, Saylor remains unwaveringly bullish.
He forecasts Bitcoin at $1 million within 10 years, and potentially $13 million by 2045. If that happens, he envisions Strategy scaling “from a $100 billion firm to a $1 trillion, even $10 trillion enterprise.”
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