Explained: Why Michael Saylor Issued Convertible Debt To Buy More Bitcoin? скачать в хорошем качестве

Explained: Why Michael Saylor Issued Convertible Debt To Buy More Bitcoin?

On today’s show, billionaire Michael Saylor discusses his big move into Bitcoin. Additionally, he goes into detail on why he issued convertible debt to buy more bitcoin. Preston Pysh So a person who’s hearing that, because we have people that listen to the show that look at Bitcoin, they look at the volatility, they haven’t done the research that you’ve obviously done on Bitcoin, and they’re saying, “This sounds really risky what you’re describing.” What’s your best advice for that person who’s hearing this saying, “This guy is obviously smart. I know he’s smart. I can hear he’s smart, but I just don’t necessarily trust Bitcoin.” What do you say to that person? Michael Saylor Yeah, so let’s talk about the risk. So, first of all, with regard to debt, there’s intelligent debt and there’s unintelligent debt. I think it’s pretty foolish to go and buy Bitcoin on an exchange with 10 or 20 X leverage on margin loans, where you could be liquidated on a big move down or up. You don’t do that, right? If you’re going to make an investment, you want permanent capital or permanent debt that’s not marked to market. So for example, would I borrow money for 30 years at two and a half percent interest to buy a house? Yeah. Doesn’t everybody? Isn’t that the American dream? Is that risky? No. What makes it risky? Well, if the interest rate might spike up and it’s not a fixed interest rate, that might be a bit risky. Michael Saylor If the house gets marked to market every day and some banker shows up on Monday and says, “I think your house is only worth half of what you paid for it, and now you owe us $400,000. I need the check before I leave.” And you don’t have $400,000, you’re you’re ruined and bankrupt. That’s risky. So if you borrow money against an asset which is not being marked to market at a fixed or well understood affordable interest rate, and it’s not going to come due for a period of time, then it’s a lot less risky. So if you borrow money overnight in the repo market like Shearson Lehman, did, and then you buy risky stuff, then you might get ruined on a Monday morning when the market moves against you. Michael Saylor So I’ll tell you how we thought about it at my farm. We’re borrowing money for five years and a convert. It’s an unsecured loan. There are no covenants against it. It can’t be called for five years. So we’ve got the use of the money for five years. It’s not marked to any market. It’s not marked to our stock. It’s not marked to the price of Bitcoin. There aren’t any covenants that we have to test against. There are no cashflow covenants to trip over. And there’s none of these complications. So it’s basically a large pool of money. The interest rate is fixed at 75 basis points. So the interest rate is diminimous. And we’re buying an asset with it that we believe is accretive. Now, is Bitcoin volatile. It’s volatile day today, but you can’t find a period of five years over the history of Bitcoin where it wasn’t worth more at the end of the five years, right? Michael Saylor There is no, there is no period where you could have bought Bitcoin and it was worth less money five years later, right? I mean, at this point, some people that bought at the very top in 2017, they had to wait three years. There’s a 1% probability that you might wait three years, but that’s in the past. So the volatility of Bitcoin day to day, week to week, month to month, doesn’t really have much impact. The only real question is, do you think it’s going to go up? Will it be worth more than I bought it in five years? Subscribe to We Study Billionaires podcast show: https://open.spotify.com/show/28RHOkX... To access our show notes, courses or forums, go to theinvestorspodcast.com. ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ADDITIONAL INVESTING RESOURCES: Ask the Investors:    • Плейлист   Asset Allocation Course:    • Asset Allocation Course   Real Estate Investing:    • 💸 Millennial Investing 🎯   Millennial Investing:    • Millennial Investing Explained   ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ Download Stig & Preston's 1-page checklist for finding great stock picks: https://www.theinvestorspodcast.com/f... Have a question? Get your voice heard on the show: https://www.theinvestorspodcast.com/y... ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.