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Inside Michael Saylor's Most Dangerous Bitcoin Move Yet! | Truth Block · Simply Bitcoin

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  The success of this product is going to be its own downfall.
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  We're seeing the two hemispheres of the industry, crypto and
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  Bitcoin, come together. Do you think it's realistic for
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  Bitcoin to cost $36 million in 2076?
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  Yes. Last week Michael Saylor shocked
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  the world by announcing that strategy will likely sell
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  Bitcoin this week they bought another 535 coins and with STR
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  CS ex dividend date this Friday, we could be in for another
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  massive week. Today I'm going to show you why
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  the selling controversy was never what it looked like and
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  why when you line up every move sailor has made this year, it
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  all points at one target that changes the game for Bitcoin
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  forever. And while everyone is arguing
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  about selling, something else is happening quietly underneath.
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  A system is being built on top of sailors products that merges
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  Bitcoin and and he's not just allowing it.
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  He's welcoming and it could set up the next leverage unwind
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  disaster. This is truth block.
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  I'm Hurley. Let's mind truth.
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  Hey guys, before we dive in, I just want to let you know that
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  we're building something really exciting.
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  It's simply Bitcoin that you won't want to miss.
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  Scan the QR code below to learn more and be one of the 1st to
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  see what's coming. All right, let's start by
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  closing the loop on the Sailor and Strategy selling controversy
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  from last week. Strategy has still yet to sell
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  any Bitcoin. Instead, they announced another
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  buy this morning, 535 more Bitcoin, which brings the
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  company's total holdings to 818,869 BTC.
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  Sailor sat down with David Lynn at Consensus 2026 and put
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  everything to rest in one line. I'm very famous for saying never
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  sell you Bitcoin and that's why the Internet went crazy when we
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  said we might sell it. But if I was being more precise,
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  I'd say never be a net seller of Bitcoin.
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  It just wouldn't have been so viral or so catchy to say never
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  be a net seller of Bitcoin. I think that in these periods,
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  even if we were to sell one Bitcoin, we'd be buying 10 to 20
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  more Bitcoin. So you're really talking about a
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  situation where we buy 10 bitcoins, sell one Bitcoin, buy
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  9 net Bitcoin and continue to create Bitcoin.
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  It's it should be a non issue after people understand it, but
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  right now it's a colorful area of commentary.
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  So he switched from never sell Bitcoin to never be a net
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  seller. That's the policy and the reason
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  he said it. It all has nothing to do with
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  conviction fading. It has everything to do with the
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  S&P 500. When S&P Global gave Strategy AB
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  minus credit rating last year, it came with a checklist of
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  three things they want to see for an upgrade in the future.
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  One, better dollar liquidity, 2, less reliance on convertible
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  debt, and three, proof that strategy can access capital
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  markets when Bitcoin is under pressure.
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  And buried in that document, S&P calls strategy's reluctance to
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  sell Bitcoin a weakness. So Sailor signals he's willing
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  to sell. That's the third box.
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  SDRC replaces convertible debt, that's the second box.
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  Tax loss harvesting generates dollar liquidity.
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  That's the first box. So the payoff of everything
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  Sailor has been working towards the last year is a credit
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  upgrade, which opens $4.9 trillion of addressable credit
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  Market investment grade would open $23.6 trillion.
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  So the real end game here is the S&P 500.
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  The sell signal, the credit pursuit, STRC generating
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  revenue. All of it is engineering a
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  company that looks like a legitimate company to the index
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  committee because S&P 500 inclusion means passive index
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  fund flows. Every single move this man makes
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  has one purpose. Stack more Bitcoin at all costs,
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  and he isn't stopping there. At Consensus 2026, speaking to
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  The Wolf of Wall Street Scott Milker, he described what's
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  being built on top of STRC. I'll be speaking about how we
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  created digital credit, which is exploded.
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  It's gone zero to 8 1/2 billion dollars in eight months and it's
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  growing 350% a year. So I'll speak about that
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  phenomenon. I'll talk about why that is
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  spreading through the Tranfi ecosystem and then I'm going to
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  talk a bit about digital money and digital yield.
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  How you can take stable coins and D5 protocols and loop that
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  credit 3X5X. So you either get a stable coin
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  or a yield coin that pays 8% or maybe you create a 25% three X
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  levered or, or looped digital yield token or digital yield
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  fund. And so I think what's fun right
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  now is digital credit is bringing the capital gains and
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  the power of Bitcoin to the, the crypto and the digital assets
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  ecosystem in the form of yield coins and defy.
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  And we're merging what we're seeing the two hemispheres of
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  the industry, crypto and Bitcoin come together.
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  So instead of having capital and crypto that never finds Bitcoin
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  and capital and Bitcoin that never goes into defy or or or
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  crypto industry. Now the capital flows in.
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  It flows the yield coins, it flows to digital credit, it
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  flows to Bitcoin, it loops back, and it invigorates the entire
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  industry. This one feels like a bit of a
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  head scratcher from a Bitcoin purist perspective.
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  This is the man who spent five years clearly differentiating
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  Bitcoin in crypto, saying there is no second best, and now he's
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  openly celebrating the convergence of Bitcoin and
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  crypto. I think Sailor sees it as plain
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  as day. Crypto is dying.
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  The speculation frenzy that used to live in altcoins and dog
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  tokens. That capital is migrating.
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  It's moving to leverage plays on stable coins in Bitcoin through
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  vehicles like STRC and MSTR. And Sailor is building the on
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  ramp and waving in the circus. He'll capture the frenzy and
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  convert every dollar of it into Bitcoin.
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  He doesn't care if the gamblers get burned.
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  And why should he? It's not his problem, he cares
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  that the Bitcoin ends up on his balance sheet.
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  It's shameless, but it's also kind of genius.
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  But the danger here is the likely scenario where the over
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  levered gamblers get burned. Which brings us back to
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  Coffeezilla. 2 days ago, Coffeezilla debated Jeff Walton,
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  chief Risk officer at Strive. They talked for over an hour
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  about whether these products are sustainable.
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  Now this debate came on the heels of Coffee Zilla making a
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  couple videos exposing STRC to what he sees as a dangerous
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  yield scam on par with Tara Luna.
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  We covered those claims in an episode a few weeks ago that you
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  can check out here. So the debate was essentially a
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  professional YouTube versus a digital finance expert.
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  So you can guess how it went. But here's one moment worth
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  paying attention to Let. Me say this, let me say this,
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  Jeff, I, I, I will agree that I, I look at this product and I
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  think about, you know, how people think about yield.
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  I think that it's going to catch on enormously.
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  I think that worries me deeply. I don't think I don't think it
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  and I actually think that the success of this product is going
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  to be its own downfall. I think the the increase in
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  future liabilities for you guys will become a massive problem.
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  And the bigger it grows, like the bigger problem it is because
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  the more you're going to rely on Bitcoin going up by some amount
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  in order to pay the obligations. So actually I think your biggest
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  risk is will be the success of this product.
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  And I also think like, yeah, anyway, so.
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  So it is what it is what it is. It's interesting, right?
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  I mean, you're the the downside risk of your position is an is
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  an interesting perspective, but OK.
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  No, for you guys, for for you guys specifically, I think
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  that's like one of your core risks is like is this thing
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  continues to grow and is super successful.
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  I think that'll be a strange. Position you're like man, you're
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  you're you're gonna have a hard time because your product's
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  gonna be so successful like you well.
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  It's not a product, It's a, it's an obligation.
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  It's an, it's an obligation. Yeah, it's a liability.
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  You're selling too many liabilities.
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  That's not a weird position to have.
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  So he says the success of this product is going to be it's own
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  downfall. Now, I don't think Coffee Zilla
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  is talking about the Defy leverage layer on top of STRC.
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  He's talking about STRC and SATA themselves.
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  He thinks the underlying products are unsustainable.
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  And the reason he thinks that is that he doesn't believe Bitcoin
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  will keep going up. He thinks 13% growth is
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  unrealistic. He thinks 30% is insane.
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  And that's where his whole analysis falls apart.
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  Watch what happens when Walton asks him to follow the math. 13%
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  a year for 50 years. How much will Bitcoin cost,
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  assuming it goes up at 13% a year, right, which is y'all's
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  cost of capital in 50 years today that Bitcoin will cost $36
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  million. Do I think Bitcoin every Bitcoin
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  will cost $36 million in the year of our Lord 2076?
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  No, I do not. I think that is crazy.
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  I think that's unrealistic 20. In 50 years.
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  Yeah. What, Like what was the price?
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  What was what else is 50 years old that we could try to compare
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  here? The largest, the largest company
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  in the equity market 50 years ago had to have been like, damn,
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  not even $100 billion, probably $50 billion.
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  I don't even know. 50 years ago. But you asked me to show you the
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  math. Do you think it's realistic for
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  Bitcoin to cost $36 million in 2076?
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  Yes, yes. Like, yes, undeniably, yes,
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  absolutely. Yeah, because the US debt to GDP
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  is growing at a a 3.5% compound annual growth rate.
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  So right now it's at 120%. It's growing every single year.
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  Like at what? Point is, the US debt growing at
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  3 1/2 percent makes it logical that Bitcoin would grow grow at.
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  13% The probability of Fiat demise is high.
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  So Coffeezilla ran the compound interest calculator himself and
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  when 36,000,000 per Bitcoin came out, he calls it crazy and
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  unrealistic. And I get it, $36 million per
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  Bitcoin in today's dollar sounds insane.
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  But Bitcoins 200 week moving average compound annual growth
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  rate, which smooths out the volatility and gives you the
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  structural trend, has never gone below 22.6% in any year on
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  record. The mean is 76%, the median is
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  55%. The worst year on record was
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  22.6%. And Coffeezilla can't believe
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  13%. Here's the disconnect.
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  He doesn't understand The total addressable market of this
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  asset, $900 trillion of global assets.
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  Bitcoin is $1.7 trillion. Now a fixed supply monetary
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  asset in a world of permanent debasement doesn't just go up,
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  it goes up a lot. It has to.
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  And because Coffeezilla can't see that, he can't locate where
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  the danger actually lives. Then comes the moment that
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  breaks his whole framework. I look at Bitcoin, I look at, I
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  look at strategic reserve, Bitcoin reserve.
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  I look at, you know, BlackRock holding Bitcoin.
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  I look at Michael Saylor holding 4% of Bitcoin or something like
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  that. I look at all these different
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  players, the institutional players and I go all of not all
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  most of the big events that are going to have massive, you know,
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  kind of like Bitcoin will have addressed the markets.
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  It's going to address. A lot of those have already
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  occurred. And so I see Bitcoin more like,
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  hey, it, it's the people who have wanted it, who are going
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  to, it's going to address largely it has addressed
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  eventually it will come to a point of I think you'll start to
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  see like an equilibrium. And I think if you, if you take
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  the case of Bitcoin being an inflation hedge, if you agree
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  with that, you would agree that when it once it's a mature
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  asset, it's going to go up at the price of inflation, not
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  every year, whatever, not as a regular thing, but eventually
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  you would you would say that which is not 13%, which is not
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  11 1/2%, which is definitely not 30%, Yes.
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  Look the money, the money supply is going up at 6.7% compounded
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  annually, 6.7%. The money supply is going up at
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  6.7% compounded annually. the US debt to GDP that like the the
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  health of the US government and the business of the US
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  government is compounding at 3.4% annually.
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  It's at 120% right now. OK.
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  Is that less than 13 percent? Is that less than 13%?
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  Look, look, these just. It is like.
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  Why do you hold dollars if? Why don't you listen?
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  Are dollars risky? Let me ask you that, coffee.
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  Are dollars risky? In what sense?
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  I don't know, are they risky? I mean, you need to give me like
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  a are you asking if there's inflation?
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  Yeah, is holding dollars risky? I think it's a liquid asset.
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  It's a very liquid. Very.
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  Return free risk. Our dollar's risky and you can't
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  answer the question. He calls the dollar a liquid
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  asset. Walton calls it return free risk
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  and you can cut the silence with a knife.
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  This paints the picture of the whole disconnect when the D5
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  yield coins blow up, And some of them will, because 5X leverage
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  on any asset eventually finds the wall.
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  Voices like Coffeezilla will look at the wreckage and say I
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  told you so, and they'll be wrong.
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  Not because they were wrong about the leverage, but because
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  they can't tell the difference between Bitcoin and the casino.
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  And this isn't just a Coffeezilla problem either.
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  Corey Clipston posted on X calling Defy Looping Yield
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  products on STRC the best candidate for the next crypto
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  blow up. Lynn Alden replied that she's
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  been focused on exactly this risk since the strategy earnings
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  call 3 months ago. But the distinction here is
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  important. Clipston and Alden aren't
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  warning you about Bitcoin. They're not warning about STRC.
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  They're warning about the leverage layer on top of it.
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  That's the difference between someone who understands the
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  architecture and someone who doesn't.
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  STRC is not the next Terra Luna. The collateral is real, the
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  yield mechanism is transparent, the capital structure is
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  regulated. But the D5 products being looped
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  on top of it AT-35 and 10X leverage, That's when it starts
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  to rhyme. Not because the collateral is
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  fake, but because leverage doesn't care what it's built on
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  when it unwinds. So here's the full picture.
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  Sailor is stacking with laser focused relentlessness that
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  borders on obsession. He's basically engineering
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  inevitable S&P 500 inclusion. He's building the most
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  successful credit product in American financial history.
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  And he's welcoming the speculation frenzy migrating out
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  of the dying crypto markets because every dollar of it, no
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  matter how reckless, gets converted into Bitcoin on his
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  company's balance sheet. The model works, but the
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  leverage on top of it will very likely burn people and Bitcoin
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  doesn't carry their way when the yield coins blow up coffee,
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  Zilla will say he called it. The headlines will read Bitcoin
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  backed products collapse and they'll all be wrong again about
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  what actually failed because they never understood what
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  succeeded. That's the line.
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  Bitcoin is not the derivatives built on top of it.
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  Understand the difference. Get too close to the fire and
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  you will get burned. Don't play Fiat games.
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  Stay humble, hold your own keys, and enjoy the ride.
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  So do you think this Defy Leverage stack blows up?
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  Is Sailor playing with fire? The strategy Make the S&P 500
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  this year. Drop your thoughts in the
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  comments. And if you made it this far,
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  don't forget to like the video and share it with someone who
• 15:04
  needs to hear it. And of course, subscribe to
• 15:06
  Simply Bitcoin so you don't miss the next one.
• 15:08
  We'll see you Thursday.