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The MicroStrategy Hit Job EXPLAINED (It All Makes Sense Now) | Bitcoin Simply · Simply Bitcoin

• 0:00
  The MicroStrategy hit job we've been talking about might have
• 0:02
  been real. JP Morgan and Morgan Stanley
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  just launched leverage Bitcoin back products tied to
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  Blackrock's I bit. This is right after freezing
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  MicroStrategy transfers and increasing margin requirements
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  to 95%. You can't make this up.
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  They didn't just compete with Sailor, they kneecap them first.
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  This timeline checks out and it looks like a coordinated setup.
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  We're going to break it down today.
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  This is Dante Cook with Bitcoin. Simply, let's go.
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  All of the mainstream media fight against MicroStrategy
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  started in May when famous hedge fund investor Jim Chanos came on
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  TV talking about his short MicroStrategy trade.
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  Michael Saylor is a wonderful salesman, but that's what he is.
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  He's a salesman and what he's selling investors is the concept
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  that you give me your money and I'm just going to go buy Bitcoin
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  and hopefully the value of my stock trades at a premium to the
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  value of that Bitcoin. And so as long as I can keep
• 0:57
  doing that, I generate value. And this is of course, I called
• 1:01
  it financial gibberish because on top of that, he's also said
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  in your interview, he said the company should not just be
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  valued on the basis of my, of the Bitcoin holdings, but on a
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  multiple of the profits that accrue from when I do this
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  financial alchemy. And I, I pointed out on social
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  media, I said, well, that's akin to saying, well, my house that
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  rose in value from 450,000 to $500,000 last year is not worth
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  500,000. It's worth one and a half
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  million because it's worth the 500,000 plus a 20 multiple on
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  the $50,000 increase. And of course that's absurd, but
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  that's the claim he's making. And let me just interject really
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  importantly here. I'm actually doing what he is
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  advocating, right? I am selling micro strategy
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  securities to buy Bitcoin. Let's be clear, it's a hedge
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  trade. I don't know where Bitcoin is
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  going to go. And it doesn't matter to you
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  actually. Well, it doesn't matter.
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  The premium compressing matters. To me.
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  It's important to understand that in 2024 and 2025, mostly at
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  the end of 24 and 25, micro strategy has sold $35 billion
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  roughly of securities, 33 billion in common and
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  convertible into common and 2 billion in preferred.
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  Most recently, the market for the preferred stock that he's
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  selling is tiny relative to common.
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  Let's be clear about that. And in his own words that you
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  just played back, he makes a case that you have to be crazy
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  to buy these preferreds, right? He's going to pay you a
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  dividend. Maybe it's, it's not redeemable,
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  it's perpetual. And if I don't pay the
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  dividends, they're not cumulative.
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  I don't have to pay the back dividends.
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  So you know who in their right mind institutionally would buy
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  these preferreds? He called it a hedge, but what
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  we know about big banks in their control of the media, we know
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  that this was a market SIOP in the beginning.
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  Fast forward to July, margin requirements on micro strategy
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  increased from 50% to 95%. Fewer buyers, less liquidity,
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  prices drop. And right when the pressure
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  peaked behind closed doors on August 29th, JP Morgan launched
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  A leveraged auto call I bit product.
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  They promised investors a 16% return if I bit hits the preset
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  price. They promised up to 1.5 X gains
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  by 2028. So while they're making
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  MicroStrategy look risky, they're pitching their compliant
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  safe investment products that they're going to make fees on
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  whether it goes up or whether it goes down.
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  On October 10th, MCI announces a consultation extension just 16
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  minutes before Trump's speech, causing a flash crash in
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  MicroStrategy and Bitcoin. And what they said is they're
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  deeming that these digital asset treasury companies as
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  potentially risky and will need further consultation that they
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  will announce later in January, causing the market to be
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  spooked. Four days later, Morgan Stanley
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  Rakes in over $100 million after the price crashes on their new
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  leveraged product. November 14th, JP Morgan
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  officially files for their own. November 20th, they launched
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  their own prospectus on this new product.
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  In detail, they launched their hit campaign on the potential
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  MSTRD listing. That's not a coincidence.
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  That's called choreography. Sailor knows this, and This is
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  why he's been out campaigning digital credit in digital bonds
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  for the last several months. Everybody in the room is at the
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  beginning year one of the creation of digital credit and
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  and you can go out there and brag.
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  The most successful corporate bonds in the last five years are
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  digital bonds. The most successful convertible
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  bonds are digital bonds. The most successful preferred
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  instruments are digital. When you put Bitcoin, when you
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  put a collateral asset appreciating at 50% a year and
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  even 30%, even if it's 20%, the truth is if Bitcoin only
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  appreciated at the rate of the S&P, every single credit
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  instrument built on top of it would outperform every other
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  credit instrument because every other credit instrument I just
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  named the collateral underperforms the S&P.
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  So we're on the verge of the creation of a digital credit
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  market that right now it looks like 20-30 billion a year.
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  By the way, that's a throwaway. It's 30 billion a year and no
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  one's noticed it exists yet. It's 30 billion a year.
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  And the Wall Street Journal and the New York Times and for they
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  haven't noticed it exists yet, but we're about to go to 50
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  billion and 100 billion and 200 billion.
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  And so think about a trillion dollars of credit.
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  And when it's a trillion dollars of credit, it's not 1% of the
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  credit in the world and people still don't notice it exists.
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  And so the real opportunity for all these companies is to issue
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  billions than 10s of billions and hundreds of billions of
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  digital credit. And the reason that your equity
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  is going to go to the moon is because the equity is going to
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  be valued based upon the spread between the credit you're
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  selling and the underlying asset you're buying.
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  And you'll be able to capture that with massive amount of
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  leverage. The more credit you issue, the
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  faster the credit you issue, and the better the credit terms, the
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  more valuable the equity is going to get.
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  He's promoting that they're the best company to sell structured
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  products on top of Bitcoin as a collateralized asset.
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  He also has been pushing back against the MSCI, saying that
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  strategy is not a fun, it's not a trust, it's not a holding
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  company. They're a publicly traded
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  operating company with $500 million software business and a
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  unique treasury strategy that uses Bitcoin as productive
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  capital. They've launched their own
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  products representing $7.7 billion in value, saying that
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  they're not a passive or a holding company.
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  And all of this is leading to this tweet where he's talking
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  about strategy bank. What would it look like if a
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  bank were managed by a Bitcoin company?
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  This is the new battleground. If you zoom out and look at the
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  larger picture, when you look at the buyers of U.S.
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  Treasuries, China and Japan are now dumping their U.S.
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  Treasuries historically to what they've owned.
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  China's share of U.S. Treasuries is now 7.6%, in Japan
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  just 12.9%. And this means that the US
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  banking system needs new collateral.
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  Bitcoin and Bitcoin backed products are becoming the
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  lifeline. I bit has already displayed
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  this, generating more fees in revenue from their I bit product
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  than they have any other product of their 13,000 products that
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  they have out there in the market.
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  How many times can you say product in seven seconds, Dante?
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  They need to own it and that's what strategy is prepared for.
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  That is what this whole strategy bank offering is about
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  potentially and JP Morgan, they're not just going to sit on
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  the sidelines while this happened.
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  They want Bitcoin as the prime asset to build products on top
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  of. They want to join the same game
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  without the same track record or backing as a company like like
• 7:30
  letting who's been doing this since 2018, allowing you to post
• 7:34
  Bitcoin as collateral and they will lend against it up to 50%
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  loan to value. They've issued over $9 billion
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  worth of loans to 10s of thousands of customers and do
• 7:43
  this fast, simply, seamlessly, transparently and in a way that
• 7:47
  provides trust. They've been one of the first
• 7:49
  digital lenders to do a proof of assets.
• 7:51
  You can actually look at the address of where your Bitcoin is
• 7:54
  when you post it as collateral. There's no credit checks and
• 7:56
  loan started just 12.4%. You can repay them anytime a
• 8:00
  lump sum amount. Go to learn dot Lennon dot AO
• 8:03
  slash simply to get started with .25% off of your first loan.
• 8:07
  One of the ways we can remove JP Morgan central bankers in the
• 8:10
  Fiat industrial complex from the system overall is by removing
• 8:14
  our Bitcoin from exchanges. They can't create products on
• 8:16
  top of Bitcoin that isn't there, and it is going to be there if
• 8:20
  you leave it on the exchange or in the bank or in one of these
• 8:22
  products. You have to understand what's
• 8:24
  going to happen in the future when they need to reclaim or
• 8:27
  recapitalize the system where they're going to do it with your
• 8:29
  Bitcoin, the capital created out of thin air that hasn't been a
• 8:32
  part of the Fiat system, you will be the new monetization if
• 8:35
  you don't learn how to take custody of your Bitcoin.
• 8:37
  Schedule a free 30 minute consultation with the team at
• 8:39
  the bitcoinway.com/simply Bitcoin so that this won't
• 8:43
  happen to you. They say it's all about
• 8:45
  volatility. They say the MicroStrategy was
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  over levered, but now we know. We understand that they have
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  been trying to monetize Bitcoin and now the $318 trillion bond
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  market. This is a coordinated play to
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  redirect capital and to have all of the inner workings of Bitcoin
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  between 5 bit and them on the inside.
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  The game behind closed doors, the game that we can't see on
• 9:06
  the decentralized open source network.
• 9:08
  This is why Jerome Powell's speech on banks being able to
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  offer crypto products was so important.
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  So our, our role with Bitcoin really is to look at, with
• 9:18
  crypto really is to look at the banks.
• 9:21
  And, and you know, we, we think it's, you know, banks are
• 9:25
  perfectly able to serve crypto customers as long as they
• 9:30
  understand and can manage the risks and it's safe, safe and
• 9:32
  sound as many of our, a good number of our banks, right, that
• 9:35
  we regulate and supervise. Do that, you know, the threshold
• 9:40
  has been a little higher for banks engaging in crypto
• 9:42
  activities and that's because they're so new.
• 9:45
  And you know, we don't want to make the mistake.
• 9:47
  You're if you if you're making a choice to conduct that activity
• 9:50
  inside a bank, which is inside the federal safety net with
• 9:54
  Deposit Insurance, then you want to be pretty sure that that that
• 9:58
  it's a safe and sound activity. So, you know, we're, we're not
• 10:02
  against innovation and we certainly don't want to to take
• 10:06
  actions that would cause banks to, you know, to terminate
• 10:10
  customers who are perfectly legal.
• 10:12
  Volatility will now be more part of a game with Bitcoin than it
• 10:16
  ever has before. John Kudinas, Kalamo's CEO, says
• 10:19
  that volatility is a feature and not a bug of Bitcoin, and it's
• 10:23
  here to stay. Look.
• 10:24
  Since 2012, there's been over 16 times that bitcoins gone down
• 10:31
  more than 30%. Nineteen times more than 20
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  percent, 33 times more than 10%. It's volatile.
• 10:39
  It's going to continue to be volatile.
• 10:42
  Might be a little bit less, but it's, you know, we've seen that
• 10:45
  right now. Having said that, it's here to
• 10:48
  stay. It's going up.
• 10:50
  That's why we've launched 100% protected, 90% protected, and
• 10:55
  80% protected Bitcoin for people given their risk appetite to
• 11:00
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• 11:03
  well, especially in the last drawdown, it said.
• 11:06
  Some of the stuff that we've launched, they performed really
• 11:10
  well versus this last 30% drawdown on Bitcoin.
• 11:14
  The new frontier of Bitcoin is playing out in front of us and
• 11:17
  are you going to be able to stomach the risk as these big
• 11:19
  institutions get in the game and try to manipulate Bitcoin and
• 11:23
  Bitcoin focused products? You have to understand the
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