About a year ago, I wrote about MicroStrategy and got so much hate from the Bitcoin fanatics

I had no idea what the price of Bitcoin would do and I still have no idea what it will do in the future

The thing that bothered me was how Michael Saylor was talking about it as some sort of sure-thing

I merely tried to point out that investors would lose a lot of money with this capital structure if Bitcoin didn’t keep going up

This was the post:

The dumbest interview of all time

Michael Saylor was ecstatic as he explained why MicroStrategy decided to issue 10% preferred stock… to buy even more Bitcoin.

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:

• Minimal operating income
• More than $2B of existing debt
• Ongoing dilution from stock issuance
• And now a permanent 10% preferred payout layered on top of a massively volatile asset

This structure works only in one scenario:

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

Anything else creates major problems:

• If BTC trades flat: a 10% fixed payout grinds the company down.
• If BTC draws down: equity gets obliterated due to the leverage stack.
• If BTC crashes: the whole structure is insolvent.

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.