You guys are acquiring Bitcoin faster than anybody could have imagined. You're on track to a million Bitcoin this year. It looks like maybe by Q3. We'll see how fast things go. So, number one, when I look at that, as a Bitcoin bull, I see the price at a million dollars coming sometime in the next 5 or 10 years. So, you have a million Bitcoin, a million-dollar price tag, a trillion-dollar book value, maybe more. I'm curious, where do you see this growth trajectory over the next decade and the price of Bitcoin going? Let's talk about where you see your growth trajectory first. I heard Michael say something about stopping around 7% of the Bitcoin supply, but you're at over 4% now.
I think it's premature to make guesses of what the company will do more than 2 years out. And I say that because 2 years before we launched Stretch in July of 2025, we never contemplated the idea of launching a perpetual preferred to amplify the company and to acquire more Bitcoin and provide our shareholders Bitcoin per share. The space of Bitcoin, of digital assets, of decentralized finance is moving so fast, innovation is moving so quickly that we need to constantly innovate. And so, I don't get obsessed with when are we going to get to a million Bitcoin. I find it to be comical and interesting and fun to watch people in their predictions, but that's not something Michael and I sit every day or every week or every month and say, "Hey, when do you think we're going to?" We don't have a model that shows when we're going to get to a million Bitcoin in the company. And so, when we get to 7%, if we get to 7%, it isn't something I sit and think and obsess about. The things we sit and think and obsess about are how do we increase Bitcoin per share? And how do we innovate with products built on top of Bitcoin that people will want? How do we build a great, fantastic product that people want? And I think if the obsession is to the common shareholder about increasing Bitcoin per share and the obsession is to the 6 billion people around the world, that's really what we care about. Like, how do you create a product that allows us to give back to Bitcoin and to individuals.
But you do have to think about it in some regard because the demand is insatiable. So, you could just go as hard and fast as we can, but I would also imagine that you don't want to take on a bunch of debt at a rate higher than you have to pay either. So, you sort of have like a lever where it's like, "Shoot, we could slow it down and drop the rate to 8% and see if we still have enough demand. Obviously, we'll have more at 11, but maybe we still have pretty good demand at 8. Let's just try 8." Or it's like, "No, Bitcoin's cheap right now. Let's go as hard as we can." So, you do sort of have a little bit of a lever based off of that.
We do. And what's cool about the Stretch product, especially given its distribution at retail, is we can watch the product every day and let the market decide. Like, if we get over-amplified or if we don't have enough US dollar reserve or whatever, we do clearly have some risk models to decide what is the right level of credit to issue and what is the right level of MSTR to issue. On the one side, there are the things we can sell: MSTR, traditional debt, preferred, and those things. Those are things that we can sell, and potentially Bitcoin too. Bitcoin is a thing that we could sell into the market. And there are things that we can buy. We can buy Bitcoin, we can buy US dollars essentially, we can buy back our convertibles. So we have models that show sort of those are the trades we can do as a company. And what is that result? That's the payout, the yields if you needed to. It's not just to pay the yields, it's also to increase the Bitcoin per share, so to buy the Bitcoin.
But I guess what I'm asking, if I'm more specific, is how long will the rate stay at 11.5%? Meaning, because I would imagine you'd want to pay less if the market would bear. And so, well, if we have like a ratio of how much Stretch we want to add at a percent of amplification or whatever. And so how do you think through keeping that rate at 11%? At what point do you think about starting to slow that down if demand's too high?
Yeah. There are two mechanisms by which we can decrease the rate. One is demand goes high and the pricing starts to go over $100, the 30-month VWAP. If we don't want to take all the demand that comes in and the price starts to increase a little bit, we can decrease the rate programmatically.
But if you don't want to take all the demand that comes in, so then that's the question. So is there a point where you get too much demand and like we just don't want to bring on that much?
Not yet. Not yet. There could be over time because the other thing is, let's say what will likely cause the demand to increase is the Bitcoin price will increase. And if Bitcoin price increases, then our asset base goes higher. The amount of Bitcoin we have is now worth about $60 billion. Let's say Bitcoin price doubles, it's $120 billion and our amplification gets cut in half if we don't issue more Stretch. So it is a multivariate equation there and the flywheel could work itself.
But yeah, the other mechanism to decrease the rate is if SOFR goes down, which it likely will with the new Fed chair. She'll come in, decrease the Fed funding rate and SOFR will go down and we would likely decrease the rate as a result of that, too.
Yeah. Okay. Okay, so you're going to track that a little bit.
Yeah, we'll keep an eye on that.
