The Math Behind MicroStrategy’s Bitcoin Leverage Strategy

The dumbest interview of all time

A few direct quotes:

• “We’re building an indestructible balance sheet.”

• “These preferreds are a very low-risk way to add leverage and amplify the premium in MSTR.”

• And the big one:

“I’m comfortable projecting 30% annual returns on Bitcoin for the next 20 years.”

Let’s walk through the actual mechanics of what MSTR now looks like:

This structure works only in one scenario:

➡️ Bitcoin goes up a lot, every year, for decades.

Anything else creates major problems:

What’s being presented as a “fortified balance sheet” is really a highly levered carry trade tied to an asset with no cash flows, no yield, and no intrinsic economic engine behind it.

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