A 5-Year-Old’s Walkthrough of Michael Saylor’s Strategy (MicroStrategy) Bitcoin Business Model 👀 @coffeebreak_YT 👉Step 1: What is a company and its “stock”? A company is like a lemonade stand. The owner sells little pieces of the stand to people. Those pieces are called “shares” or “common stock.” If the stand does well, the people who own shares get happy because their pieces become worth more money. 👉Step 2: Strategy is the company Strategy (ticker $MSTR, used to be called MicroStrategy) is a real company. It used to sell computer programs. Now that part only makes about $110–130 million every three months — not a ton. 👉Step 3: Michael Saylor is the boss He LOVES Bitcoin. Bitcoin is like magic digital gold. Its price goes up and down a lot, but Saylor thinks it will keep going up forever. 👉Step 4: The big plan The company already owns a HUGE pile of Bitcoin — 766,970 Bitcoins right now, more than almost any other company. Saylor’s plan is simple: keep buying MORE Bitcoin forever and ever. 👉Step 5: The money trick — “preferred stock” The company doesn’t make enough money from selling programs to buy all that extra Bitcoin. So they use a clever trick. They sell something called “preferred stock” (especially the STRC “Stretch” series and others) to rich people and big money funds. Here’s what it means in kid words: Rich people hand the company a giant pile of cash RIGHT NOW. In return, the company promises: “Every single year, we will pay you back about 8% to 11.5% of that money — like super-high allowance.” (The main Stretch one is currently at 11.5%.) 👉Step 6: What do they do with the new cash? They take ALL that fresh cash and buy even MORE Bitcoin. The company’s Bitcoin pile gets bigger and bigger. 👉Step 7: Now there’s a yearly bill Every year the company has to pay hundreds of millions of dollars (around $800–900 million right now, and it grows) to those rich preferred-stock people. The computer-program business does NOT make that much real cash. So how do they pay? 👉Step 8: The secret way they pay the bill The company’s regular shares (the normal stock you or I could buy) often sell for a high price compared to the Bitcoin it owns. Why? Because everyone knows Saylor will keep buying Bitcoin forever, so people get excited and pay extra for the stock. They sell just a few of those regular shares to new buyers (or sell more preferred stock). They use that money to pay the 8–11.5% owed to the preferred-stock people. They only have to sell a tiny bit when the stock price is high enough. They also built a $2.25 billion cash safety pile to help cover payments for a while. 👉Step 9: Why this is like a super-charged rocket for regular shareholders If you own the normal $MSTR stock (not the preferred stuff), here’s what you get: • The company keeps buying more and more Bitcoin using other people’s money. • You still own the same number of shares, but now each share controls more Bitcoin than before. • If Bitcoin price goes up a lot over time, you win HUGE. • The yearly cost is only about 8–11.5%. As long as Bitcoin grows faster than that in the long run, the normal shareholders come out way ahead. 👉Step 10: Not a Ponzi Strategy turned itself into a Bitcoin-buying machine. They get money from rich people at 8–11.5% interest (via preferred stock), use it to buy Bitcoin, and cover the cost by selling a little bit of their own stock when it’s expensive. It’s like using a credit card that charges 11% to buy gold that grows 20% a year — and the regular shareholders keep almost all the extra profit. @saylor @MicroStrategy