This episode explores MicroStrategy's recent preferred stock issuances (STRK and STRF) and their implications for the company's Bitcoin acquisition strategy. Host Preston Pysh interviews Jesse Myers, CIO of OnRamp, to analyze MicroStrategy's approach. Against the backdrop of a $900 trillion global asset landscape, Myers explains MicroStrategy's aim to attract capital from the bond market, offering higher yields than traditional fixed-income instruments. More significantly, the discussion details MicroStrategy's "Bitcoin Treasury playbook," leveraging various financial tools (convertible notes, preferred stock) to acquire Bitcoin, even using newly issued debt to service existing debt. For instance, the "Perpetual Strife" offering, a perpetual preferred stock, aims to tap into the fixed-income market's vast capital pool. This strategy, while potentially viewed as dilutive by some, is framed as a "speculative attack" on bonds, accelerating capital flow into Bitcoin. Ultimately, the conversation highlights the potential for Bitcoin to become a dominant store of value, drawing significant capital from traditional assets, and the innovative financial engineering employed by MicroStrategy to facilitate this shift.
