Strategy Inc. (NASDAQ:MSTR) Executive Chairman Michael Saylor estimates Bitcoin (CRYPTO: BTC) would be trading between $40,000 and $50,000, without his company’s $62 billion buying campaign over the past five years.

Strategy Spent $62 Billion Supporting The Bitcoin Network

Saylor acknowledged that Bitcoin would have succeeded without Strategy but argued the company filled a vacuum that accelerated price appreciation. 

Strategy owns approximately 818,000 Bitcoin, making it the world’s largest corporate holder.

“Bitcoin would have been successful without me and without our company, and if we hadn’t done it, someone else would have stepped into that role,” Saylor explained on the When Shift Happens podcast. 

“But presumably somewhere between $10,000 and $80,000. It wouldn’t be as high as it is right now,” he added.

Strategy started buying Bitcoin in 2020 when the price was around $10,000. The company has since deployed $62 billion through cash purchases, convertible bonds, equity raises, and preferred stock offerings to accumulate its position.

STRC Preferred Stock Strips Volatility, Pays 11.5% Yield

Saylor explained how Strategy created STRC, a preferred stock that strips volatility from Bitcoin while paying an 11.5% monthly dividend as return of capital. 

This structure allows investors to defer taxes until they collect all their principal back, typically around nine years.

The preferred stock targets trading around $100 with much lower volatility than Bitcoin’s 40% annualized swings. 

Strategy has sold approximately $8 billion of STRC, creating what Saylor calls “digital credit” powered by “digital capital.”

“For every dollar of equity capital of Bitcoin that we have, we can create 10 to 20 cents of credit,” Saylor stated. 

The company aims to grow its credit issuance to $200 billion to $400 billion if it reaches $1 trillion in Bitcoin holdings.

Company Outgrew Every Capital Market Before Inventing New One

Strategy became the largest issuer of convertible bonds globally before outgrowing that market entirely. 

The company then moved to equity raises, becoming the biggest equity issuer in the United States, before creating the STRC preferred stock structure.

Saylor compared the process to John D. Rockefeller’s Standard Oil, which distilled crude oil into increasingly pure kerosene for rocket fuel. 

Strategy keeps refining its financial instruments to create the purest form of low-volatility Bitcoin exposure.

“We kept working to distill super pure oil. The highest form of distilled crude oil is kerosene. It’s rocket fuel,” Saylor explained, drawing the parallel to STRC as the most refined Bitcoin-backed financial product.

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