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Friend,
I just sat down with Michael Saylor for nearly two hours in Washington, D.C.
And he revealed something that changes everything we thought we knew about building wealth in the digital age.
It's not about buying Bitcoin and holding it.
It's about something far more sophisticated — and far more profitable.
> The $30 Trillion Opportunity Hiding in Plain Sight
Most people think Bitcoin treasury companies just buy Bitcoin and wait.
Wrong.
Saylor explained that the real innovation isn't holding digital capital — it's creating digital credit on top of it.
Here's what that means:
Traditional companies issue debt because they're desperate for cash.
They need to build factories, develop products, or cover losses.
But Bitcoin treasury companies flip this model entirely.
They issue credit instruments as the product itself.
Think about it: When Boeing issues a bond, the product is the airplane.
The debt is just a necessary evil to build it.
When a Bitcoin treasury company issues preferred stock or credit instruments, the credit IS the product.
> Why This Changes Everything
Saylor broke down something most investors completely miss:
Right now, $30 trillion sits in U.S. bank accounts and money markets earning 2-4% annually.
Meanwhile, inflation eats away 3-4% of purchasing power every year.
You're guaranteed to lose money by "playing it safe."
But here's where it gets interesting:
By holding Bitcoin as collateral (which historically appreciates 30-50% annually), companies can issue credit instruments that pay 10-12% yields to investors.
The math is simple but profound:
- Bitcoin appreciates at 30%+ annually
- Credit instruments cost 10% annually
- The company captures a 20%+ spread
And the investor?
They get 3-4x the yield of a traditional bank account, backed by over-collateralized Bitcoin reserves.
> The "Kerosene" of Digital Assets
Saylor used a fascinating metaphor from Standard Oil.
When Standard Oil refined crude oil, they created dozens of products: gasoline, diesel, plastics, nylon, jet fuel.
But the most refined, highest-value product was kerosene — pure liquid energy.
In the Bitcoin ecosystem, the "kerosene" is what Saylor calls Treasury Preferred Credit instruments.
These are short-duration (1-month), low-volatility instruments that strip away Bitcoin's price swings while extracting pure yield.
Imagine a bank account that:
- Pays 10% annually (vs. 4% at traditional banks)
- Has minimal price volatility (±50 basis points, not ±20%)
- Is backed by 5-10x over-collateralized Bitcoin reserves
- Offers tax-deferred returns through return of capital structure
This isn't theoretical.
Strategy has already issued four different credit instruments in 2025, and their latest — stretch (STRF) — had the largest IPO of the year.
Why?
Because it solves a problem 250 million retirees face globally:
How do I generate enough income to live on without taking massive risk?
> The Cambrian Explosion Is Coming
Here's what most people don't realize:
There will be a Cambrian explosion of Bitcoin treasury companies in the next 3-5 years.
Saylor explained that the market can support 1,000+ companies doing variations of this model:
- Geographic markets (U.S., Japan, Europe, Brazil, Korea, UAE, etc.)
- Different credit instruments (bonds, preferreds, convertibles, insurance products)
- Various duration targets (1-month to perpetual)
- Multiple currency denominations (USD, EUR, JPY, GBP, etc.)
- Specialized distribution channels (retail, institutional, pension funds, endowments)
Each represents a multi-billion dollar opportunity.
And unlike traditional businesses that take years to build, digital credit products can be tested and scaled in days.
As Saylor put it: "We're literally selling $50-100 million an hour and buying Bitcoin the same hour. We could do $1 billion of capital raising in a day."
The investment cycle is 1,000x faster than real estate, oil & gas, or any traditional business.
> Why Now?
We're at an inflection point.
Five critical shifts just converged:
Shift #1: Regulatory reversal
Under Trump, Gary Gensler was fired, SAB121 was rescinded, and the Fed is now telling banks they can move into Bitcoin.
Shift #2: Bitcoin counts for mortgages
Fannie Mae and Freddie Mac now formally consider Bitcoin as an asset in mortgage risk assessments.
Shift #3: Banks can lend against Bitcoin
Major institutions are opening multi-billion dollar credit lines for Bitcoin holders to borrow against their holdings without selling.
Shift #4: Wall Street's $300 trillion flood
The fixed-income markets (bonds, pensions, 401ks) are creating "straws" into Bitcoin through ETFs and treasury companies.
Shift #5: Parabolic adoption phase
Bitcoin is accelerating through the S-curve. The time from 10% to 90% adoption happens as fast as 0% to 10%.
As Saylor explained: "The regulatory winds that were holding Bitcoin back — like a beach ball held underwater — have been removed. That beach ball is shooting to the surface."
> The Real Innovation: Building Better Money
But here's what struck me most about this conversation:
Saylor isn't just building a company.
He's pioneering a new category: The Bitcoin Treasury Company.
These aren't ETFs. They're not banks. They're not traditional holding companies.
They're digital capital refineries that transform Bitcoin's high volatility into low-volatility, high-yield credit instruments.
And the beauty?
There are no losers here — except the 20th century oligopoly selling inferior credit instruments.
- Retirees get 10%+ yields instead of 2-4%
- Companies get better treasury returns than holding cash
- Investors get Bitcoin exposure without volatility
- The economy gets more efficient capital allocation
Everyone wins.
> What This Means For You
Whether you're an investor, entrepreneur, or just someone trying to build wealth:
This is the opportunity of the decade.
The companies that master digital credit issuance will become the next generation of financial titans.
The investors who recognize this shift early will capture asymmetric returns.
And the individuals who position themselves in these instruments will finally get the retirement income they deserve.
> Want the Full Story?
This newsletter barely scratches the surface of what Saylor revealed.
In the full interview, he breaks down:
- The exact credit instruments Strategy issued and why
- How to calculate the "Bitcoin Factor" for treasury companies
- Why perpetual preferred stock is superior to bonds
- The mathematical framework for leverage without risk
- How his MIT engineering background helps him see Bitcoin differently
- Why simple products will win (and complex ones will fail)
- The specific regulatory changes that unlocked this opportunity
Listen to the full 2-hour conversation here →
Trust me — if you're serious about understanding where Bitcoin and digital finance are headed, this is required listening.
To your success,
Mark
P.S. Saylor made one point that stopped me cold: "Most people think Bitcoin treasury companies just buy Bitcoin. Wrong. We're selling credit. The credit is the product. That's the business."
If that doesn't click yet, listen to the full interview. When it does, you'll see the next 20 years of financial markets completely differently.
Access the full Michael Saylor interview →
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