Mark Moss explains how Michael Saylor uses leverage to amplify Bitcoin returns. Saylor borrows at 10% to fund 30% leverage on his holdings. If Bitcoin returns 30% annually, that leverage multiplies his equity returns to roughly 2.8-3 times what an unlevered position would earn.
If you and I both buy 1 Bitcoin and Bitcoin goes up 5x, who makes more money? The same. We just— yeah, why? Why? Because we both bought 1 Bitcoin. Yeah. If I borrowed 50% of my Bitcoin value and bought more Bitcoin and you didn't, and Bitcoin went up 5x, who made more money? The person who borrowed the leverage. Yeah, of course. So we can establish that if I use leverage, I will outperform people who don't. Yes. Okay, so what's Saylor doing? He's using leverage. Using leverage, right? So his goal is to get a 30% leverage ratio. He He has his charts. He shows if Bitcoin averages at 30% ARR and I do a 30% ratio of leverage and I pay out no more than 10% coupon yield, we'll do a 2.8x factor. It's math. It's friggin math, bro. So if I lever my assets up 30% and Bitcoin goes up 30% and I don't pay more than 10% on the debt, I make a 3x return. What he's doing is he's levering the position. That's why it will outperform Bitcoin.
