MFM #161: Why Michael Saylor Believes Bitcoin is Hope

TL;DR

Michael Saylor argues that cash in corporate treasuries is melting due to central bank money‑supply expansion (15–25% annually), creating a “treasury problem” that Bitcoin solves as the most scarce, thermodynamically sound monetary asset. MicroStrategy converted its $500M+ cash pile and raised debt to buy $2.

Key insights

• The cost of capital exploded from ~8% (2010–2020) to ≥25% after March 2020 because the Federal Reserve expanded M2 money supply by 20–25% per year, causing asset inflation that erodes the purchasing p
• A company holding cash that yields less than the cost of capital is destroying shareholder value; the only way to preserve value is to invest in assets that appreciate at or above that rate.
• Bitcoin is “the apex property” – the scarcest monetary asset, with no counterparty risk, no ability to print more, and immune to property tax, execution, or corruption.