Michael Saylor speaks at Cantor Crypto

– Introduction and market volatility acknowledgment.

– Michael Saylor introduced as a leading figure in crypto.

– Presentation titled “Bitcoin, the Red Wave, and the Crypto Renaissance.”

– Economic problem: few asset classes outperform monetary inflation.

– Companies struggle with treasury strategies and capital preservation.

– Political problem: growing the economy and maintaining global leadership.

– Bitcoin presented as a solution to economic and political challenges.

– Bitcoin’s performance over four years compared to traditional assets.

– Bitcoin consistently outperforms other asset classes over 14 years.

– Bitcoin is uncorrelated with the S&P 500, making it a desirable asset.

– Data shows Bitcoin’s high performance and low correlation with other assets.

– Wealth distribution across various asset classes, highlighting Bitcoin’s growth.

– Bitcoin’s use case: long-term capital preservation for $450 trillion in assets.

– Entropy and chaos lead to significant capital loss annually.

– Satoshi’s innovation: storing value without a trusted intermediary.

– Bitcoin as digital capital, free from financial and physical risks.

– Bitcoin as a solution for global capital preservation.

– Bitcoin backed by raw power and significant economic resources.

– Bitcoin emerging as the dominant digital monetary network.

– Institutional interest in Bitcoin growing, with ETFs purchasing significant amounts.

– Bitcoin projected to grow rapidly, outperforming other asset classes.

– MicroStrategy’s strategy: buying Bitcoin and leveraging for better performance.

– Intelligent leverage as a key to outperforming traditional investments.

– Intelligent leverage is key to outperforming traditional assets.

– Bitcoin has outperformed the S&P 500 and major companies.

– Embracing volatility can lead to significant wealth creation.

– MicroStrategy is a leader in liquidity and market cap in S&P 500.

– MicroStrategy refines capital like oil, creating value from Bitcoin.

– Issuing Bitcoin-backed bonds offers high returns with reduced risk.

– BTC yield measures Bitcoin increase per share, showing significant growth.

– The “red wave” signifies a push for freedom and crypto adoption.

– Proposed changes aim to modernize capital markets and support crypto.

– Decline in publicly listed companies indicates a failing economic structure.

The event begins with a call for the audience to be seated. The speaker expresses gratitude for the attendees and acknowledges the current volatility in the markets, noting that many are focused on their phones.

The speaker introduces Michael Saylor, the Chairman of MicroStrategy, highlighting his significant contributions to the cryptocurrency space, particularly his unique approach of using the company’s balance sheet to purchase Bitcoin in the open market.

Michael Saylor presents his topic titled “Bitcoin, the Red Wave, and the Crypto Renaissance.” He mentions that he will discuss familiar concepts with refreshed insights and introduce new ideas that may interest the audience.

Saylor outlines the economic problem of finding asset classes that can outperform monetary inflation. He emphasizes the challenge companies face in maintaining growth rates of 15% or more to keep institutional investors interested, leading to liquidity issues.

He compares companies with treasury strategies to type one diabetics, suggesting they are losing capital by holding treasury bills that underperform. Saylor criticizes the common corporate strategy of distributing capital through stock buybacks or dividends as a poor long-term solution.

Saylor addresses the political problem of growing the U.S. economy while managing deficits and maintaining global leadership. He asserts that Bitcoin is the solution to these economic and political challenges.

Saylor presents data showing Bitcoin’s performance over the last four years, illustrating its significant outperformance compared to traditional asset classes. He argues that Bitcoin’s returns are not a fluke but a structural and technical advantage.

Saylor emphasizes Bitcoin’s uncorrelated nature with the S&P 500, making it an attractive asset for investors seeking higher returns without counterparty risk. He cites Fidelity data to support his claims about Bitcoin’s performance metrics.

He encourages the audience to understand Bitcoin from first principles, drawing on his education at MIT, where he learned to solve unprecedented problems. Saylor suggests that applying basic physics and engineering principles to capital markets can yield innovative solutions.

Saylor presents a visual representation of global wealth distribution, highlighting Bitcoin’s relatively small market cap compared to other asset classes. He notes that when MicroStrategy invested in Bitcoin, its market cap was significantly lower than it is today.

He discusses the concept of long-term capital preservation, stating that half of the world’s wealth is invested in assets aimed at maintaining value. Saylor argues that Bitcoin serves as a solution for individuals seeking to preserve their wealth against inflation and other risks.

Saylor quantifies the cost of capital degradation due to various risk factors, estimating it at around $10 to $15 trillion annually. He posits that Bitcoin can help mitigate these losses, making it an appealing investment.

He highlights Satoshi Nakamoto’s innovation in creating a method to store value without a trusted intermediary, which he believes is the most profound aspect of Bitcoin. This capability positions Bitcoin as a valuable asset for long-term capital preservation.

Saylor contrasts digital capital with traditional financial and physical assets, arguing that Bitcoin offers advantages such as lack of physical risk and counterparty risk. He envisions a future where digital capital becomes the preferred form of wealth storage.

He asserts that Bitcoin is a “thousand-year asset,” suggesting that it has a useful life far exceeding that of traditional investments. Saylor emphasizes that Bitcoin is backed by raw power, including economic and digital power, making it a formidable asset.

Saylor describes Bitcoin as the dominant digital monetary network, noting that many investors are still unaware of its potential. He anticipates that as more people recognize Bitcoin’s value, it will attract significant capital.

He discusses Bitcoin’s growing recognition and market cap, comparing it to traditional assets and predicting that it will soon surpass several major companies in value. Saylor highlights the increasing interest from institutional investors and ETFs in Bitcoin.

Saylor predicts that Bitcoin will become a significant part of investment portfolios, moving from a small allocation to a more substantial percentage as understanding of its value increases. He cites Larry Fink’s advocacy for Bitcoin as a sign of its growing acceptance.

He notes that institutions are driving Bitcoin’s demand, with ETFs purchasing significant amounts of Bitcoin recently. Saylor emphasizes the limited availability of Bitcoin for sale, suggesting a supply-demand imbalance that could drive prices higher.

Saylor encourages the audience to explore Bitcoin’s long-term outlook using available models, sharing his own forecasts for Bitcoin’s growth over the next 21 years. He anticipates that Bitcoin will continue to outperform other asset classes.

He outlines his expectations for various asset classes, predicting that Bitcoin will grow rapidly while gold will gradually lose value. Saylor emphasizes that those who do not invest in Bitcoin will miss out on significant financial opportunities.

Saylor describes MicroStrategy as the first and largest Bitcoin Treasury company, focusing on acquiring Bitcoin and leveraging it to enhance shareholder value. He highlights the company’s consistent purchasing strategy, regardless of market fluctuations.

He discusses the benefits of leveraging Bitcoin investments, suggesting that the only thing better than owning Bitcoin is owning more Bitcoin through intelligent leverage. Saylor emphasizes the importance of maintaining a strong asset position in Bitcoin.

Saylor compares MicroStrategy’s performance to that of leading companies in the S&P 500, asserting that they are outperforming many of them. He invites others to adopt his business model, which he believes is straightforward and replicable.

Saylor concludes by reiterating the potential of intelligent leverage in capital markets, emphasizing that it can create significant value for companies that adopt this approach.

The speaker discusses the advantages of copying a successful business model, emphasizing the concept of intelligent leverage. They highlight the current state of capital markets, describing them as unhealthy and toxic, particularly referencing US Treasuries. By arbitraging between low and high returns using leverage, one can potentially create a highly successful company.

The speaker claims that their performance surpasses that of the S&P 500 and Bitcoin, stating that even a novice investor in Bitcoin would outperform many established companies. They mention the “magnificent seven” companies, noting that they only beat 95% of the S&P, while many companies fail to beat the index. The speaker argues that volatility should be embraced rather than avoided, as it can lead to significant wealth for those who are already affluent.

The discussion shifts to the liquidity and open interest in the options market, with MicroStrategy being highlighted as a top company in these areas. The speaker describes MicroStrategy as a highly valuable and sought-after stock, comparing it to hot and radioactive materials, which can be seen as opportunities rather than risks. They use a ship analogy to explain their business model, where the weight above the waterline represents Bitcoin and the weight below represents the risk management strategies employed.

The speaker challenges the notion that companies should only be valued based on their net assets, using Standard Oil as an example of a company that adds value beyond its reserves. They explain that MicroStrategy refines “crude capital,” creating products that appeal to risk-averse investors who desire Bitcoin-like returns without the associated risks. The speaker notes that MicroStrategy leads in issuing Bitcoin-backed bonds, offering higher returns compared to direct Bitcoin investments, thus providing a safer alternative for investors.

A key performance indicator called BTC yield is introduced, which measures the increase in Bitcoin per share. The company has reportedly increased Bitcoin per share by 26.4%, translating to nearly 50,000 Bitcoin. They mention a significant capital raise of $21 billion, part of a larger $42 billion plan aimed at acquiring more Bitcoin.

The speaker transitions to discussing the political landscape, referencing a “red wave” where Republicans have gained control of the House, Senate, and White House. They suggest that this political shift is about restoring freedom, with Elon Musk being a key figure advocating for Bitcoin and crypto. The implications of this political change include a potential framework for digital assets, promoting institutional adoption, and favorable tax laws for the crypto industry.

The speaker envisions a “crypto renaissance,” arguing that traditional capital markets are outdated and failing the public. They criticize the current market structures as being based on obsolete techniques from the 20th century, which limit access and create barriers for companies. The speaker highlights the excessive costs and complexities involved in going public, which deter many companies from entering the market.

They present a chart showing the decline in the number of publicly listed companies in the US over the past 25 years, likening it to other obsolete products. The speaker argues that a healthy economy should not exhibit such downward trends, suggesting that the current state of public companies reflects a failing economic system