For Tesla investors the idea that AI & Robotics are going to upend the virtual and physical worlds is obvious.
For Strategy investors the idea that Bitcoin is disrupting money, the bond market and physical real estate is equally as obvious.
Effectively they are a one-two punch at the status quo. Here's one example: Strategy's higher yielding preferred stocks draw capital from Ford and GM's bonds. Tesla's Robotaxi hurts Ford and GM financially. Ford and GM's bonds become even less attractive as the financials that support them crumble. Capital flees deteriorating assets and flows to stronger assets. Rinse and repeat. In this way Musk Inc. and Saylor Inc. become a synergistic disruption machine.
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Strategy, the World's largest corporate holder of Bitcoin, has now acquired a total of 597,325 Bitcoin (as of June 30, 2025) worth over $63 billion at last purchase. A fiat money vacuum: So far this year, Strategy has issued stock, convertible debt, and more recently, three different preferred stocks. By issuing various Bitcoin-backed securities Strategy is pulling money from the bond market, and from other investments like real estate, cash, gold and equities - with this capital all flowing into Bitcoin - so that Strategy can issue more Bitcoin-backed securities! So far this year, the number of Bitcoin per share has increased by 19.7%.
If you own MSTR shares, your Bitcoin holdings have increased over time without you investing more money. This doesn't happen if you purchase Bitcoin directly or if you buy a Bitcoin ETF (where you actually lose some Bitcoin per share over time due to fees).
If we annualize the year-to-date number the growth in Bitcoin per share would hit 43.7% by year-end (not a prediction, just math). Since November, 2024 Strategy has purchased $32.5 billion in Bitcoin by making regular purchases (generally weekly) since they announced their 21/21 plan (a three-year plan to sell $21 billion in additional equity and $21 billion in fixed-income securities, and use all of the money raised to buy more Bitcoin). That capital plan has since been doubled - now called the 42/42 plan - to $84 billion.
With the first Bitcoin purchase made on August 11, 2020, the company has since made 72 purchases of Bitcoin (and one small sale of 704 Bitcoin on Dec 22, 2022). continued...
