MSTR's value rests on producing digital credit: if the credit works and returns to par, MSTR should outperform Bitcoin by 1.2-1.5x and trade at a premium to net asset value; if the credit fails, MSTR is just a Bitcoin holding company trading around NAV.

There are many ways to invest in Bitcoin, but why MSTRC or MSTR specifically instead of spot ETFs?

On the other hand, if you believe in Bitcoin, specifically digital credit, and want to own a company that creates digital credit or want to double your Bitcoin returns, you can buy digital stocks like MSTR where you get performance equivalent to 1.2 or 1.5 times that of Bitcoin, and you can outperform it.

today we have a $1 billion buyback program to repurchase our common stock, enabling us to sell or buy MSTR at any time.

Yes, because the company is a producer of digital credit. Our product is digital credit. What we do is convert capital, Bitcoin, 40 volatility, 40 annual recurring returns into credit with five volatility or in this case eight volatility that pays you a return of 12%.

There is a group of investors who want to buy this credit. No , you know, would you want to hold onto a volatile asset for ten years with no cash flow? Okay . Not if you're paying rent.

Not if you have a mortgage. Therefore, the credit investor group is different. We create this credit.

Therefore, if the credit does not work, the company will simply be a Bitcoin holding company. Okay . So, you know, it's like saying, if I have a bank and you can deposit your money in it, but you can never withdraw it, what is the value of the shares of that bank? Okay . As you know?

So, what we are doing is creating a very valuable product, which is digital credit. If the credit is successful, we can sell billions of dollars of it.

When we sell $1 billion of digital credit, all we have to do is see Bitcoin exceed the required rate of return. The required rate of return is approximately 10.5%. Let 's assume we sold $1 billion of credit, the price of Bitcoin rose by 10% annually, and the company earned a net income of $1 billion. Well, we will never pay this amount .

Now imagine a world where we sell $10 billion of credit annually, and the price of Bitcoin rises by 10.5% annually. This is similar to a company that generates a net income of $10 billion.

Now, imagine that this income grows by 20% or 30% annually. What is the value of this company? It could be worth 10 or 20 times net income. This is the net asset value premium.

In short, the value of equity lies in a company's ability to issue credit. Credit is considered valuable if it returns to its nominal value . If the company does not restore the credit to its nominal value, we will not be able to sell any more of it.

This is like a bank that takes your deposits and never returns them. As you know, no one will deal with this bank.

On the other hand , what is the point of creating a company capable of selling $20 billion in credit that grows at 30 % annually forever? correct? I mean, the company could become a trillion-dollar company.

So, the future of MSTR is based on converting capital, Bitcoin, into credit, digital credit, so that you have digital shares.

Stocks will outperform Bitcoin if credit is good. Therefore, credit is the product, and equity is the byproduct. It is better for our capital to repurchase credit because if the credit is effective, the company that can trade it will trade at a premium to the net asset value.

If we let credit disappear, we will be nothing more than a holding company, and the company will trade up or down X around its net asset value. That's why we advocate for credit.