Then what we're doing is very straightforward. We over collateralize it and for every $5 of Bitcoin, we sell a dollar of credit. And the dollar of credit has a defined yield. And there are a lot of people that they believe Bitcoin is a legitimate asset. They just can't stand the volatility. They don't want to take money they need for their kids' tuition in the fall and invest in Bitcoin because they need to pay a bill in 12 weeks. And so for them, digital credit makes a lot of sense because the principal is protected, it's stable, and then they're getting paid three or four times the money market. And it's the superior aspects of Bitcoin over other capital assets, which allow us to pay that superior dividend yield.
Hey guys, welcome to Everyday Finance. The intersection of geopolitical volatility and institutional resilience currently defines the crypto market. As a brief military exchange between the US and Iran pushed oil prices above $100 and triggered $300 million in liquidations, temporarily dragging Bitcoin below $80,000. Despite this friction, diplomatic progress toward a 14-point memorandum of understanding promising sanctions relief and a long-term uranium moratorium offers a macro stabilizer alongside the Clarity Act, which the White House confirms is on track for a pre-July 4 passage. This regulatory momentum is bolstered by a historic streak of Bitcoin ETF inflows totaling nearly $4 billion over 6 weeks, signaling robust institutional demand that outweighs short-term volatility. Furthermore, Michael Saylor has quelled market fears by clarifying that MicroStrategy's new STRC dividend mechanism is not a threat to price stability, asserting that the market's depth is now far too liquid for any single entity to disrupt Bitcoin's long-term trajectory as a foundational global asset.
Yeah, I think that you should be a net accumulator of Bitcoin. Like when I say never sell your Bitcoin, I mean make sure that if you were to spend it on something, you replenish it in the time you spend it. So there are also a lot of crypto people or a lot of Bitcoin people that say they want to spend Bitcoin to buy things. And if you were to spend Bitcoin, I would say just replenish the Bitcoin. So you don't want to be a net seller of Bitcoin because Bitcoin is capital. You want to end every year with more Bitcoin than you started the year. And the analogy I'd give you is if Google spent a billion dollars to invest in data centers so that they could make 10 billion dollars. They're making net 9 billion dollars. It wouldn't crash the dollar market, right? Oh, Google spent dollars. Google sold dollars to buy data centers. The dollar would be fine. It wouldn't undermine the Google business model. Oh, they spent a billion dollars to invest in their business. That's fine. Right? And so it'd be fine for Google. It's a rational thing to do. Sometimes you spend money to make more money. So if you're spending one Bitcoin to make 10 Bitcoin, I think it's fine for Bitcoin. I think it's fine for the company.
I think it strengthens our company because if our company has the ability to tap the crypto liquidity market. If we can raise liquidity by selling spot Bitcoin, that's a 20 billion dollar spot market and a 50 billion dollar derivative market every day. That's a powerful energy source. So we want to be able to tap that market when the equity capital markets aren't as liquid as the commodity market for Bitcoin. And so whenever a company strips its options, whenever we say we will never do something, we always regret it, whatever it is. Give you another example, right? If we say we would never ever buy our stock, we would always sell our stock, then short sellers would sell our stock, and they would sell it down to a dollar. The stock trades at a big discount to NAV, we would buy it back. Then the short sellers have something to lose, then we would make a lot of money by them being irrational. And so, what we did say in our earnings call yesterday is we're prepared to trade STRC for the common stock. We'll trade STRC for MSTR. We'll trade BTC for MSTR. We will fund our obligations with BTC or MSTR. We'll do whatever's in the best interest of the company.
But, you know, over time, we expect to be a net Bitcoin accumulator. That doesn't change. The way that we trade our assets day-to-day, whether we sell credit or sell equity or sell capital assets, that will be a function of the market and mispricings. And if you know, the other thing we said yesterday is we're ready to buy our bonds back. So, our corporate bonds trade cheap. They're undervalued, and so it makes sense for us to buy them. It doesn't make sense to sell them. So, we don't sell assets that are undervalued. We buy assets that are undervalued, and then we arbitrage whatever the inefficiency is. And if the market knows we're going to do that, then the market's going to actually fairly value all those assets, and that's to the benefit of all the investors in all those instruments. And ultimately, that's our fiduciary obligation.
Peter thinks Bitcoin's a Ponzi scheme. But Peter is not really a lover of anything in this space. Bitcoin is digital capital, and we've created a digital treasury company by selling equity and credit instruments to buy capital. I think that Bitcoin is going to continue because it represents economic wealth in tokenized form with full property rights for the world. And we have built a credit instrument STRC on top of it, which simply strips the volatility, reduces the risk, and extracts or distills a yield from digital capital. If you don't acknowledge Bitcoin as legitimate, you'll never acknowledge any derivative on top of it as legitimate. But for those people that believe that Bitcoin is digital capital as a store of economic wealth in tokenized form, then what we're doing is very straightforward. We over collateralize it, and for every $5 of Bitcoin, we sell a dollar of credit. And the dollar of credit has a defined yield. And there are a lot of people that they believe Bitcoin is a legitimate asset. They just can't stand the volatility. They don't want to take money they need for their kids' tuition in the fall, and invest it in Bitcoin because they need to pay a bill in 12 weeks. And so for them, digital credit makes a lot of sense because the principal is protected, it's stable, and then they're getting paid three or four times a money market. And it's the superior aspects of Bitcoin over other capital assets which allow us to pay that superior dividend yield.
