The most fundamental premise is Bitcoin is digital capital, and a lot of the traditional finance establishment doesn't understand capital. And so they don't recognize a capital asset when they see it. So we're acquiring Bitcoin as capital the same way that you might acquire 3% of Manhattan.
So say you believed in Manhattan and you go and you buy up 3% of all the raw land in Manhattan, right? They would call you a Manhattan real estate hoarder. But it was never our intention to hoard the real estate in Manhattan. It was the intention of people that bought Manhattan to develop a great city. And eventually you build buildings on that real estate. And the buildings have cash flows and those are credit instruments. So our company believes Bitcoin is cyber Manhattan, right? It's a place that one day everybody on Earth will want to put some of their money.
We think it's the greatest city in cyberspace. It's the greatest digital property. Just like if you go to Manhattan, you ask people to live in Manhattan, they think that their city is the greatest city. Not just in America, they think that's the greatest city on Earth and people have been buying Manhattan real estate since 1650. Every decade for 300 years and they keep paying more than the previous decade paid and it's never been a bad idea to buy Manhattan because it is the greatest city.
But no one ever called a Manhattan real estate developer a land hoarder, I don't think. Maybe they did, I don't know. But we think that Bitcoin represents the apex property of the human race, digital property.
And our rationale is if it is the apex property in cyberspace, it represents economic spectrum. It's like once upon a time people bought up all of the radio broadcast rights over the United States. And yeah, you might have called them spectrum hoarders. But without the spectrum there would be no AT&T or Verizon, you can't have mobile phones. So you need the spectrum. And so we view Bitcoin as economic spectrum and we think it's just going to get more scarce and more valuable over time because there's a lot of money in the world and as people want to move their money in cyberspace, they're going to want to buy up that spectrum. And so our company's been accumulating it with an eye toward developing it.
And there are a lot of ways to develop capital. If you had $50 billion of capital, you could use it to launch a commodities exchange, you could trade derivatives, you could use it to underwrite insurance. Insurance companies have capital. You could turn it into a bank and you could use it to buy consumer loans or you could buy commercial loans. We have chosen to use it to create and sell credit.
So another way to say it, if you've heard of annuity companies, companies that actually create annuities, you can buy an annuity, they'll pay you 7% or 8% or 6%. We're in essence creating annuities. And the most famous one is STRC and it basically is a digital credit instrument that right now pays 10.75% dividend yield monthly in cash.
And the way we do it is we invest that capital into Bitcoin which is appreciating faster and we scrape off the first 10.75%. We pass it through to the credit investors and because we are the capital investors, we hold the capital, we take the long view and if you have enough capital and you have a long enough view, you can strip the volatility and the risk off of the instrument and offer the credit investor 80 or 90% less risk, 80 or 90% less volatility and you can extract the dividend or the annuity stream they want.
The remainder goes to the equity investor and generally if you were in the business of creating annuities for people, you wouldn't just call the company a Bitcoin hoarder, right? Any more than you call the related company a land hoarder. That's not what they do, right? They're creating buildings for people to live in.
But you're a hoddler for sure.
Yeah. We're just believers. Again, just like if you ever met someone in Manhattan, you ask them if they're ever going to sell their apartment, they're like, sell it for what? Like literally people that have a nice piece of real estate in Manhattan will say I'm giving it to my heirs and they'll give it to their heirs. It'll be in the family for the next 100 years because every place on Earth is a step down.
And all you got to do is go talk to someone that's a big New Yorker, you'll hear that over and over again. So our view is yeah, this is the apex property. So we're going to develop it and we're going to enhance it over time, but no, we're not really looking to sell.
So today you announced another acquisition, another purchase. I think it was about 10,600 Bitcoin. And when you announced on a Monday though, that doesn't mean you bought it Monday. That means it could have been from the last week or so, correct?
Yeah, we normally announce those things over the course of a week. So on Monday morning we'll announce what we did in the previous week. This week we announced something like $960 million worth of purchases. But a week ago we also announced about $950 or $960 million of purchases. So about a billion a week for the past two weeks. So this announcement was everything we did Monday through Friday of last week.
So what factors do you consider when making these purchases?
We buy Bitcoin whenever we have money.
I would say tongue in cheek, I only buy Bitcoin with the money you can't afford to lose. So this is the 90th purchase. And so we've done it 90 times. It's a very simple way to think of it. So Bitcoin's been going up about 45% a year for the past five years. I expect it to go up 30% on average for the next 20 years. It was going up 80% on average five years ago. So it's decelerating from 80 to 70 to 60 to 50 to 40 and it should continue to decelerate towards something like 1.5x the S&P.
And so it's not hard to get to a forecast of about 30% over 20 years. But that being the case, the way I think about Bitcoin is it's a digital monopoly on capital. It's the world reserve capital network that's growing 30% a year that you can purchase at one times revenue.
So if you're the CEO of a company and I came to you and said I have a monopoly that's growing 30% a year for the next 20 years and you can buy it at one times revenue, the question is would you do the deal? And of course the answer is everybody would do the deal, right? If anybody ever said I have a company growing 30% a year for the next 20 years and they'll sell themselves to you at one times revenue, you're like, well why are they so stupid? Like no one's ever that stupid. The last time Google bought a high growth company, they paid 27 times, 30 times revenue, 10 times revenue. Normally you pay 10, 20, 30 times revenue for a high growth company. So a high growth company that will sell itself at one times revenue is a pretty extraordinary deal.
Now for us though, it's a much simpler decision. It's not just a monopoly growing 30% a year for the next 20 years that we can buy at one times revenue. We can buy it risk free. Okay, well why can I buy it risk free? Because my company is constructed for Bitcoin maximalists. The only people that buy my equity are people that believe Bitcoin is going to win and is going to grow 30% a year. If you didn't think Bitcoin was going to grow faster than the S&P index there's no way you would buy MSTR.
Okay, if you thought, that might have been a debate back in 2020, but after the company bought Bitcoin 89 times in a row, if you're still holding the equity, you have to believe in Bitcoin. So when we buy Bitcoin, we've already stripped the existential risk off of the investment. What matters is not whether anybody else in the world thinks Bitcoin is risky. What matters is do my equity investors think Bitcoin is risky. And so I'm doing an acquisition which is by definition accretive without risk and I'm getting the deal at one times revenue.
Right? And we're creating a very transparent credit profile, a very transparent performance profile. And that means that our hurdle rate is 30% risk free. So if you were to pitch me anything, if you said I have the best startup idea ever, I guarantee you 40% a year for the next decade, I would think that's not as good as the deal I have buying Bitcoin. You could promise me 50% a year for the next 20 years, we wouldn't do the deal because I would have to convince 100 outside equity investors that your deal is better than Bitcoin and I wouldn't be able to convince them, number one, but number two it would be a dilutive distraction.
So we have a very simple business model. It's just we just buy Bitcoin. We expect 30%. We know it'll be volatile. It'll be 30% with 30 vol over 20 years and right now it's 40-50 vol. And if you have the ability to just keep doing the same trade over and over again, it makes sense. You could think of it as maybe one of the all-time great roll-ups.
Where you're just rolling up a digital asset with a limited supply. And every time you buy a bit more, there's that much less supply in the market, the scarcity goes up. The risk doesn't go up because let's face it, if Bitcoin goes to zero tomorrow, it doesn't matter whether I own 1% of it or 2% or 3% of it or half a percent of it. It's irrelevant, right? I mean, it's kind of like back to the Manhattan example. If you've decided you believe in Manhattan and you bought 1% of Manhattan, you might as well buy two or four because if Manhattan sinks under the ocean, you're going to be bankrupt regardless, right? There's nothing you can do if Manhattan sinks beneath the earth. But once you've accepted that as the systemic existential risk, and your opinion is Manhattan is not sinking beneath the ocean, then you've already got a basis in the city. You've already managed the rest and the least risky, most accretive thing you can do is just continue on your strategy.
